Rike Selviasari, Sudarmiatin, Ery Tri Djatmika Rudijanto Wahju Wardhana, Budi Eko Soetjipto, Rafikhein Novia Ayuanti, Ustadus Sholihin
Addressing environmental challenges requires urgent action across all sectors. As key drivers of economic growth, SMEs (Small and Medium Enterprises) have significant potential to implement Green Product Knowledge to reduce environmental impacts while promoting sustainable development. This study uses quantitative research to identify current trends and gaps in the literature on perceived green value and knowledge in the context of SMEs, particularly those in the creative industries. This study aims to explore global themes and developments in green product knowledge among Woven Ikat Batik SMEs. Most importantly, this study examines the influence of Green Knowledge and Perceived Value on Purchase Decisions, with Digital Marketing, Brand Image, and Brand Awareness as mediators. This study used a quantitative approach involving a survey of 200 users of Woven Ikat Batik in MSMEs in Kediri Regency, East Java, Indonesia. The structural model was tested using Structural Equation Modeling via Partial Least Squares (SEM-PLS 4.0). R-Square analysis revealed several findings. The path from the independent variables (Perceived Value and Green Knowledge) to Digital Marketing (Z1) showed substantial explanatory power of 0.574, indicating that these variables account for 57.4% of digital marketing efforts. In contrast, the contribution to Brand Image (Z2) was low, with an R-Square value of 0.167, indicating the need for further exploration. The contribution to Brand Awareness (Z3) was moderate, at 0.452. Direct hypothesis testing confirmed that Environmental Knowledge, Digital Marketing, Brand Image, and Brand Awareness significantly influenced Purchase Decisions, while Perceived Value did not show a significant direct effect. This study highlights the need for SMEs to integrate their sustainability commitments into their digital presence to improve consumer purchasing behavior. © 2026, Malque Publishing. All rights reserved.
Faculty of Economy and Business, Universitas Negeri Malang, Malang, Indonesia; Faculty of Economy, Universitas Islam Kadiri, Kediri, Indonesia
