Sud Sudirman

Global concern over environmental pollution has sparked the adoption of green business practices, which are essential for the sustainability of SMEs through green economy initiatives and renewable resources. This study aims to analyze the integration of circular and digital economy policies along with social protection policies in supporting green business innovation among culinary SMEs. By emphasizing the significance of government roles and innovation capabilities, the paper proposes that policies promoting environmentally friendly practices and social security can enhance sustainable performance in alignment with SDG principles. The study employs a quantitative approach, surveying 200 culinary SMEs in Surabaya City in Indonesia, a city known for its vibrant SME sector and commitment to sustainable practices. The data analysis, conducted using PLS-SEM through SmartPLS 4, reveals that circular economy policies (t-test = 6.503; p-value = 0.000) and social security (t-test = 3.848; p-value = 0.000) significantly enhance green business innovation, while digital economy policies are not significant (t-test = 0.725; p-value = 0.468). Furthermore, green business innovation positively impacts sustainable performance (t-test = 24.418; p-value = 0.000). However, internal innovation capabilities do not moderate the relationship between integrative policies and green business innovation. The findings indicate that government policies significantly influence green business innovation in MSMEs, particularly through circular economy regulations. Regulatory support and incentives are crucial for driving environmental sustainability and enhancing competitiveness. Strengthening digital economy policies through improved technology access and digital literacy will further support green innovation, while investments in internal innovation and human resources are vital for sustainable growth.

Acknowledgment
This study is funded by the Riset Kolaborasi Indonesia (Grant No. B/43869/UN38.III.1/LK.04.00/2024) by LPPM Universitas Negeri Surabaya.

Type of the article: Research Article

Abstract
Amidst global calls for sustainable transformation, higher education institutions are urged to align their operations with the Sustainable Development Goals (SDGs). This study investigates how green university culture and digital transformation contribute to SDG achievement within Indonesian education human resources universities (IEHRUs), focusing on financial, environmental, and human development outcomes. Utilizing a quantitative approach, a survey was conducted with 435 students from State University of Surabaya, a leading IEHRU. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4. The results reveal that green university culture significantly influences financial growth (β = 0.427, t = 5.662, p < 0.001), environmental quality growth (β = 0.510, t = 7.564, p < 0.001), and human development growth (β = 0.430, t = 7.123, p < 0.001). Similarly, digital transformation has significant positive effects on financial growth (β = 0.313, t = 4.294, p < 0.001), environmental quality growth (β = 0.203, t = 2.713, p = 0.007), and human development growth (β = 0.313, t = 5.447, p < 0.001). These three dimensions, in turn, significantly enhance SDG performance at the university level (R² = 0.610). The study underscores the strategic role of green values and digital innovation in university sustainability. It offers empirical insights for educational policymakers to embed sustainability across institutional governance, pedagogy, and operations, particularly in teacher-training institutions poised to catalyze wider societal change.

Acknowledgment
This study was funded by the Assignment Grant of the Faculty of Social and Political Sciences, Number 48546, from the Institute for Research and Community Service (LPPM) of Universitas Negeri Surabaya.