Track: Industrial Management

Abstract

This study examines the role of the owners’ green knowledge of technological aspects (relative advantage, compatibility, and complexity) and green manufacturing’s adoption by small and medium-sized enterprise(s) (SME(s)) producing batik textiles in Indonesia. Six hypotheses are tested using partial least squares (PLS), based on the survey approach. We obtained the data from 131 owners of SMEs and used this to analyze the hypotheses. A direct relationship is tested for between three technological aspects and green manufacturing’s adoption. A moderating relationship is examined between the technological aspects, green manufacturing’s adoption, and the owners' green knowledge.  The results suggest that relative advantage and complexity have no significant influence on green manufacturing’s adoption. However, relative advantage shows a significant effect when moderated by the green knowledge of the owners of the SMEs. Compatibility has a direct and significant effect, and it gets stronger when it is moderated by the owner's green knowledge. Meanwhile, complexity does not show a significant effect on either relationship.