Integrating Digital Marketing and Green Innovation: How Gen Z Entrepreneurial Orientation Shapes MSME Marketing Performance
DOI:
https://doi.org/10.54099/hbr.v6i2.1964Keywords:
Digital Entrepreneurial Marketing, Green Product Innovation, Gen Z Entrepreneurial Orientation, MSME Marketing Performance, BaliAbstract
Purpose – This study examines the effects of Digital Entrepreneurial Marketing (DEM) and Green Product Innovation (GPI) on MSME Marketing Performance (MP), investigates the interaction between digital and green capabilities, and analyzes the moderating role of Gen Z Entrepreneurial Orientation (GZEO) in strengthening this relationship. Methodology/approach – A quantitative explanatory research design was employed using data collected from 110 Gen Z entrepreneurs managing food and beverage MSMEs in Bali, Indonesia. Respondents were selected through purposive sampling, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The analysis included measurement model assessment, structural model evaluation, and bootstrapping for hypothesis testing. Findings – The results show that Digital Entrepreneurial Marketing has a positive and significant effect on MSME Marketing Performance (β = 0.284; p = 0.004), while Green Product Innovation also has a positive and significant effect (β = 0.246; p = 0.012). Moreover, the interaction between DEM and GPI significantly improves marketing performance (β = 0.221; p = 0.020). Gen Z Entrepreneurial Orientation positively moderates the effect of digital-green capability integration on marketing performance (β = 0.198; p = 0.029). The model explains 61.2% of the variance in MSME Marketing Performance (R² = 0.612), indicating substantial explanatory capability. Originality/value – This study contributes to the MSME literature by conceptualizing digital entrepreneurial marketing and green product innovation as complementary and interacting strategic capabilities rather than merely independent predictors of performance. It further identifies Gen Z entrepreneurial orientation as a boundary condition that strengthens the performance benefits generated by digital-green capability integration in Gen Z-led food and beverage MSMEs. Keywords: Digital Entrepreneurial Marketing; Green Product Innovation; Gen Z Entrepreneurial Orientation; MSME Marketing Performance; Digital-Green Capability Integration; PLS-SEM.
References
Al Buraiki, W., & Nofal, R. (2026). Entrepreneurial orientation and marketing performance in SMEs: The mediating roles of digital marketing capabilities and digital marketing implementation in Oman. Sustainability, 18(4). https://doi.org/10.3390/su18041925
Campos-Núñez, F., & Serrano-Malebrán, J. (2024). Enhancing firm performance: How entrepreneurial orientation and information technology capability interact. Applied Sciences, 14(16). https://doi.org/10.3390/app14167243
Chinakidzwa, M., & Phiri, M. (2020). Impact of digital marketing capabilities on market performance of small to medium enterprise agro-processors in Harare, Zimbabwe. Business: Theory and Practice, 21(2), 746–757. https://doi.org/10.3846/btp.2020.12149
Clara, C., Sulastri, S., Natalisa, D., & Maulana, A. (2026). Aligning digital capability and entrepreneurial orientation for sustainable competitive advantage in F&B SMEs. Journal of the International Council for Small Business. https://doi.org/10.1080/26437015.2026.2701805
Goyal, A., & Mishra, U. S. (2024). Impact of entrepreneurial orientation on MSME performance: Mediating role of entrepreneurial competency. Entrepreneurship Research Journal, 14(4), 1583–1609. https://doi.org/10.1515/erj-2022-0315
Handayani, W., Yaacob, Z., Utomo, S. S., Majid, N., & Mandasari, V. (2026). Green technology as an indispensable mediator of leadership and vision for green product development in Surabaya MSMEs. Discover Sustainability, 7(1). https://doi.org/10.1007/s43621-025-02405-0
Harsasi, M., Mutmainah, I., Hidayati, A., & Ernawati, E. (2026). Why readiness is not enough: Routinized digital use and MSME competitiveness. Problems and Perspectives in Management, 24(2), 487–501. https://doi.org/10.21511/ppm.24(2).2026.33
Hasanah, Y. N., Anggraeni, O., Kusnaman, D., Hasibuan, R. R., & Efendi, B. (2025). Entrepreneurial marketing and marketing performance in Gen Z entrepreneurs: Exploring the mediating pathways to entrepreneurial resilience. Journal of Ecohumanism, 4(1), 3583–3602. https://doi.org/10.62754/joe.v4i1.6195
Iriani, S. S., Witjaksono, A. D., & Haryono, N. A. (2026). The role of entrepreneurial orientation, dynamic capability, and environmental turbulence on marketing capability in improving firm performance of Sidoarjo MSMEs. Review of Integrative Business and Economics Research, 15(4), 747–761.
