Corporate Governance and Organizational Behavior Review / Volume 5, Issue 2, 2021

APPLICATION OF QUADRUPLE
BOTTOM APPROACH ON THE
ADOPTION OF ECO-DESIGN
Ang Swat Lin Lindawati *, Bambang Leo Handoko *, Mohamad
Heykal **
* Corresponding author, Accounting Department, School of Accounting, Bina Nusantara University, Jakarta, Indonesia
Contact details: Accounting Department, School of Accounting, Bina Nusantara University, Jakarta, Indonesia, 11480

Abstract
How to cite this paper: Lindawati, One of the key drivers of the Indonesian economy is SMEs.
ASL., Handoko, B.L., & Heykal, M (2023). How especially in overcoming the crisis caused by Covid-19. However,
Quadruple Bottom Line Impact SMEs
Intention to Adopt Eco-design. Corporate SMEs also need a competitive advantage to be able to compete
Governance and Organizational Behavior with larger companies. One of the competitive advantages can be
Review, 5(2), 8–16. obtained through innovation in eco-design (Vihma and Moora,
https://doi.org/10.22495/cgobrv5i2p1
2020). Our study examines the factors which influence SMEs'
Copyright © 2022 The Authors intention to adopt eco-design. The quadruple bottom line method
forms the foundation for these elements (Simons et al., 2020). It is
This work is licensed under a Creative the evolution of triple bottom line with additional factor of
Commons Attribution 4.0 International
License (CC BY 4.0). purpose, beside three existing factors: people, planet and profit. In
https://creativecommons.org/licenses/by/ addition, using the theoretical framework of planned behavior and
4.0/ social cognitive theory, we also investigate the variables that affect
ISSN Online: 2521-1889 purpose. In our work, structural equation modeling partial least
ISSN Print: 2521-1870 squares is used as a quantitative method. We use a questionnaire
to gather primary data. We use the SMART PLS 3 data processing
Received: 04.06.2021
program and select SMEs entrepreneurs as our respondents.
Accepted: 03.09.2021
According to our findings, attitude and self-efficacy significantly
JEL Classification: J16, M41, G34 influenced purpose. People, planet and purpose influence SMEs'
DOI: 10.22495/cgobrv5i2p1 intention to adopt eco-design.

Keywords: Quadruple bottom line, SMEs, Intention, eco-design,

sustainability, purpose

Authors’ individual contribution: Conceptualization — S.A. and M.A.;

Methodology — S.A. and M.A.; Software — S.A.; Validation — S.A.;
Formal Analysis — S.A.; Investigation — A.A. and M.A.; Resources —
A.A.; Data Curation — S.A.; Writing — Original Draft — M.A.;
Writing — Review & Editing — M.A.; Visualization — M.A.;
Supervision — S.A.; Project Administration — S.A.

Declaration of conflicting interests: The Authors declare that there is no

conflict of interest.

1. INTRODUCTION of micro, small, and medium-sized businesses is one

reason why the wheels of the Indonesian economy
The ongoing global disaster of the Covid-19 might start to turn up.
pandemic has succeeded in slowing down the wheels The growth of the SMEs sector has the potential
of the Indonesian economy. In fact, losses were to influence and hasten Indonesia's economic
incurred across several commercial sectors, recovery. As is well known, this industry has evolved
particularly in the early stages of the epidemic. In into the foundation of the nation. The Ministry of
actuality, many are compelled to close their doors. Cooperatives and SMEs estimates that by 2021, there
There is, however, always a chance amid adversity. In would be 64.19 million SMEs operating in Indonesia,
reality, the innovation that fuels activity in the sector contributing 61.97 percent of the country's GDP, or

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 Corporate Governance and Organizational Behavior Review / Volume 5, Issue 2, 2021

