Green Innovation & Green Competitive Advantage in the impact of Green Marketing Orientation on Purchase Intention on the Use of Fabric Shopping Bags in UMS Management Students

ABSTRACT


INTRODUCTION
The growing recognition of the potential negative effects of both business activities and environmental changes on a global scale has heightened corporate awareness about sustainability (Patari et al., 2016).Consequently, the concept of green marketing is becoming increasingly popular, particularly in shaping the existing competitive advantage of a company, there is an increasing emphasis on the incorporation of green marketing strategies (Papadas et al., 2019) [1].Despite the pervasive influence of environmental concerns on individuals, numerous studies have integrated green marketing issues into reviews of management and economics literature (Borsatto & Amui, 2019;Borsatto et al., 2020) [2].Innovation can inject fresh energy into companies and serves as a significant driving force for global economic growth.The rapid flourishing of economy is often ISSN: 2808-103X Proceedings homepage: https://conferenceproceedings.ump.ac.id/index.php/pssh/issue/view/2956 propelled by widespread technological innovation.However, this progress has taken a toll on the ecological environment, leading to considerable damage.As global economic development continues to advance, an increasing number of individuals are becoming aware of the environmental challenges associated with economic prosperity.
While innovation facilitates economic development and societal advancement, the environmental impact of innovation has garnered significant attention within the industry [3].Plastic shopping bags are one of the things that are inherent in everyday life.Because of its lightweight, sturdy, and waterproof properties, plastic bags are a practical choice for carrying merchandise compared to fabric bags.Plastic shopping bags are even the main ingredient that sellers give to consumers for free to carry their expenses.Uncontrolled use of plastic would be very dangerous to the environment.It takes the earth tens to hundreds of years to dismantle the plastic garbage.Plastic bag used as a shopping bag without having to bother carrying a reusable fabric bag / totebag (reusable bag).
It is known that plastic is an inexpensive and durable material that is widely used globally.Several environmental observers have stated that plastic garbage is an ecological disaster because of its difficult nature to destroy.Plastic garbage consists of plastic bags, plastic bottles, food packages and other plastic items.Especially when it comes to plastic shopping bags, or in everyday life, we call them "crackers."The production of these plastic shopping bags consumes 12 million barrels of non-renewable oil, equivalent to 11 trillion rupees.According to Septiani (2019), plastic plays a significant role in daily life, serving as a widely utilized packaging material for food, beverages, and other items due to its robust, lightweight, and convenient properties.However, the overuse of plastic poses a threat to the environment, because plastic is non-bideogradable that can damage the environment.(Maydhina & dkk., n.d.)With a population of 270.20 million people, Indonesia produced 33.133.277.69 tons of garbage per month in 2020.Out of the number of these garbages per month, only 15.167.553.06 tons or about 45.81% are handled.Waste that is not properly and properly managed will end up in the ocean, causing both direct and indirect problems such as water, air, and soil pollution, increased greenhouse gases, sources of diseases such as diarrhoea, flood disasters and other problems.In response, many individuals have switched to textile bags as a replacement for plastic bags that have long been part of society's lives.
From the problems that occurred there was one attempt that could be made by using a cloth bag as a shopping bag.By using reusable bags as an effort to raise awareness among students about reducing plastic waste.The move aims not only to reduce the amount of plastic garbage but also to give students the opportunity to protect the environment.The ban on single-use plastic bags has been officially imposed in Jakarta, Indonesia since Wednesday, July 1, 2020.The ban is contained in Governor's Regulation No. 142 of 2019 on the obligation of adopting shopping bags that are eco-friendly (Kompas.com, 2020).Meanwhile, the plastic garbage problem in Bali is still unresolved.The government of Bali has banned the use of three types of single-use plastic bags that have been regulated in the Bali Governor's Decree No. 97 Year 2018 on Restrictions on the Subsidiary Use of Disposable Plastic Waste.[4] Surakarta City is one of the cities with a dense and uncovered TPA.The waste that went into Princess Cempo's TPA in 2015 amounted to 1.5 million tons, while the planned capacity was 1.3 million tons.(Rahayu, Yulianto& Daryanto, 2017).Princess Cempo's TPA capacity in 2020 is based on Kristanto's research, suffering overloads of 950.621.11m3 (Kristanto, 2011).This is due to an increase in the amount of garbage that goes into the TPA every year and the processing that exists is just landfill.Surakarta was established as the centre of national activities and the Andalusian area of Central Java Province, making the City of Surakarta the growth centre of the Central Java region of the south.This condition has caused social and economic activity that affects the amount of garbage in Surakarta City.(Sukrorini, 2014).As a center of activity, Surakarta City often holds annual events with local culture as a promoter and attractive activity that then attracts audiences from various areas leading to increased volume of garbage in Surakarta (DLH Kota Surakarta, 2017;Triyono & Patola, 2015).[5] Environmental issues are now one of the top speeches of the global community, with many parties trying to reduce environmental damage.It is one of the completion attempts and shows the level of awareness in the environment is also increasing.From an economic point of view, many manufacturers are starting to innovate by developing environmentally friendly products.With increasing public awareness of the importance of preserving environmental conditions, environmentally friendly products are in great demand.In the emerging landscape of economic globalization, there is a surge in green production and green consumption trends across various industrial sectors.Increasingly, companies are integrating environmental strategies into their competitive priorities.The competitive landscape among companies now encompasses not only factors like cost, quality, and delivery but also includes adherence to environmental standards.By implementing green initiatives, companies can provide customer value to transform threats into opportunities.Hence, green innovation holds significant potential to play an important role in achieving sustainable business development for companies.[6] Organizations are compelled to confront environmental challenges in light of various ecological issues, prompting ISSN: 2808-103X Proceedings homepage: https://conferenceproceedings.ump.ac.id/index.php/pssh/issue/view/2957 the adoption of green economic growth strategies.Consequently, organizations strategize to meet market demands for environmentally friendly products and address business environmental requirements.

