The Relationship of Green Marketing Innovation and Job Protection on Competitive Advantage of Micro, Small and Medium Enterprise (MSME): Mental Accounting as Moderating

Abstract

Micro, small, and medium enterprises (MSMEs) contribute to the economy and community welfare. MSMEs need to make various efforts to create competitive advantage in order to maintain the sustainability of their business. This research aims to provide empirical evidence of the relationship between environmentally friendly marketing innovation, job protection, and accounting mentality as moderating variables for increasing competitive advantage. The research objects are MSMEs of Batik, Weaving and Craft products in Pekalongan, Indonesia. This research uses a quantitative approach by distributing questionnaires to MSMEs. The research instrument uses a questionnaire taken by purposive sampling. Analysis technique using regression analysis. Research data was analyzed using the WarpPLS tool. The results of the research are that job protection has an influence on competitive advantage. However, green marketing innovation has no effect on creating MSME competitive advantage. Finally, Mental accounting is able to strengthen the relationship between green marketing innovation and job protection on the creation of MSME competitive advantage.