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Vol. 5 No. 4 (2025): December

Absorptive Capacity, Green Entrepreneurship, and Sustainable Human Capital Effects on Green Innovation in SMEs

https://doi.org/10.35912/ahrmr.v5i4.3110
27 Jan 2026

Abstract

Purpose: This study utilizes existing research on knowledge capabilities and firms’ Natural Resource-Based View (NRBV) to explore how absorptive capacity and green entrepreneurship orientation influence green innovation. Additionally, it examines the mediating influence of sustainable human capital within this context. Methods: This study was conducted using an associative design and a quantitative approach. The number of samples gathered was 100 valid respondents, and the questionnaire was spread online. The data collected will then be processed and analyzed with the PLS-SEM analysis using SmartPLS software.

Results: The results revealed that green entrepreneurship orientation significantly predicted both sustainable capability and the adoption of green innovation. Additionally, sustainable human capital is a critical determinant of green innovation adoption. Surprisingly, absorptive capacity did not significantly influence green innovation. Hence, several hypotheses were proven to be correct.

Conclusion: The results indicate that increasing R&D investment, e-commerce employment, and transaction volume can significantly boost Indonesia's economic growth, demonstrating the importance of these factors in driving the digital economy’s growth.

Limitations: This study was limited to SMEs in Greater Jakarta with small samples.

Contribution: These results have several implications for SMEs to further enrich the understanding of how the Natural Resource-Based View (NRBV) and relational theory facilitate adaptation to green innovation.

Keywords

Absorptive Capacity Green Innovation Green Entrepreneurship Orientation Sustainable Human Capital

How to Cite

Novela, S. ., Giffari, A. ., Nizam, M. K. ., & Ihsan, A. . (2026). Absorptive Capacity, Green Entrepreneurship, and Sustainable Human Capital Effects on Green Innovation in SMEs. Annals of Human Resource Management Research, 5(4), 387–402. https://doi.org/10.35912/ahrmr.v5i4.3110

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Author Biographies

Ahmad Giffari Bina Nusantara University, Jakarta, Indonesia

Dr. Ahmad Giffari is a professional who besides working in government institutions is also a lecturer at Bina Nusantara University in the Business Creation Program, and teaches Business Sustainability and Business Ethics courses.

Muhammad Khairul Nizam Bina Nusantara University, Jakarta, Indonesia

Muhammad Khairul Nizam is a final year student majoring in Business Creation Program, Binus University, who is currently running an enrichment program, which is doing real work practice in the field of entrepreneurship.

Akmal Ihsan Sunan Kalijaga State Islamic University, Yogyakarta, Indonesia

Akmal Ihsan is a lecturer who teaches at Sunan Kalijaga State Islamic University Yogyakarta, in the management study program.

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors

1 . Selly Novela
Bina Nusantara University, Jakarta, Indonesia
2 . Ahmad Giffari
Bina Nusantara University, Jakarta, Indonesia
3 . Muhammad Khairul Nizam
Bina Nusantara University, Jakarta, Indonesia
4 . Akmal Ihsan
Sunan Kalijaga State Islamic University, Yogyakarta, Indonesia

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Vol. 5 No. 4 (2025): December
Section: Articles
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