Exploring the Role of Sustainable Management and Technological Innovation on SME Business Performance in Ponorogo, East Java

Abstrak

This study explores the role of sustainable management and technological innovation in influencing the
business performance of small and medium enterprises (SMEs) in Ponorogo, East Java. Using a quantitative
approach with multiple regression analysis, data were collected from 120 SME respondents through
structured questionnaires. The independent variables include sustainable management and technological
innovation, while business performance serves as the dependent variable. The results reveal that both
sustainable management and technological innovation have a significant positive influence on SME business
performance. The adoption of sustainable practices combined with technological innovation improves
operational efficiency, enhances market competitiveness, and strengthens corporate reputation. The
coefficient of determination (R² = 0.654) indicates that 65.4% of the variation in business performance is
explained by the two independent variables. These findings support the Resource-Based View theory,
emphasizing that sustainability and innovation are strategic capabilities essential for long-term business
success. The study provides practical implications for policymakers and SME stakeholders to promote
sustainable digital transformation aligned with the Sustainable Development Goals (SDGs).