IDR 8.6 trillion. (Hartono and Ardini, 2022). The of planned behavior and social cognition can have an
capacity of the SMEs business sector to absorb 97 impact on small and medium businesses' intentions
percent of the workforce and integrate investment by to include eco-design into their operations. Our
60.4% demonstrates its contribution to the research result hopefully will empower the SMEs in
improvement of Indonesia's economy. There are order to enhance their competitiveness.
many SME business people and they are spread out in The structure of this paper is as follows: section
urban, rural, and remote areas. SMEs must have 1 introduction to the phenomena of our topic. Section
quality and creativity in order to open up job 2 review the literature and preliminaries studies.
opportunities and increase income for SMEs business Section 3 explain methodology used to conduct data
actors. analytics. Section 4 provide research data analytics
The fact is that in the field, many SMEs are result and discussion. Section 5 contains conclusion
unable to compete with big entrepreneurs and and suggestion for further research
international importers. SMEs assess that various
agreements made by the government, from the 2. LITERATURE REVIEW
ASEAN Economic Community (MEA) to free trade 2.1. Sustainability Theory
agreements/FTAs plus digital markets through e- Sustainability theory was first put forward by
commerce have made them unable to compete (Meadows et al., 1972) which explains that society's
(Alexandri and Anjani, 2014). Domestic products are efforts to prioritize social responses to environmental
dominated by imports, imported goods flood and economic problems. The demands of both the
Indonesia with low prices and good quality. present generation and those to come should be met
SMEs must have a competitive advantage to be by this social reaction. Currently, the idea of
able to compete and survive. Employing an eco- sustainability is expanding and being used in relation
design strategy is one way to create a competitive to business sustainability (Artiach et al., 2010).
edge. In order to produce a hospitable and (Mustapha, Zulkifli and Awang, 2020) discusses the
sustainable environment, eco design stresses the use backdrop of corporate sustainability as an investment
of recycled materials and uses as little raw material and business strategy that may balance the
as possible. (Vihma and Moora, 2020). In order to requirements of current and future stakeholders
produce a hospitable and sustainable environment, using a balanced scorecard to enhance company
eco design stresses the use of recycled materials and processes. By achieving a balance between the
uses as little raw material as possible (Monteiro et al., economic, social, and environmental aspects of firm
2019). Eco-design makes SMEs products innovative, performance, this idea highlights the interests of
unique and has added value and innovation, so that stakeholders.
they can compete with imported products, and SMEs The Triple Bottom Line (TBL) is typically used to
able to survive. assess corporate sustainability; this idea was
The eco-design concept is pro-nature, pro-life, established by (Jeurissen and Elkington, 2000). TBL
pro-togetherness, flexible, adaptive, local organic has three different aspects: economic, social, and
material, and local skill/craftsmanship. Nature is environmental (Alhaddi, 2015) states that companies
designed regularly without anything wasted. If there can move towards sustainable development by
is waste, then the waste from nature will be useful for integrating TBL in their management strategy.
the continuation of the cycle (Zeng and Durif, 2020). (Hussain, Rigoni and Orij, 2018); (Hammer and Pivo,
2017) proves that TBL-focused organizations can
However, SMEs awareness about eco-design is still
increase a company's competitive advantage
lacking. SMEs don't require a high degree of
In its development, TBL is felt to be lacking, namely
education, allowing Indonesians with modest levels
there is no reason or impetus, why humans want to
of education to start their own businesses. But of
preserve the planet, respect other people in addition
course in terms of business knowledge and creativity
to pursuing profit. So to fill this gap, TBL evolved into
may be less than those with higher education. The the Fourth Bottom Line or better known as the
research gap in our research is how to increase the Quadruple Bottom Line (QBL) (Sachit and Tulchin,
awareness of SMEs to adopt eco-design? With the aid 2014). QBL offers tools for measuring, valuing, and
of the quadruple bottom line theory, we attempt to evaluating the contribution of culture, spirituality,
investigate the elements that influence SMEs' and religion to reporting. People, planet, profit, and
willingness to embrace eco-design. The triple bottom purpose are some ways to put this into words.
line technique has evolved into the quadruple bottom
line approach, which consists of: people, planet and 2.2. Performance Theory
profit. Then the three factors are added to the fourth Performance is the outcome of work that can be
factor, namely purpose. The uniqueness or difference completed by an individual or group of individuals
of our research with previous research is that we also within an organization, in accordance with their
examine the factors that drive the purpose. These respective rights and obligations, in an effort to
elements are combined with elements from the idea accomplish the objectives of the organization in
of planned behavior (Ajzen, 1985) , as well as social question legally, without breaking the law, and in line
cognitive theory (Bandura, 1991). Based on with morals and ethics. High skill levels, a willingness
preliminary research, it is suspected that these to work because he is compensated or rewarded in
factors are what move people to do a good job. accordance with the agreement, and aspirations for a
Variables of attitude, subjective norm, and perceived brighter future are all indicators of an employee's
behavior control are taken from the theory of performance being good. It is likely that the
planned behavior, as well as from social cognitive company's performance (corporate performance) will
theory, self-efficacy variables are used. be strong if the employee's performance (individual
We conducted this research because of the performance) is good. (Richards et al., 2019). Having
pressing need for solutions to the challenge of how to high employee performance is crucial to meet
provide SMEs a competitive advantage. This study is corporate goals. Employee performance can be said
being carried out in Indonesia's capital city of Jakarta. to be good if employees can complete their duties
We want to examine whether the factors in the theory effectively and efficiently. If a certain goal can finally

