Green Self-Efficacy, Green Knowledge Sharing, and Sustainability Performance: The Mediating Role of Green Innovation

Abstract

The growing demand for sustainable business practices has prompted small and medium-sized enterprises (SMEs) to strengthen their green innovation capabilities and sustainability-oriented human resource practices. This study examines the influence of green self-efficacy and green knowledge sharing on sustainability performance, with green innovation as the mediating variable, among coffee shop SMEs in Garut Regency, Indonesia. A quantitative explanatory design was applied, and data were collected through a five-point Likert-scale questionnaire from 153 SME owners and managers selected via purposive sampling. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4. The findings reveal that green self-efficacy and green knowledge sharing positively and significantly affect green innovation, and that green innovation positively and significantly affects sustainability performance. Green innovation also mediates the relationships between green self-efficacy, green knowledge sharing, and sustainability performance. The results suggest that improving the sustainability performance of SMEs is shaped not only by technological and operational factors but also by individual environmental capabilities and an organizational culture that encourages knowledge sharing. This study contributes to green management literature by offering an integrative model linking psychological factors, green knowledge management, green innovation, and sustainability performance in the Indonesian SME context.