Jalil, M. F., Marikan, D. A. B. A., Ali, A., & Jais, M. B. (2025). The influence of blockchain technology on green entrepreneurial orientation through digital knowledge sharing among Gen Y and Gen Z entrepreneurs: A multigroup analysis. Sustainable Futures, 9. https://doi.org/10.1016/j.sftr.2025.100636
Ji, H., Zhou, S., Wan, J., & Lan, C. (2024). Can green innovation promote the financial performance of SMEs? Empirical evidence from China. Corporate Social Responsibility and Environmental Management, 31(2), 1288–1302. https://doi.org/10.1002/csr.2633
Kartini, T., Silaningsih, E., Sudarijati, S., Suryani, D., & Anwar, S. (2025). Enhancing MSME performance: The strategic role of entrepreneurial orientation, motivation, and organizational commitment. Journal of the International Council for Small Business. https://doi.org/10.1080/26437015.2025.2601683
Labella-Fernández, A., Martínez-Egea, C., & Payán-Sánchez, B. (2026). How does entrepreneurial orientation influence firm performance? A moderated mediation model of tacit knowledge and green innovation. Journal of Innovation and Knowledge, 12. https://doi.org/10.1016/j.jik.2025.100913
Maharani, N. P. S., Yasa, P. N. S., & Setini, M. (2026). The influence of live streaming, online customer reviews, and discounts on impulse buying behavior on TikTok Shop in Bali. Husnayain Business Review, 6(2), 149–159. https://doi.org/10.54099/hbr.v6i2.1805
Mahida, L. R., & Anggadwita, G. (2026). Driving sustainable business: The role of green innovation in MSMEs in Bandung, Indonesia. Springer Proceedings in Business and Economics, 63–85. https://doi.org/10.1007/978-3-032-04214-9_5
Manurung, L., Ningsi, E. H., & Imam, C. (2025). Digital marketing capability and green innovation effects on SME performance: Market orientation mediation and environmental dynamism moderation. Journal of Logistics, Informatics and Service Science, 12(7), 87–102. https://doi.org/10.33168/JLISS.2025.0706
Munandar, J. M., Cahyadi, E. R., & Andrianto, M. S. (2025). The impacts of business sustainability factors on competitiveness and marketing performance: An exploratory approach to the case of Indonesian micro-, small, and medium enterprises. Sustainability, 17(10). https://doi.org/10.3390/su17104593
Najib, M., Fahma, F., Abror, A., & Suhartanto, D. (2022). Organizational capability, market perspective, and green innovation adoption: Insight from Indonesian food processing small and medium-sized enterprises. Journal of Small Business Strategy, 32(2), 51–66. https://doi.org/10.53703/001c.32293
Nguyen, H. T. N., Han, J. W., & Pham, H. C. (2024). Joint effect of entrepreneurship and dynamic capabilities on firm performance: An empirical investigation among ICT-SMEs. Baltic Journal of Management, 19(1), 85–102. https://doi.org/10.1108/BJM-03-2023-0102
Novitasari, D., Goestjahjanti, F. S., Rahardja, U., Santoso, S., Sihotang, S. V., Anggraini Santoso, N., & Cesna, G. P. (2025). Optimizing MSME performance through marketing capabilities and digital marketing adoption. Proceedings of the 2025 4th International Conference on Creative Communication and Innovative Technology. https://doi.org/10.1109/ICCIT65724.2025.11167878
Nurbasari, A., Machmud, A., Aribowo, A., & Megawati, S. (2026). Digital entrepreneurial marketing and industrial transformation: Evidence from food and beverage small and medium industries in Indonesia toward Sustainable Development Goals (SDGs). Indonesian Journal of Science and Technology, 11(2), 217–232. https://doi.org/10.17509/ijost.v11i2.89774
Rahman, M. (2023). The virtuous circle between green product innovation and performance: The role of financial constraint and corporate brand. Journal of Business Research, 154. https://doi.org/10.1016/j.jbusres.2022.09.001
Setiawan, B., Pamungkas, B., Mekaniwati, A., & Kusuma, P. M. (2025). The strategic role of digital transformation, dynamic and agile capabilities for the performance of micro, small, and medium enterprises (MSMEs). The Bottom Line, 38(2), 130–153. https://doi.org/10.1108/BL-08-2024-0120
Setini, M., Ul Haq, F., Santikayasa, I. P., & Darma, D. C. (2026). Integrative model of green marketing: Product innovation, digital strategy, and the role of brand image mediation in Gen Z consumers. International Journal of Innovation and Technology Management, 23(4). https://doi.org/10.1142/S0219877026500094
Setini, M., Dewi, N. K. C. P., & Sari, I. G. A. A. I. (2026). Determinants Of Impulsive Buying Behavior On Tiktok Shop Generation Z. Jurnal Manajemen dan Bisnis Performa, 106-123.
Sulaiman, M. A. B. A. (2025). Green product innovation as a mediator between green market orientation and sustainable performance of SMEs. Sustainability, 17(4). https://doi.org/10.3390/su17041628
Ukshini, K., Bajrami, R., & Arifaj, A. H. (2025). Meta-analysis of publications on the impact of digital marketing strategies on small and medium enterprise performance. Innovative Marketing, 21(4), 130–146. https://doi.org/10.21511/im.21(4).2025.10
Wibowo, N. M., Widiastuti, Y., & Tampubolon, L. R. R. U. (2025). The role of local wisdom on green competitive advantages in batik MSMEs: Green innovation as a mediator. International Journal of Management and Sustainability, 14(2), 601–615. https://doi.org/10.18488/11.v14i2.4275
Wulan, T. S., Solihin, D. A., Devi, P. A. P., & Za, S. Z. (2025). The effect of digital marketing and product innovation on MSME sales performance in the digital economy era. Daengku, 5(6), 735–753. https://doi.org/10.35877/454RI.daengku4604
Zahoor, N., & Lew, Y. K. (2022). Sustaining superior international performance: Strategic orientations and dynamic capability of environmentally concerned small- and medium-sized enterprises. Business Strategy and the Environment, 31(3), 1002–1017. https://doi.org/10.1002/bse.2931
Zheng, S., Ye, X., Guan, W., Yang, Y., Li, J., & Li, B. (2022). Assessing the influence of green innovation on the market performance of small- and medium-sized enterprises. Sustainability, 14(20). https://doi.org/10.3390/su142012977
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Milla Permata Sunny, Made Setini, Anhar Yani
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This work is licensed under a 