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be achieved, it can be said that the activity is effective. social conventions also play a role in determining
It is said to be efficient if it is satisfactory as a driver intention. However, perceived behavioral control to
to achieve goals, regardless of whether it is effective have significance for predicting SMEs behavior, either
or not (Hö risch, Schaltegger and Freeman, 2020). directly or indirectly. The interaction between the
Employee performance can be seen with the resulting three factors—attitudes, subjective norms, and
productivity. There are several factors that can affect perceived behavior control—becomes an indicator of
employee productivity, namely: training, workers' interest, which in turn determines whether or not the
physical and mental capabilities, and the dynamic targeted activity will be carried out.
between superiors and subordinates (Djibran, 2020). According to (Fang et al., 2017), The following
Employee productivity is important for companies, elements make up the theory of planned behavior :
because increasing employee productivity means 1. Attitudes. The initial component of conduct is
employee performance also increases and company regarded to be attitude. Positive or negative attitudes
performance automatically increases. To measure can influence how someone behaves. Behavioural
work productivity, an indicator is needed as follows: beliefs are trust or beliefs. When a person favorably
ability, increasing the results achieved, morale, self- assesses a behavior, they will intend to exhibit it.
development, quality, and efficiency (Daniel, 2019). Individual perceptions about the effects of engaging
This is in line with QBL, where several factors in QBL in an action determine attitude (behavioral beliefs),
namely people, profit and spirituality exist in this are weighted in accordance with the findings of the
performance theory. The performance of employees assessment of the effects (outcome evaluation). These
who are people who drive and strive for attitudes, which are linked to subjective standards
organizational success, they have a spiritual life and a sense of behavioral control, are thought to have
which is the reason they want to do something, even a direct impact on behavior.
working and having a good performance is also 2. Subjective Norms. Subjective norms are
considered as a worship. thought to be a result of a person's agreement or
disagreement with certain views on how to behave.
2.3. Eco-design Trust that is part of subjective norms (normative
Eco-design is a design concept with environmental beliefs). If a person believes that other people are
friendly aspects in mind. Currently, environmentally significant and that he should have done something,
friendly designs are attracting public attention, the he will plan to act in that way.
reasons range from global warming, rising energy 3. Perceived Behavior Control. When there are
costs, to concerns about our limited water supply no barriers or anything to demonstrate a behavior,
(Monteiro et al., 2019). one has total control. On the other hand, there may be
Eco-design is basically not just for savings and trends zero chance of regulating a behavior due to lack of
that are momentary in nature, but the thought of opportunity, opportunity, money, or expertise.
reducing the burden of nature due to human activities Perceived The degree to which a person believes that
or lifestyles. Eco-design is acceptance of nature a behavior is either under his control or not is
without the distance to complement each other as referred to as behavioral control. Despite being
well as culture and traditions that coexist with nature optimistic and assuming that other people who
(Micheaux and Aggeri, 2021). Eco-design is pro- matter to him will concur, people tend not to have
nature, pro-life, pro-togetherness, flexible, adaptive, strong intentions to exhibit a specific behavior when
local organic and local material skills/craftsmanship. given the chance to do so. When perceptions of a
Pro-nature is in harmony with climate, wind person's real control and control over a behavior are
direction, water flow direction, and so on. Pro-life is in sync, a direct connection between perceived
concerned with continuity for togetherness. behavioral control and conduct is anticipated to
Flexibility is being ready to change the atmosphere. emerge.
Meanwhile, adaptive is adjusting to function. Local
organic and local skills are using local materials with 2.5. Social Cognitive Theory
local skills. Eco-design is also called local wisdom This theory is originally from (Bandura, 1991). The
because it is a continuous learning process (Syabana core idea behind this theory is that human beings
and Park, 2020). pick up modeling skills through observation and
Eco-design is a development of sustainable design imitation, which they may subsequently utilize while
which is a broad ideology that considers social, acting or behaving. Humans use their ability to think,
economic, and environmental implications. This symbolize, and anticipate to react (outcome reaction).
concept optimizes design by reducing negative These presumptions serve as the foundation for this
impacts and improving quality of life without idea:
depleting natural resources. The main goal of 1. Consider people inherently—not as good or
sustainable design is not to build structures, but to bad, but as the product of experience with the
build the future (Burch and Di Bella, 2021). Product capacity for any form of conduct.
design with consideration of the influence on the 2. People have the capacity to understand and
environment during the composting process or life regulate their actions.
cycle is one example of how eco design is used in the 3. Humans may learn new behaviors.
commercial sector. 4. People can affect other people's conduct
because other people can affect how they act.
2.4. Theory of Planned Behavior Bandura offers four key components to his
In order to overcome difficulties that are not entirely explanation of this theory: reciprocal determinism,
under the control of a person who is not yet fully self-regulation, self-efficacy, and observational
versed in theory reasoned action, theory of planned learning (modeling).
behavior is a development of theory of reasoned
action. (Ajzen, 1991). The behavioral intention
element still forms the basis of the Theory of Planned 2.6. Effect of Planned Behavior on Purpose
Behavior, but other factors—such as perceptions of (Stepchenkova and Park, 2021) asserts that attitude
behavior control—as well as subjective attitudes and is a measure of attachment, both positive and

