Circular Economy Readiness Mediation Analysis on the Relationship between Green Innovation and Sustainable Development Goals (SDGs) in Indonesia
Keywords:
Mediation Analysis, Circular Economy, Readiness, Green Innovation, SDGsAbstract
Sustainable development in Indonesia is highly dependent on the effective implementation of green innovation as an effort to achieve the Sustainable Development Goals (SDGs). However, this success is greatly influenced by the readiness of the circular economy readiness which is the main mediator in the relationship between green innovation and the achievement of the SDGs. Challenges faced include the readiness of human resources and skills, lack of coordination and collaboration between stakeholders, and complexity in the measurement and mediation analysis of these factors. This study aims to analyze the mediating role of circular economy readiness in the relationship between green innovation and SDGs in Indonesia. The research method uses a quantitative approach with mediation analysis through the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique. Data was collected through a survey with a sample of 170 respondents representing various sectors related to green innovation and the circular economy in Indonesia. Data collection was carried out by distributing questionnaires directly and online, then analyzed using the PLS-SEM model to test the role of mediation in the concept model. The results show that circular economy readiness significantly mediates a positive relationship between green innovation and the achievement of the SDGs. This indicates that increasing the readiness of the circular economy can strengthen the contribution of green innovation in achieving sustainable development goals. The findings also highlight the importance of increasing human resource capacity and increasing synergy between stakeholders to overcome the complexity of measurement and analysis. The conclusion of this study emphasizes that the readiness of the circular economy is a key factor that supports the acceleration of the achievement of the SDGs through green innovation. The practical implication is the need for policies and programs that strengthen human resource capabilities and cross-sector collaboration to realize a sustainable green economy in Indonesia
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