Exploration of Sustainable SME Business Integration Models Towards Environmental Resilience in Batu City and Bali

Introduction: SMEs play a central role as the locomotive of the economy, especially in areas rich in local wisdom and economic potential. SMEs to develop new products, improve operational efficiency, and explore wider market opportunities.Objectives: This study aims to explore and identify sustainable business integration models for small and medium enterprises (SMEs) that contribute to environmental resilience in Batu City and Bali. The study aims to know how SMEs can incorporate sustainability into their operations as well as enhance ecological resilience in these areas.Methods: Qualitative and quantitative approaches are applied in this study to analyze the integration of e-navigation, green finance, and business cooperation among SMEs in Batu and Denpasar, Bali. The data were collected through the application of in-depth interviews and questionnaires, assessed using SEM-PLS in a bid to cross-validate the variable relationship. There were 790 SMEs, where 266 utilized the Slovin formula.Results: SMEs of the two zones were increasingly and more inclined towards practices such as waste reduction, resource efficiency, and the use of renewable energy, the study found. In particular, eco-tourism and organic agriculture businesses are leading the way in environmental resilience. The research identified several successful integration models that align with both economic viability and environmental sustainability.Conclusions: External factors affect the environmentally friendly environment. Adoption of environmentally friendly influences the environmentally friendly environment. External factors affect the transformation of SMEs. Adoption of environmentally friendly influences the transformation of SMEs. Environmentally friendly environment influences the transformation of SMEs. External factors affect the transformation of SMEs through environmentally friendly environment. Adoption of environmental innovation has a significant influence on the transformation of SMEs through environmentally friendly environment.