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negative, toward psychologically significant items, enable or inhibit someone from engaging in an
including symbols, phrases, slogans, individuals, activity is known as perceived behavior control. The
institutions, ideals, and ideas. (Abulrub, Yin and way that a person perceives their ability to manage
Williams, 2012), said that competent businesspeople their behavior is influenced by both their prior
are individuals who possess the information, abilities, experiences and their perceptions of how difficult or
and personal qualities—such as attitudes, motives, simple an activity is to do. Then, knowledge gleaned
personal beliefs, and behaviors—necessary to carry from others, such as from the experiences of well-
out tasks or activities. This remark implies that a known persons like relatives, lovers, and friends,
person in the commercial or working environment might impact an individual's conduct. (Sparks, Ajzen
needs more than just education. Skills must be and Hall-box, 2002) illustrates how a person's
combined with knowledge. These abilities can take conduct is not just under his own control, but also
the shape of managerial skills, conceptual skills, depends on other factors, such as the availability of
comprehension, relational and communication resources, opportunities, and even certain abilities. A
abilities, problem-solving methods and behaviors, person's thoughts about how simple it is for them to
time management and usage abilities, and other display a behavior are represented by their
specialized technical abilities. Being knowledgeable perception of behavioral control. When individuals
and skilled alone is insufficient. Someone who is in believe that they lack source or not have the
the business world or the world of work of course opportunity to exhibit a behavior, (behavior control
must also have honesty, be responsible, keep low) the individual will not have a strong intention to
promises, be disciplined, obey the law, helpful, show behavior (van Nes and Cramer, 2005).
committed and respectful, and the pursuit of Research conducted (Simons et al., 2020) by
achievement. describing how corporate social responsibility in
Preliminary research by (Vamvaka et al., 2020) green office buildings influences behavior control and
highlights the importance of emotions in the purpose. Another study from (Mbebeb, 2012) found
entrepreneurial process by stating that emotional that the purpose of an entrepreneur wanting to
attitude and perceived self-efficacy are by far the best become ecological entrepreneurship stems from the
determinants of intention. Where entrepreneurs seek entrepreneurial attitudes and actions and behavioral
to experiment with new ideas to boost innovation, control they have. Research on purpose in life
such as eco-design. From another research (Sia and conducted by (Ishida and Okada, 2011) explains that
Jose, 2019) asserts that an entrepreneur's aim to behavior and control affect purpose. Purpose in life is
build environmentally friendly homes is significantly the fourth factor forming the quadruple bottom line. ,
impacted by attitude. Using this viewpoint as a research from (White and Hyde, 2012) states
foundation, we propose the following hypothesis: otherwise that behavioral control has no effect. Based
H1: Attitude has significant effect on purpose on the theory and differences of opinion from some of
these preliminary studies, we formulate our
Subjective norms are The desire to carry out or hypothesis as follows:
refrain from carrying out the activity under H3: Perceived behavior control has a significant effect
consideration will be influenced by a person's on purpose
perspective or view of the beliefs of others. The
degree to which the pertinent person or individual 2.7. Effect of Self-Efficacy on Purpose
supports or does not support the execution of a given Self-efficacy is the belief in one's capacity to perform
conduct is referred to as the subjectivity of the norm. successfully under particular conditions. Self-efficacy
When measuring subjective norms in research, it is is a positive perspective on our abilities and
common to ask participants how much they believe effectiveness. In short, self-efficacy is the extent to
their closest relatives, friends, or coworkers would which we are able to achieve something. Self-efficacy
encourage them to pursue entrepreneurial grows from the successes that have been done.
endeavors, such as picking eco-design as a new Success is also included in the purpose that someone
invention. wants to achieve. There are two components in self-
Usually, Individuals tend to experience social efficacy, namely:
pressure to engage in conduct the more they believe 1. Efficacy expectations: belief that he can do it or
their social referents support them in doing so, and not.
vice versa, the more they believe their social referents 2. Outcome expectations: the individual's
disapprove of their behavior, the more they feel estimate that a certain outcome will arise and
pressure not to engage in that behavior. knowledge of what to do
Study by (Liñ á n and Chen, 2009) stated that Self-efficacy is very influential in a person's behavior.
subjective norm has a strong impact on Every behavior, whether at work, academically,
entrepreneurial intention. Another study by (Wan, recreationally, or socially, is influenced by self-
Qiping and Choi, 2017) discovered that people's efficacy. Beliefs in self-efficacy affect the actions
interest in recycling was significantly influenced by chosen, the effort given to certain activities, the
the subjective norm. Recycling is an important persistence to overcome obstacles & failures, and the
element in sustainability which is also the basis of ability to adapt after experiencing failure.
eco-design. Similar studies also get the same results, Research in (Efendi, 2013) discovered that self-
namely (White and Hyde, 2012) stating that efficacy influences life objectives, which include well-
subjective norms affect recycling behavior. On the being, get satisfaction and comfort in life. Another
basis of the theory and early research, we construct research by (Kreitler, Peleg and Ehrenfeld, 2007);
the following second hypothesis: (Tarhini, Hone and Liu, 2015) found that self-efficacy
H2: Subjective norm has significance effect on has impact on quality of work and quality of life.
purpose Based on theory and finding from previous study, We
put up our theory as follows :
Perceived behavior control is an individual's H4: Self-efficacy has a significant effect on purpose
perception regarding the control that the individual
has with respect to certain behaviors. A notion 2.8. Effect of Quadruple Bottom Line on SMEs
regarding the existence or absence of elements that

