The Pro-Environmental Producer Behavior on Food Small and Medium Enterprises in Malang, Indonesia

Abstract

Pro-environmental producer behavior is increasingly important to realize an environmentally friendly business. The research aimed to identify the knowledge, attitudes, religiosity, and behavior of the food small and medium enterprises (SME) producers towards the environment; and to analyze the influence on the SMEs’ performance. The research object was SMEs of “Tempe chips” in Malang City, East Java Province, Indonesia. The results show that the majority of producers already have knowledge of the green raw materials and production process, but only a few of them know about green packaging. The producers’ attitude supported the environmentally friendly production process, although it was still at a lower level than religiosity. The producers’ behavior is still less pro-environment in terms of raw materials usage, production process, and packaging. They have implemented water and energy saving, but have not been able to avoid plastic packaging. The SEM results showed that the producer’s attitude influences their behavior toward environment, meanwhile, religiosity negatively moderates the attitude in affecting producer behavior. The producer’s behavior positively influenced the SME’s performance. The recommendation given is to socialize the use of environmentally friendly packaging to sell at a premium price targeted to the middle to upper consumer segments.

The Importance of Green Consumer Behavior as an Environmental Concern in Fast Food Restaurants

“…Additionally, keeping things clean is considered an informal prayer and positively impacts society's social ethics and the environment (Agustina, 2021). Not surprisingly, religious encouragement influences a person's attitude toward environmental protection by encouraging them to buy organic foods (Relawati et al, 2020).…”

“…Foods with the least possible environmental impact will always be sought after by consumers concerned about environmental protection. One is eating organic foods (de Oliveira Sampaio & Gosling, 2014;Escobar-López et al, 2017) and avoiding packaged, environmentally-unfriendly meals and beverages (Clement et al, 2017;Eden, 2009;Relawati et al, 2020;.…”

“…Littering and deciding to purchase food in packaging that is not environmentally friendly are nevertheless frequent behaviors (Hafil, 2020;Setiawan, 2019). Since most packaged foods are made of plastic or other unfriendly materials, food packaging could cause environmental pollution (Relawati et al, 2020). Plastic has many benefits over other materials used to package food, including solid but lightweight, chemically stable (does not react with air, water, acid, or other chemicals), typically transparent, and low cost (Sucipta et al, 2017).…”

“…Numerous studies have been done in the past that examine environmentally-friendly customer behavior, for instance, the research on packaged food consumption by eco-conscious customers (Relawati et al, 2020). However, it has gained little attention from particular brands.…”

Analysis of the Use of Environmentally Friendly Raw Materials and Environmental Awareness on Purchasing Decisions and Consumer Loyalty in the Central Java Manufacturing Industry

“…Amidst growing concerns over climate change, pollution, and resource scarcity, there is a pressing need for manufacturing companies in Central Java to embrace sustainable practices. This involves using environmentally friendly raw materials in production processes, sourced from renewable or recycled sources, to reduce ecological footprints and mitigate negative impacts [12]. Consumer behavior is shifting towards ethical consumption and environmental consciousness, with a demand for eco-friendly products that align with sustainability values [7].…”