This work is licensed under a Creative Commons Attribution 4.0 International License.
The Role of Green Innovation in Strengthening the Sustainability Performance of Digital Startups in Indonesia
Corresponding Author(s) : Lidya Agustine Senduk
Startupreneur Business Digital (SABDA Journal),
Vol. 5 No. 1 (2026): Startupreneur Business Digital (SABDA)
Abstract
The increasing awareness of environmental sustainability has encouraged many digital startups in Indonesia to adopt green innovation as a strategic approach to achieving long-term business resilience. This study aims to explore the role of green innovation in strengthening the sustainability performance of digital startups in Indonesia. Using a qualitative approach, the research gathers insights from interviews with startup founders and managers who have integrated eco-friendly practices into their business operations. The findings reveal that green innovation not only enhances operational efficiency and reduces environmental impact but also strengthens brand reputation and stakeholder trust. Furthermore, startups that embed sustainability principles into their core business models demonstrate greater adaptability to market changes and long-term competitiveness. This study contributes to the understanding of how environmental responsibility can coexist with business growth in the digital startup ecosystem. The implications highlight the need for policy support, technological collaboration, and education to foster green innovation in Indonesia’s startup landscape.
Keywords
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- I. Ratnamiasih, M. Ridwan, and B. Septiawan, “Factors influencing green human capital to improve green performance in indonesian start-up business,” Indonesian Journal of Sustainability Accounting and Management, vol. 6, no. 1, pp. 71–81, 2022.
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References
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P. A. Danarahmanto, I. Primiana, Y. Azis, and U. Kaltum, “The sustainable performance of the digital start-up company based on customer participation, innovation, and business model,” Business: Theory and Practice, vol. 21, no. 1, pp. 115–124, 2020.
L. Lisnawati, T. Aryati, and J. Gunawan, “Implementation of digital innovation on sustainability perfor- mance: The moderating role of green accounting in the industrial sector.” Eastern-European Journal of Enterprise Technologies, vol. 127, no. 13, 2024.
D. Prihadyanti and S. A. Aziz, “Indonesia toward sustainable agriculture do technology-based start-ups play a crucial role?” Business Strategy & Development, vol. 6, no. 2, pp. 140–157, 2023.
S. Megawati, H. Herdiansyah, A. Machmud, E. Antriyandari, and S. Sudirman, “Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from indonesia’s culinary smes,” Problems and Perspectives in Management, vol. 22, no. 4, pp. 368–381, 2024.
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F. Romadhon, A. Fitri, and I. W. Sari, “Green intellectual capital and sustainable performance: The role of green competitive advantage and green innovation,” Jurnal Reviu Akuntansi dan Keuangan, vol. 15, no. 1, 2025.
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O. Jayanagara and C. Lukita, “Evidence from sma students’ performance on the impact of physics education technology (phet) simulations,” International Transactions on Education Technology, vol. 1, no. 2, pp. 105–110, 2023.
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M. R. Anwar, M. Yusup, S. Millah, and S. Purnama, “The role of business incubators in developing local digital startups in indonesia,” Startupreneur Business Digital (SABDA Journal), vol. 1, no. 1, pp. 1–9, 2022.
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N. Setiawan, A. Rahmiati, and N. Soewarno, “The mediating role of digital technology in the relationship between green innovation and business performance: evidence from indonesia’s automotive industry,” International Journal of Innovation Science, pp. 1–17, 2025.
P. Hadi et al., “Factors contributing to sustainable growth performance in indonesian smes: The role of business incubators.” International Journal of Sustainable Development & Planning, vol. 18, no. 10, 2023.
Z. Zaharuddin, S. Wahyuningsih, A. Sutarman, and I. N. Hikam, “Understanding purposeful leadership in entrepreneurial contexts: A bibliometric analysis,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 2, pp. 213–230, 2024.
N. Kosasih, “Digital business model innovation and its impact on competitive advantage: Evidence from indonesian tech startups,” TechTalent & Business Review, vol. 1, no. 2, pp. 46–62, 2025.
L. K. Choi, N. Iftitah, and P. Angela, “Developing technopreneur skills to face future challenges,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 5, no. 2, pp. 127–135, 2024.
U. Rahardja, T. Hongsuchon, T. Hariguna, and A. Ruangkanjanases, “Understanding impact sustainable intention of s-commerce activities: The role of customer experiences, perceived value, and mediation of relationship quality,” Sustainability, vol. 13, no. 20, p. 11492, 2021.
