Rachma Yuliana

Type of the article: Research Article

Abstract
This study examines the determinants of sustainable performance by investigating the role of green relational capital, with green innovation and green entrepreneurial orientation as mediators, among 193 tourism-based MSME owners operating across tourism destinations in East Java, Indonesia. The proposed research model was empirically tested using partial least squares–structural equation modeling (PLS-SEM). The findings show that green relational capital has a significant effect on sustainable performance (β = 0.330, p < 0.01) and significantly influences green innovation (β = 0.725, p < 0.01) as well as green entrepreneurial orientation (β = 0.565, p < 0.01). Green innovation significantly affects sustainable performance (β = 0.329, p < 0.01), as does green entrepreneurial orientation (β = 0.287, p < 0.01). Furthermore, green innovation mediates the relationship between green relational capital and sustainable performance (β = 0.162, p < 0.01), while green entrepreneurial orientation also acts as a mediator (β = 0.238, p < 0.01). These results underscore the strategic importance of leveraging environmentally oriented relational networks to enhance innovation capabilities and entrepreneurial orientation in supporting sustainability goals among tourism-sector MSMEs.

Acknowledgment
This study was supported by a grant from the Directorate of Research and Community Service, Ministry of Education, Culture, Research, and Technology of Indonesia, through the Fundamental Basic Research Program 2025, under contract number 128/C3/DT.05.00/PL/2025.