Interrelation Green Innovation and Customer Value Co-Creation Behavior In Support Business Performance

Abstract

Objective: This research is to analyze the interrelationship between green innovation and customer value co-creation behavior in supporting business performance. Reference Theoretical: Research was conducted on batik SMEs in East Java using quantitative approach, and responses from 250 green batik consumers were obtained through a purposive random method sampling. Method: The analysis technique used is Structural Equation Modeling (SEM). using SmartPLS software. Results and Conclusion: Research findings reveal that there is an interrelationship between green innovation against CVCB and business performance as well as CVCB against business  performance. Strategygreen innovation encourage companies to produce friendly products environmental, safe for consumption and provides the best value for consumers. Condition This will automatically affect business performance. Results of this research supports previous research. Creation of related products environment increases value and function for customers (Green and Peloza 2011). Research Implications: Based on the results of this research, it is recommended that further research be able to carry out research replication from the perspective of green batik SMEs so that various difficulties experienced by SMEs can be studied because consumers observe the stages of the green batik production process to obtain the batik products they want and need. Value: The novelty of this research is that it combines two grand theories, namely green marketing and service dominant logic theory (green innovation and CVCB). In practice, these two theories require cooperation between producers and consumers.