Green Innovation
Green innovation or green innovation is a strategy in creating new products or developing existing products significantly.In addition to concentrating on the product, business operations should also give a strong emphasis on the development and creation of significant processes, company methods, new marketing strategies in business activities.(Shahwat, 2019).According to (Damas, 2021) green innovation is a new technology or improvement associated with a production process to reduce the impact of environmental damage, thereby improving energy efficiency, reducing pollution, recycling waste, and creating environmentally friendly products.
Soewarno dkk.( 2019) said that The implementation of green innovation strategies reflects an organization's commitment to environmental concerns and its commitment to enhancing performance.Companies adopting green innovation strategies can promptly establish a distinct identity in addressing environmental issues, contributing to the long-term success of their business strategy.Additionally, within green innovation, the value creation process can be extended through the supply chain, as orchestrated by the company's executives (Shamah & Singh, 2012).Therefore, it is expected that the concept of green innovation can produce environmentally friendly products for long-term business sustainability.Green Innovation is an important driver of sustainable development that aims to minimize the negative effects on the environment and nature throughout every phase of the product's life cycle.
According to (Damas, 2021) green innovation is a new technology orimprovements related to the production process to reduce the impact of environmental damage, thereby increasing energy efficiency, reducing pollution, recycling waste, and creating products that are environmentally friendly.Indicators used as follows: 1.The latest technology is used in the production process to reduce energy, water and waste.2. Ecological or eco-friendly materials are used in the products produced by the company.3. Use of eco-friendly product packaging and recyclable materials in the production process can be recycled

Green Competitive Advantage
According to Chen (2011), the concept of green competitive advantage involves the integration of green innovation or environmental management, resulting in the characterization of green competitive benefit as a state where a company holds multiple positions in terms of environmental governance or green innovation.In this scenario, competitors within the organization often find it challenging to replicate the adopted environmental strategy, contributing to the realization of sustainable goals and advantages.Competitive advantage proves adaptable to the business environment and competitive dynamics (Nandakumar et al., 2010).Companies that align with environmental conditions can effortlessly achieve operational cost efficiency and create advantages.
Competitive advantage has the capacity to adjust to the business environment and the dynamics of competition (Nandakumar et al., 2010).Companies that align with environmental conditions can effortlessly achieve operational cost efficiency and establish advantages.Competitive advantage involves striving to deliver superior customer value compared to competitors through economically specific activities, superior quality/service, or a combination of both.(Porter, 1985).[7] Sulistyandari and Sri (2013) assert that green competitive advantage serves as a mechanism for attaining the financial objectives of an organization.It is a strategic tool for achieving the financial goals of the organization and attaining success over its competitors.The effectiveness of green competitive advantage depends on identifying the appropriate dimensions of market products that align with the company's position.Barney (1991) explains that the attributes of resources that possess value for competitive advantages are those related to resources that are resources that are valuable, complex, exclusive, easy to generalize, and difficult to imitate by competitors.imitated by competitors.From this viewpoint, strategic competitive advantage stems from core resources and core competences that hold value, complexity, exclusivity, general difficulty in imitation, and resistance to competitors' attempts at replication.These core competencies are valuable, rare, challenging to imitate, and lack substitutability.(Satria Widiarsa & Sulistyawati, 2018)

