Harnessing Sustainability and Innovation in Micro, Small, and Medium Enterprises: Strategies and Challenges for Competitive Advantage

Open

Marsya Aulia Rizkita, Agung Winarno, Hadi Suwono

2025 International Journal of Sustainable Development and Planning Vol. 20 Issue 6 Article Cited by 2 Quartile

Abstract

This study focuses on the relationship between innovation and sustainability practices in Micro, Small, and Medium Enterprises (MSMEs). As MSMEs navigate the complexities of modern commercial demands and environmental expectations, adopting sustainable practices is crucial. This article utilizes data analytics, explores green marketing, and evaluates occupational health and safety management systems, drawing on empirical research to highlight essential elements that affect MSMEs' performance. Moreover, we investigate how innovation can enhance performance and competitive advantage, particularly during challenging times like the COVID-19 pandemic. Through a comprehensive literature review, we identify barriers and enablers to incorporating sustainability into business models, offering strategic recommendations for MSMEs to thrive in an increasingly environmentally conscious market. This study enriches the understanding of MSMEs' operational dynamics and underscores the importance of a sustainable strategy for long-term survival and growth. ©2025 The authors.

Affiliations

Faculty of Economics and Business, State University of Malang, Malang, 65145, Indonesia; Applied Marketing Management, Faculty of Vocational Studies, State University of Malang, Malang, 65145, Indonesia; Department of Management, Faculty of Economics and Business, State University of Malang, Malang, 65145, Indonesia; Department of Biology, Faculty of Mathematics and Natural Sciences, State University of Malang, Malang, 65145, Indonesia; Center of Research and Innovation in STEM Education, Faculty of Mathematics and Natural Sciences, State University of Malang, Malang, 65145, Indonesia