The effect of sustainable manufacturing on environmental performance through government regulation and eco-innovation

• Published in: International Journal of Industrial Engineering and Operations Management
• Main Author: Hermawan A.N.; Masudin I.; Zulfikarijah F.; Restuputri D.P.; Shariff S.S.R.
• Format: Article
• Language: English
• Published: Emerald Publishing 2024
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85187547465&doi=10.1108%2fIJIEOM-04-2023-0039&partnerID=40&md5=a3e2b0d058a3b2ad509b72eb24f5ec58

Purpose: The study aims to determine the impact of sustainable manufacturing on environmental performance through government regulation and eco-innovation in Indonesian small and medium-sized enterprises (SMEs). Findings: The results indicate sustainable manufacturing plays a significant role in SMEs' environmental performance and regulations, and eco-innovation can moderate it. It also reveals that government regulation has a positive and significant effect on environmental performance. Moreover, eco-innovation has a positive and significant effect on environmental performance. Practical implications: The findings of this study indicate that SMEs can embrace sustainable manufacturing practices and achieve their long-term sustainability goals by adhering to regulations, collaborating with stakeholders and implementing eco-friendly innovations. Originality/value: This research uncovers ground-breaking perspectives on the evolution of scientific knowledge about the impact of eco-innovation, regulatory measures and sustainable manufacturing practices on the environmental performance of SMEs. © 2023, Aris Nur Hermawan, Ilyas Masudin, Fien Zulfikarijah, Dian Palupi Restuputri and S. Sarifah Radiah Shariff.