How Do Business Ethics, Environmental Compliance, and Product Innovation Affect The Sustainability Performance of Creative Industry MSMEs in Bandung?
DOI:
https://doi.org/10.58812/sdi.v1i03.2082Keywords:
Business Ethics, Environmental Compliance, Product Innovation, Sustainability Performance, Creative Industry MSMEsAbstract
This study aims to examine the influence of business ethics, environmental compliance, and product innovation on the sustainability performance of Micro, Small, and Medium Enterprises (MSMEs) in the creative industry in Bandung, Indonesia. Utilizing a quantitative approach, data were collected from 120 respondents through a structured questionnaire using a 5-point Likert scale. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3.0). The results indicate that all three independent variables—business ethics, environmental compliance, and product innovation—positively and significantly affect sustainability performance. Among these, product innovation has the strongest impact, followed by business ethics and environmental compliance. These findings highlight the importance of integrating ethical behavior, regulatory adherence, and continuous innovation to promote sustainable growth in the creative MSME sector. This study provides theoretical and practical insights for entrepreneurs, policymakers, and researchers seeking to strengthen the role of sustainability in creative economic development.
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