The Role of Stakeholder Pressure in Enhancing Green Innovation Performance: The Moderating Role of Green Culture

The issue of sustainability has received much attention from scholars, experts, and the community, along with the need for a more environmentally-friendly business practice.The purpose of this study is to analyze how and when stakeholder pressure can lead to green innovation performance in Indonesian MSMEs, mainly in several provinces on Java Island.We consider the mediating role of green HRM to bridge the relationship, as well as the moderating role of green culture.Using quantitative approach, we distributed online questionnaire towards 280 MSMEs actors determined by purposive sampling method.The data obtained is analyzed using Structural Equation Modeling with Partial Least Squares.The findings indicate that stakeholder pressure can influence green environmental performance both directly and indirectly through the mediating role of GHRM.In addition, green culture is also found to moderate the influence of stakeholder pressure on green innovation performance, that the relationship is stronger when green culture in the MSMEs is held high.