Peran Green Innovation dalam Meningkatkan KeunggulanKompetitif UMKM Berbasis Circular Economy di Desa Kesongo
DOI:
https://doi.org/10.46975/Keywords:
green innovation, circular economy, competitive advantage, SMEs, water hyacinthAbstract
This study aims to analyze the role of green innovation in enhancing the competitive advantage of circular economy-based SMEs engaged in water hyacinth handicrafts in Kesongo Village, Tuntang District, Semarang Regency. A qualitative approach with a descriptive method was employed. Data were collected through observation, in-depth interviews, and documentation involving business owners, craftsmen, village officials, and other stakeholders. The findings reveal that green innovation is implemented through the use of environmentally friendly water hyacinth as raw material, product diversification, design development, efficient resource utilization, and waste reduction practices. The application of circular economy principles is reflected in transforming water hyacinth, previously considered an environmental problem, into value-added products and reusing production residues. These practices enhance SMEs’ competitive advantage through product differentiation, value creation, environmentally responsible business image, and improved market competitiveness. The study concludes that green innovation and circular economy are effective strategies for supporting business sustainability while strengthening the competitive position of local resource-based SMEs.
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