Green Brand Products in Small and Medium Batik Industries with Pls-Sem Approach

*Naili Farida  -  Department of Business Administration, Faculty of Social and Political Sciences, Universitas Diponegoro, Indonesia
Apriatni Endang Prihartini  -  Department of Business Administration, Faculty of Social and Political Sciences, Universitas Diponegoro, Indonesia
Ngatno Ngatno  -  Department of Business Administration, Faculty of Social and Political Sciences, Universitas Diponegoro, Indonesia
Published: 23 Dec 2019.
Open Access
Citation Format:
Abstract
This study examines Regiocentric Image Capabilities and Market Penetration on Green
Products and the effect of Green Products on Marketing Performance. The sample in this study
were 58 entrepreneurs of Small and Medium Batik Industries, who used natural colouring. The
sampling technique used was purposive sampling, and the analysis technique used was PLS-
SEM. The study found that Regiocentric Image Capabilities and Market Penetration significantly
influence the Green Products, and it has a significant effect on Marketing Performance.
Moreover, Green Brand Image does not influence a significant increase in Marketing
Performance. These results indicated that Regiocentric Image Capabilities can enhance the
capability of green product innovation with environmentally friendly natural colouring. The
product is also supported by a broad market penetration capability. Furthermore, Green Brand
Image on batik colouring products has no significant effect on marketing performance. The focus
on green products appears so that the SMIs can increase marketing of environmentally friendly
batik products.
Keywords: Marketing Performance; Green Brand Products; Market Capabilities; Green Brand Image; Innovation

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