ECO-INNOVATION IN COASTAL SEAFOOD MSMES: SUSTAINABLE PROCESSING STRATEGIES AND INFORMATION TECHNOLOGY INTEGRATION TO PROMOTE THE CIRCULAR ECONOMY
DOI:
https://doi.org/10.32477/semnas.v4i1.1302Keywords:
Eco-Innovation, Coastal MSMEs, Sustainable Seafood Processing, Circular Economy, Digital Entrepreneurship.Abstract
This study examines the application of eco-innovation in micro, small, and medium enterprises (MSMEs) of seafood in coastal areas as a sustainable processing strategy integrated with information technology to encourage a circular economy. This sector has great potential in supporting the economic welfare of coastal communities, but faces challenges in the form of technological limitations, inefficiency of production processes, and low added value of products due to traditional processing practices. The purpose of this research is to analyze how the application of environmentally friendly innovation and digital transformation can improve business efficiency, competitiveness, and sustainability in the context of the circular economy. The research approach used is quantitative with a case study strategy on seafood processing MSMEs, using primary data obtained through questionnaires and analyzed with descriptive statistics. The results show that the adoption rate of eco-innovation is positively correlated with increased raw material efficiency, reduction of production waste, and improvement of product quality. Information technology integration, especially in supply chains and digital marketing, plays a catalyst in accelerating the implementation of sustainable innovation and expanding market access. This research provides a theoretical contribution to the development of a digital-based eco-innovation model in the maritime sector as well as a practical contribution to strengthening policies and strategies for empowering coastal MSMEs to realize an inclusive and sustainable circular economy.
References
Achmad, G. N., Yudaruddin, R., Nugroho, B. A., Fitrian, Z., Suharsono, S., Adi, A. S., . . . Fitriansyah, F. (2023). Government support, eco-regulation and eco-innovation adoption in SMEs: The mediating role of eco-environmental. Journal of Open Innovation: Technology, Market, Complexity, 9(4), 100158.
Awawdeh, A. E., Ananzeh, M., El-khateeb, A. I., & Aljumah, A. (2022). Role of green financing and corporate social responsibility (CSR) in technological innovation and corporate environmental performance: a COVID-19 perspective. China Finance Review International, 12(2), 297-316.
Bhatia, L., Jha, H., Sarkar, T., & Sarangi, P. K. (2023). Food waste utilization for reducing carbon footprints towards sustainable and cleaner environment: a review. International journal of environmental research public health, 20(3), 2318.
Chen, S.-H. (2016). The influencing factors of enterprise sustainable innovation: An empirical study. Sustainability 8(5), 425.
de Andrade Júnior, H., de Andrade, T. P., & Rosinha, A. P. (2020). Sustainable Leadership as a Vector of the Circular Economy. In Handbook of Research on Creating Sustainable Value in the Global Economy (pp. 165-180): IGI Global Scientific Publishing.
Dhewanto, W., Belgiawan, P. F., Hanifan, R., & Umbara, A. N. (2023). Strengthening entrepreneurial ecosystem to achieve sustainability through digitalization and innovation: A case of Indonesian MSMEs ecosystem. Paper presented at the Proceedings of the 3rd Asia pacific international conference on industrial engineering and operations management.
Doktoralina, C. M., Abdullah, M. A. F., Febrian, W. D., & Maulana, D. (2025). Empowering coastal SMEs: A digital transformation model to enhance competitiveness and sustainability. Calitatea, 26(206), 422-427.
Harunurrasyid, H., Gustriani, G., Mardalena, M., & Nida, R. (2024). The impact of digital transformation on financial inclusion: Evidence from MSMEs in Indonesia. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 12(4), 343-356.
Hubert, M.-H., & Le Texier, T. (2025). Environmental Impact of Digitalization. Retrieved from
Jalil, M. F., Ali, A., & Kamarulzaman, R. (2022). Does innovation capability improve SME performance in Malaysia? The mediating effect of technology adoption. The International Journal of Entrepreneurship Innovation, 23(4), 253-267.
Kafetzopoulos, D., Gianni, M., Samara, E., & Kilintzis, P. (2025). Eco-innovation and firms’ performance: The mediating role of eco-innovation strategy. Journal of the Knowledge Economy 16(1), 2341-2365.
