Issue

Vol. 13 No. 1 (2026): June

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Submitted
6 September 2025
Accepted
7 June 2026
Published
13 June 2026

Copyright (c) 2026 Firli Agusetiawan Shavab, Akbar Tanjung (Author)

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Green Procurement and Eco-Friendly Technology as Drivers of SME Sustainability: The Mediating Role of Circular Economy

https://doi.org/10.24252/minds.v13i1.61292
Firli Agusetiawan Shavab
Universitas Sultan Ageng Tirtayasa, Indonesia
Akbar Tanjung
Universitas Sultan Ageng Tirtayasa, Indonesia

Corresponding Author(s) : Firli Agusetiawan Shavab

[email protected]

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 13 No. 1 (2026): June

Abstract

Small and Medium Enterprises (SMEs) support regional economic development, yet their sustainability remains constrained by resource inefficiency, limited technological capability, and rising environmental pressure. This study offers novelty by explaining how Green Procurement and Environmentally Friendly Technology strengthen SME Sustainability through Circular Economy practices, integrating the Resource-Based View and Natural Resource-Based View. Using a quantitative design with Partial Least Squares Structural Equation Modeling, data were collected from 179 SME owners and managers across various sectors in Banten Province, Indonesia. The findings show that Green Procurement has no significant direct effect on SME Sustainability but significantly promotes Circular Economy practices, which then enhance sustainability. Environmentally Friendly Technology positively affects both Circular Economy and SME Sustainability, while Circular Economy mediates both proposed relationships. The study implies that SMEs should integrate green procurement, environmentally friendly technology, and circular economy practices to strengthen long-term sustainability in developing regions.

Keywords

Green Procurement Circular Economy MSME Sustainability
Shavab, F. A., & Tanjung, A. (2026). Green Procurement and Eco-Friendly Technology as Drivers of SME Sustainability: The Mediating Role of Circular Economy. Jurnal Minds: Manajemen Ide Dan Inspirasi, 13(1), 313–326. https://doi.org/10.24252/minds.v13i1.61292
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Author Biographies

Firli Agusetiawan Shavab, Universitas Sultan Ageng Tirtayasa

Faculty of Economics and Business

Akbar Tanjung, Universitas Sultan Ageng Tirtayasa

Faculty of Economics and Business

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