Green Entrepreneurship and Digital Transformation for Sustainable Economic Growth of Indonesian MSMEs

Abstract

Global changes characterized by the acceleration of digital transformation, environmental crises, and international economic dynamics have driven Micro, Small, and Medium Enterprises (MSMEs) to adapt through the adoption of green entrepreneurship and business digitalization. In Indonesia, MSMEs make a major contribution to national economic growth; however, they still face several challenges, such as low utilization of digital technologies, limited environmentally friendly innovation, and insufficient awareness of sustainable business practices. This phenomenon highlights the importance of integrating green entrepreneurship and digital transformation in strengthening sustainable economic growth.

This study is based on the Theory of Sustainable Development and the Technology Acceptance Model (TAM). The novelty of this research is the development of an empirical model that simultaneously links green entrepreneurship, digital transformation, and sustainable economic growth in the MSME sector. The study employs a mixed-method approach using an explanatory sequential design, in which quantitative data is collected through surveys of MSME actors in Indonesia, followed by in-depth interviews to strengthen the interpretation of the findings. Quantitative data is analyzed using Structural Equation Modeling (SEM-PLS), while qualitative data is examined using thematic analysis techniques.

The results show that green entrepreneurship and digital transformation have a positive and significant effect on sustainable economic growth. In addition, digital transformation is proven to enhance MSME competitiveness, improve operational efficiency, and support sustainable business practices amid ongoing global economic changes.

Keywords: Green Entrepreneurship, Digital Transformation, Sustainable Economic Growth, MSMEs, Global Economic Change.