Green Marketing Orientation
Chahal dkk.( 2014) conceptualizes the orientation of green marketing with several dimensions, specifically Green Innovation, Greening the Process, and Green Supply Chain.The study also indicates that green marketing orientation plays a crucial role in fostering green innovation and attaining a competitive advantage in the context of green marketing performance.
The first step taken by environmentally friendly market-oriented companies to incorporate green innovation, a practice adopted by businesses to minimize waste and mitigate environmental harm.Green innovation underscores the development of eco-friendly products or processes that adhere to environmental protection standards.Through green innovation, companies can introduce various innovations, including green ISSN: 2808-103X Proceedings homepage: https://conferenceproceedings.ump.ac.id/index.php/pssh/issue/view/2958 managerial practices, green organizational innovations, green product innovations, and green process innovations.[8].Deshpandé and Farley also stated that an environmentally friendly market orientation entails a sequence of cross-functional processes and activities with an ecological focus.Its aim is to create and satisfy customers through a sustainable evaluation of the management of environmentally friendly supply chains and to assess whether improving customer value is a priority.[9]

Purchase Intention
Kerin, Lau, Hartley, and Rudelius (2009) stated that purchase intent refers to a consumer's inclination to purchase a brand or undertake an action associated with a buying decision.It represents the phase at which consumers carry out an evaluation of information received (Official, 2017).(Mulyati & Gesitera, 2020).Waskito and Harsono (2011) found that consumers have a growing level of awareness of environmentally friendly products.However, the results of the study show that the growth of the level of consciousness has not been accompanied by the action or decision of buying green products.[10] Purchase intent signifies the probability that consumers will intend or be inclined to purchase a specific product or service in the future.A higher purchase intention implies an elevated likelihood of making a purchase.Purchase intent serves as a crucial indicator for forecasting consumer behavior.When consumers express a positive purchase intention, it reflects a favorable commitment that motivates them to actualize the purchase.According to Engel (1995), there are three categories of purchase intent: a. Accidental Purchase Unplanned or unintentional purchase is considered to be an impulsive purchase involving an immediate decision made in the store to purchase a product category or brand.b.Partially Intended Purchase Partially planned purchase, the consumer will select the product category and criteria before making a purchase and only decide the brand and type later in the shop.c.Purchase Intended Entirely Planned purchases imply that consumers make decisions about the products and brands to be purchased even before entering the store.
Buying Intentions appear after receiving an incentive from the product seen by the customer, from which it leads to an inclination to sample the product, eventually culminating in a desire to make a purchase (Kotler & Keller, 2016)[11].Purchase intent can be defined as part of consumer behaviour in terms of consumption.Purchase intention reflects consumer short-term behavior towards future purchasing decisions.

