Indra Prasetyo

Type of the article: Research article

Abstract
SMEs in East Java, Indonesia, play a crucial role in supporting the national economy, yet they continue to face significant obstacles in the context of global competition. Key challenges include limited access to financial capital, suboptimal adoption of green business strategies and technology, low awareness regarding environmental performance in business operations, and the need for human resource development. Furthermore, a substantial number of SMEs operate informally, which restricts their ability to access policy support and broader markets. This study aims to examine the mediating effect of green business strategy on the relationship between environmental performance and the marketing performance of SMEs. The analysis was conducted with 103 randomly selected batik SME entrepreneurs in East Java. A quantitative approach was employed, involving structured surveys and data analysis using the SEM-PLS technique. The empirical findings reveal that environmental performance has a significant positive impact on green business strategy (significance value p = 0.000***), and green business strategy, in turn, positively affects the marketing performance of SMEs (p = 0.003***). Additionally, environmental performance also directly contributes significantly to SME marketing performance (p = 0.001***). Indirectly, green business strategy is proven to mediate the relationship between environmental performance and SME marketing performance (p = 0.004***). These results indicate that environmental performance not only directly influences SME marketing performance but also exerts an indirect effect by strengthening green business strategies.

Acknowledgment
We acknowledge the invaluable support and resources provided by the leadership of Wijaya Putra University Surabaya, which were instrumental throughout the research. Furthermore, sincere gratitude is expressed to all individuals who contributed directly or indirectly, offering assistance and time that significantly facilitated the successful completion of this study.

Type of the article: Research Article

Abstract
Every developing country, including Indonesia, relies on SMEs as an important part of its economic structure. However, SMEs encounter significant problems in terms of competition on the local and global markets. This study aims to examine the mediating role of innovation capability in the relationships between customer relationship management, market orientation, and SME performance. The survey targeted 103 SMEs in the food and beverage sector in East Java, Indonesia. This is quantitative research. SEM-PLS (SmartPLS software) was used to evaluate the study model. Empirically, customer relationship management has a marked influence on the performance (p = 0.000) and innovation capability (p = 0.005) of SMEs. Besides, market orientation has a significant impact on both SME’s performance (p = 0.001) and innovation capacity (p = 0.000). The capability of innovation also has an influence on the performance of SMEs (p < 0.001). Further, the study revealed that innovation capability partially mediates (p = 0.042) the relationship between customer relationship management and SME performance, as well as the relationship between market orientation and SME performance (p = 0.002). Therefore, the findings reveal that customer relationship management and market orientation in SMEs in East Java, Indonesia, have direct effects on SME performance and indirect effects through innovation capabilities.

Acknowledgment
The research process would not have been possible without the Rector of Universitas Wijaya Putra Surabaya, whose support and dedication have been instrumental in the completion of this article. Support and cooperation, which might have been missed or taken for granted in the conduct of the research, are deeply appreciated. This research would not have been successful without the countless hours and contributions of many, and for that, they have my sincerest appreciation.