P. Ordo˜nez de Pablos, “Digital innovation and green economy for more resilient and inclusive societies: understanding challenges ahead for the green growth,” pp. 461–466, 2023.
R. Herdian, M. S. Maarif, A. Sukmawati, and I. Hermadi, “The influence of digital talent development and green innovation and the use of green innovation as mediation to measure data centre performance.” Journal of Application Business & Management/Jurnal Aplikasi Bisnis dan Manajemen, vol. 11, no. 1, 2025.
A. Manawar, C. Lukita, and L. Meria, “The evolution of financial technology in indonesia,” Startupreneur Business Digital (SABDA Journal), vol. 2, no. 2, pp. 192–206, 2023.
R. Prijadi, A. S. Santoso, T. E. Balqiah, H. Jung, P. M. Desiana, and P. Wulandari, “Enhancing resilience in digital multi-sided platform start-ups: An exploration of entrepreneurial logic and open innovation strategies,” Entrepreneurial Business and Economics Review, vol. 12, no. 1, pp. 35–53, 2024.
D. N. Armariena, A. Nuryatin, T. Supriyanto, N. H. Setyaningsih, N. Nasib, and A. T. Z. Xuan, “Collaborative innovation ecosystems strengthening sustainable startup growth in the digital economy,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 2, pp. 184–192, 2025.
A. Gunawan, T. Yuniarsih, A. Sobandi, and S. A. Muhidin, “Digital leadership towards performance through mediation of organizational commitment to e-commerce in indonesia,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 1Sp, pp. 68–76, 2023.
Y. Yusup, A. Subyantoro, and R. H. K. HC, “Enhancing organizational performance through agility strategies: The mediating effects of green innovation and digital transformation,” Asian Management and Business Review, vol. 5, no. 2, pp. 349–365, 2025.
H. Safitri, M. H. R. Chakim, and A. Adiwijaya, “Strategy based technology-based startups to drive digital business growth,” Startupreneur Business Digital (SABDA Journal), vol. 2, no. 2, pp. 207–220, 2023.
P. A. Sunarya, U. Rahardja, S. C. Chen, Y.M. Lic, and M. Hardini, “Deciphering digital social dynamics: A comparative study of logistic regression and random forest in predicting e-commerce customer behavior,” Journal of Applied Data Sciences, vol. 5, no. 1, pp. 100–113, 2024.
G. A. P. W. Indrayani, I. A. S. P. Adi, and N. K. Iswarini, “The role of knowledge management and organizational learning in improving eco-innovation capabilities in technology start-up companies in indonesia.” International Journal of Multidisciplinary Research and Creative Innovation Ideas, vol. 1, no. 3, pp. 382–394, 2025.
F. Sutisna, N. Lutfiani, E. Anderson, D. Danang, and M. O. Syaidina, “E-commerce and digital marketing strategies: Their impact on startupreneur performance using pls-sem,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 6, no. 2, pp. 215–223, 2025.
R. Tobing and D. S. Nugroho, “Green human resource management on sustainable performance: The mediating role of digital innovation,” IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita, vol. 13, no. 2, pp. 313–332, 2024.
S. Santoso, J. Kauf, and N. C. Aristo, “The information system of name card sales based on digital marketing to improve creativepreneur on college e-commerce website,” Aptisi Transactions On Technopreneurship (ATT), vol. 1, no. 1, pp. 64–72, 2019.
E. Sungkawati and Y. O. O.-O. Uthman, “Adopting the blue green economy term to achieve sdgs in digital learning: Opportunities and challenges for indonesia,” Assyfa Learning Journal, vol. 2, no. 2, pp. 84–98, 2024.
S. Kosasi, C. Lukita, M. H. R. Chakim, A. Faturahman, and D. A. R. Kusumawardhani, “The influence of digital artificial intelligence technology on quality of life with a global perspective,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 3, pp. 240–250, 2023.
N. P. L. Santoso, R. Nurmala, and U. Rahardja, “Corporate leadership in the digital business era and its impact on economic development across global markets,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 6, no. 2, pp. 188–195, 2025.
I. Khong, “The circular economy’s performance and the impact of digitalization,” International Transactions on Education Technology, vol. 2, no. 1, pp. 18–23, 2023.
D. Iskandar, “Technology startups in indonesia: Riding the wave of innovation and investment,” Sinergi International Journal of Economics, vol. 2, no. 2, pp. 61–75, 2024.