From Green Brands to Marketing Gains: Exploring Eco-Brand Resonance Capability in Indonesian Handicraft SMEs

Abstract

This study aims to analyze the role of eco-brand resonance capability in improving the marketing performance of small and medium enterprises (SMEs) in the Indonesian handicraft industry. As consumer awareness of sustainability increases, environmentally-based marketing strategies are becoming increasingly important for companies to maintain competitiveness. This study uses a quantitative approach involving 112 SME owners in the handicraft sector. Data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) to evaluate the relationship between eco-brand resonance capability and marketing performance.The results show that eco-brand resonance capability plays a significant role in improving marketing performance through consumer loyalty and positive perceptions of environmentally friendly brands.. The implications of this study indicate that SMEs that invest in eco-brand resonance strategies can gain sustainable competitive advantages, increase customer loyalty, and strengthen brand position in the market. Therefore, a sustainability-based approach is not only a marketing strategy but also a long-term investment in sustainable business growth andcontributes to the strategic management and sustainable marketing literature and offers a new model that combines dynamic capability and resource advantage theories.