Hypothesis
Environmental pressures have driven consumer awareness of environmental protection.Consumers lean towards purchasing products with minimal environmental impact, showing a preference for items that reflect environmental consciousness.The inclination toward green consumerism also stimulates the growth of ecofriendly industries.The rising demand for sustainable products prompts companies to introduce environmentally friendly innovations in order to sustain their business operations.Hence, green innovation can serve as a strategic initiative to mitigate the adverse effects of business processes on the environment, consequently contributing to environmental sustainability.
Previous research has indicated that market orientation serves as a precursor to innovation.A study conducted by Song et al in Chinese manufacturing companies revealed that market orientation influences innovation performance.Factors such as customer demand and competitor pressure are significant motivators for companies to engage in green innovation, aiming to deliver added value.Lin et al's research in Taiwan's hybrid vehicle industry demonstrated that market demand for green products positively influences both green product innovation and green process innovation.According to Vilkaite-Vaitone and Skackauskiene, the initial step for firms embracing green marketing involves the development of green products.Consequently, the more pivotal the role of green marketing orientation, the more crucial green innovation becomes.H1: Green Marketing Orientation has a significantly positive influence on Green Innovation.
A company develops green products to fulfil environmental regulations and improve its ability to compete.To reduce production-related waste, a company implements green innovations.Environmental practices that are part of a sustainability programme are essential to improve environmental, social, and environmental performance.
Based on the results of the study, it proves that eco-labels do not have a significant effect on green purchase intention significant effect on green purchase intention.This means that every time there is increase or decrease in the purchase of green products that have eco-labeling will not be followed by an increase or decrease in green purchase intention.Labelling will not be followed by an increase or decrease in green purchase intention intention.The influence of eco-labels in environmentally friendly products as a form of information delivery that the product is different from other products.information that the product is different from other products.Seen ISSN: 2808-103X Proceedings homepage: https://conferenceproceedings.ump.ac.id/index.php/pssh/issue/view/2959 that this eco-labeling can encourage consumer awareness in choosing environmentally friendly products that are safe and reduce environmental impacts.Choosing environmentally friendly products that are safe and reduce environmental impacts and are good for health.and good for health.So that the good response of consumers who realise it.will have an impact on the intention to purchase environmentally friendly products.However, the results of research conducted by Riyanto et al. (2018) shows that the eco-label has no significant effect on green purchase intention.The research is also in line with Mei et al. ( 2012 (comprising 3 items) and evaluated its impact on performance, revealing that green market orientation enhances business performance.Kumar demonstrated that the early adoption of market orientation results in a distinctive competitive advantage.In a study by Zhou et al., both dimensions of market orientation-customer orientation and competitor orientationwere investigated.The findings indicated that firms with a customer-oriented approach enjoy substantial competitive advantages, particularly in terms of innovation and market differentiation within the global hospitality industry.
In our research, we adopt Chen et al.'s definition of Green Competitive Advantage (GCA), which refers to "the ability to acquire, integrate, transform, and utilize environmental knowledge."Drawing from Kumar et al., we argue that companies fostering a culture of green market orientation can implement more environmentally sustainable processes and activities, ultimately enhancing their capacity to retain key customers and generate increased profits.Lin and Ho emphasize the importance for small and medium-sized enterprises to cultivate green assets and commit to environmental initiatives to enhance their GCA.We argue that companies possessing an environmentally conscious culture, coupled with employees actively delivering eco-friendly products for customer satisfaction, gain an additional competitive edge (Lin et al., 2020).H3: Green Marketing Orientation has a significantly positive influence on Green Competitive Advantage Proactive environmental strategies are closely linked to differentiation strategies, concentrating on the redefinition of a company's processes and the creation of innovations in both products and processes to foster environmental protection.These strategies enable companies to enhance their processes and technologies, while also structuring their organization to effectively adapt to competitive-driven changes.This approach facilitates the development and establishment of a competitive advantage.Lin and Ho highlight the necessity for small and medium-sized enterprises to cultivate green assets and commit to environmental initiatives to enhance their Green Competitive Advantage (GCA).We argue that companies fostering an environmentally conscious culture, with employees actively delivering eco-friendly products to satisfy customer preferences, gain an additional competitive advantage.
The conventional green consumer is inclined to purchase goods that are environmentally friendly.Consumer choices are influenced by incomplete evidence and the perceived value of the product serves as a signal for their purchasing intentions.According to Chen and Chang, green value has a positive impact on consumer purchase intention.Green perceived value is the comprehensive evaluation of the actual benefits consumers derive from a product or service, and it is recognized as one of the emerging factors among green consumers.Green purchase intention is a crucial aspect of the actual behavior of green consumers, signifying their intent to purchase a product if it is perceived as attractive and valuable to them.H4: Green Competitive Advantage has a significant influence on Purchase Intention The impact of Green Marketing Orientation on Purchase Intention is not directly positive.Consumers believe that this shift in consumption trends does not have a significant influence on environmental conservation.Therefore, the contribution of potential consumers to environmental conservation is more evident in resource conservation, using tote bags during shopping, and recycling plastic waste.H5: Green Marketing Orientation has a significant influence on Purchase Intention.
In general, the variables of green marketing and innovation do not give influence on purchasing intention.H6: Green Innovation has a negative mediating effect on the correlation between Green Marketing Orientation and Purchase Intention.
People are increasingly concerned about the environment, which can affect lifestyle changes and ultimately choose to use environmentally friendly products.Consumer demand for environmentally friendly products has prompted certain companies to focus on the green product market.Developing green businesses not only reduces the costs associated with unnecessary waste but also ensures a safe and healthy working environment for employees, contributing to the sustainable and efficient operation of the company.Additionally, studies have indicated that green trust and consumer subjective norms have a positive impact on purchase intention (Konuk et al., 2015;Bong Ko and Jin, 2017).Sreen et al. (2018) highlight that consumer attitudes toward purchasing green products can influence their purchase intentions and, ultimately, their buying behavior..People are starting to pay attention to the environment so that many companies are starting to make environmentally friendly green products and ultimately make buying interest increase.