Leitner, A., Wehrmeyer, W., & France, C. (2010). The impact of regulation and policy on radical eco‐innovation: The need for a new understanding. Management Research Review, 33(11), 1022-1041.
Liu, Y., & Song, P. (2023). Digital transformation and green innovation of energy enterprises. Sustainability, 15(9), 7703.
Lubis, N. W. (2022). Resource based view (RBV) in improving company strategic capacity. Research Horizon, 2(6), 587-596.
Mahmood, N., Zhao, Y., Lou, Q., & Geng, J. (2022). Role of environmental regulations and eco-innovation in energy structure transition for green growth: Evidence from OECD. Technological Forecasting Social Change, 183, 121890.
Masithoh, F. N., & Rohmah, M. (2024). Sustainable Eco-Digital Innovations for MSMEs: Bridging Technology and Environmental Responsibility. Paper presented at the Proceeding ICAMEKA: International Conference Accounting, Management & Economics Uniska.
Naude, W., Szirmai, A., & Goedhuys, M. (2011). Innovation and entrepreneurship in developing countries: UNU.
Pangarso, A., Sisilia, K., Setyorini, R., Peranginangin, Y., & Awirya, A. A. (2022). The long path to achieving green economy performance for micro small medium enterprise. Journal of Innovation Entrepreneurship, 11(1), 1-19.
Perdana, T. A., Purusa, N. A., Kurniawan, R., & Suryawijaya, T. W. E. (2025). E-Blue: Implementation of an Integrated Blue Economy Ecosystem to Increase Coastal MSMEs Competitiveness. Journal of Indonesian Economy Business, 40(2), 256–274-256–274.
Rehman, S. U., Kraus, S., Shah, S. A., Khanin, D., & Mahto, R. V. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological forecasting social change 163, 120481.
Rigamonti, L., Sterpi, I., & Grosso, M. (2016). Integrated municipal waste management systems: An indicator to assess their environmental and economic sustainability. Ecological indicators, 60, 1-7.
Sahoo, S., Kumar, A., & Upadhyay, A. (2023). How do green knowledge management and green technology innovation impact corporate environmental performance? Understanding the role of green knowledge acquisition. Business Strategy the Environment, 32(1), 551-569.
Sukri, N. K. A., Zulkiffli, S. N. A., Mat, N. H. N., Omar, K., Mawardi, M. K., & Zaidi, N. F. Z. (2023). An analysis of eco-innovation capabilities among small and medium enterprises in Malaysia. Administrative Sciences, 13(4), 113.
Triguero, A., Moreno-Mondéjar, L., & Davia, M. A. (2013). Drivers of different types of eco-innovation in European SMEs. Ecological economics, 92, 25-33.
Wang, J., Hu, S., & Zhang, Z. (2023). Does environmental regulation promote eco-innovation performance of manufacturing firms?—Empirical evidence from China. Energies, 16(6), 2899.
Wang, N., Zhang, S. J., & Wang, W. (2022). Impact of environmental innovation strategy on green competitiveness: Evidence from China. International journal of environmental research public health, 19(10), 5879.
Wilson, J., & Erika, E. (2025). Empowering Eco-Innovation Through Digitalization in Startup Enterprises. Startupreneur Business Digital, 4(2), 146-154.
Xiumei, X., Ruolan, J., Shahzad, U., & Xiao, F. (2023). Sustainable innovation in small and medium-sized enterprises: Environmental regulations and digitalization as catalyst. The Journal of Environment Development, 32(4), 413-443.
Xu, C., Sun, G., & Kong, T. (2024). The impact of digital transformation on enterprise green innovation. International Review of Economics Finance Research Letters, 90, 1-12.
Zhang, D., Rong, Z., & Ji, Q. (2019). Green innovation and firm performance: Evidence from listed companies in China. Resources, conservation recycling, 144, 48-55.
Zhao, S., Teng, L., Arkorful, V. E., & Hu, H. (2023). Impacts of digital government on regional eco-innovation: Moderating role of dual environmental regulations. Technological Forecasting Social Change, 196, 122842.
