Analysis Of Green Leadership's Impact On Operational Efficiency In Small Industrial MSMES In Indonesia: A Literature Review
Abstract
This study explores the impact of green leadership on operational efficiency in small industrial MSMEs in Indonesia through a qualitative literature review. By examining existing academic works, the research identifies the key role of green leadership in enhancing organizational performance by integrating environmental sustainability into decision-making and operational practices. The findings suggest that green leadership fosters improved resource utilization, energy conservation, and innovative environmentally-friendly practices, which contribute to operational efficiency. Leaders who prioritize sustainability within MSMEs help promote responsible resource use, reduce waste, and enhance productivity, despite the resource constraints typical of small enterprises. The study further reveals that while green leadership shows promise in optimizing operational processes, challenges such as limited financial resources, technological adoption, and managerial capacity impede full implementation. In conclusion, the paper highlights the importance of green leadership in achieving both ecological and operational gains in MSMEs and recommends that policymakers and business leaders collaborate to promote sustainable practices in small-scale industries. The study provides critical insights for enhancing MSME competitiveness while addressing environmental responsibilities.
Keywords: Green Leadership; Operational Efficiency; MSMEs; Sustainability; Literature Review
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HUMANIS (Humanities, Management and Science Proceedings) is a national peer reviewed and open access journal that publishes significant and important research from all area of agroindustry.
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