RESEARCH METHOD
Questionnaire was used as data collection method in this study.The questionnaire comprises a series of inquiries posed by the researcher to gather basic information either through self-reporting or based on the subject's personal knowledge, beliefs, or the subject matter under investigation.(Sugiyono, 2008).Primary data was the data used in this research.According to Malhotra (2015), primary data is data directly obtained from respondents either using a series of questions in the form of questionnaires, interviews and observations.Primary data in this study were obtained from the results of filling out questionnaires from respondents, namely Surakarta Muhammadiyah University students who have used cloth bags as a substitute for plastic bags.
According to (Sugiyono, 2012), a population is a general domain encompassing objects and subjects with specific characteristics determined by researchers, leading to drawn conclusions.In this study, the population consisted of students at the University of Muhammadiyah Surakarta, specifically those from the Faculty of Economics and Business, Management Study Program, class of 2020, who were users of cloth shopping bags.The total population comprised of 672 students.Sugiyono further explains that the sample represents a portion of the population in terms of number and characteristics.In cases where the population is large, and studying every element is impractical, the sample must be genuinely representative.The way to determine the sample in this study is to use the Slovin formula, because considering the large enough population to determine the sample.
Sampling technique is a technique used to take samples so that their representation of the population is guaranteed.In this study, purposive sampling technique was utilized in taking the sample.Purposive sampling involves selecting specific sampling units based on predetermined criteria, aiming to obtain units that possess desired characteristics.The measurements in this study use a five-point Likert Scale which is used to measure each variable item (1 = strongly disagree to 5 = strongly agree).The method used is Structural Equation Modeling (SEM) -Partial Least Square (PLS) using SmartPLS 3.0 software.Descriptive respondents provide an understanding of the profiles that influence the behavior of using cloth bags as shopping bags among FEB UMS Management Study Program 2020 students.The results of the respondent profile presented in the table include gender, age, education, occupation, rarely using cloth bags as shopping bags among students or always using and monthly income.

Data Analysis 3.2.1 PLS Program Scheme
In this study, it was made complete with indicators and hypothesis submission using the Party Least Square (PLS) data analysis technique with the SmartPLS 3.0 program.
The following are the outcomes of the calculated Q-Square value: Q

CONCLUSION AND RECOMMENDATION 4.1 Conclusion
After the research, it has been proven that Green Marketing Orientation significantly impacts Purchase Intention.Conversely, the Green Innovation variable shows an insignificant impact on Purchase Intention.The Green Marketing Orientation variable is stated to significantly influence Green Competitive Advantage, which, in turn, significantly affects Purchase Intention.However, the Green Marketing Orientation variable itself does not have a significant impact on Purchase Intention.The mediation analysis indicates that the Green Innovation variable is unable to mediate the relationship between Green Marketing Orientation and Purchase Intention.On the other hand, the Green Competitive Advantage variable proves to be a mediator in the correlation between Green Marketing Orientation and Purchase Intention.

Limitations
Furthermore, this research has evolved into a compelling exploration, although various researchers have previously studied the relationship between green marketing orientation and green innovation.Introducing Green Innovation and Green Competitive Advantage as mediating factors adds a distinctive dimension to the investigation.The research not only formulates a conceptual framework but also presents an empirical research model, contributing to a deeper comprehension of the subject matter.

Recommendation
In future investigations, exploring different contexts, alternative data sources, or those that track firms and their innovation activities over time would be advantageous.Additionally, delving deeper into the mechanisms through which green innovations and green competitive advantage influence the connection between green orientation and purchase intentions could provide valuable insights.Since green marketing practices may ISSN: 2808-103X Proceedings homepage: https://conferenceproceedings.ump.ac.id/index.php/pssh/issue/view/2965 exhibit distinct characteristics in various settings, it would be beneficial to examine their dynamics in diverse social, economic, cultural, and political environments.Future research opportunities also lie in exploring the varied outcomes of green marketing orientation, encompassing commercial, environmental, and social benefits.
) H2: Green Innovation has a significantly negative influence on Purchase Intention Li et al. utilized the market orientation model proposed by Liu et al.
The tested PLS program model scheme is as follows: An indicator is declared to have convergent validity in a good category if the outer loading value is> 0.7.The following is the outer loding value of each indicator on the research variables: According to the research findings above, the Q-Square value is 0.412.This value signifies that 41.2% of the diversity in the research data can be explained by the research model, while the remaining 58.8% is attributed to other factors beyond the scope of this research model.Therefore, based on these calculations, it can be concluded that the research model exhibits a good level of goodness of fit.