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Adoption of Eco-design The term "eco-design" is a synonym for "green

People are suspected to be one of the main factors design," "design for the environment," "sustainable
that make SMEs want to adopt eco-design. As we all design," etc (Choi and Hwang, 2015). (Green et al.,
know that people are one of the factors in the Triple 2012) demonstrate the connection between greater
Bottom Line concept which later evolved into a financial and environmental profits and the use of
quadruple bottom line. That's why we need a green supply chain management. The technique of
sustainable design movement, namely the ability to using eco-design is very useful in accordance with the
do something continuously so that the existing research of (Choi and Hwang, 2015) which states that
quality human resources are always available and eco design is recognized as a cutting-edge tool to
strive not to be damaged or exhausted. This can be increase company profits and performance. The
done by paying attention to how to maintain and innovations contained in eco-design are not only able
improve the quality of human life by having the to improve the image or good name of the company,
ability to maintain ecosystems. It can be said that at but also lead to the development of greater sales
this time, a sustainable design is urgently needed, (Choi and Hwang, 2015).
namely a design that has the ability to carry out its There are several advantages of eco-design which are
functions continuously, increasing the standard of indirectly related to lower production costs (Choi and
living of the people or users. An example of Hwang, 2015). Based on this description, It is clear
sustainability for people is how a design affects and that combining eco design with green supply chain
brings benefits to workers, laborers, and society. For management helps businesses improve their
example, by providing fair wages to workers environmental management skills and results in
(community), humane-working system, and improved performance. The performance of the
empowerment by teaching skills, and others. organization improves with greater eco design use.
Research conducted by (Roy, Caird and Potter, 2007) The following hypothesis is created because,
found that eco-design must be people-centered. They according to the findings of prior study, eco design
conduct research on people and sustainability in has an impact on business performance and
relation to eco-design. Similar result found in (Zeng profitability.
and Durif, 2019), successful transformation of eco- H7: Profit has a significant effect on SMEs intention to
design depends on people's response. Research by adopt of eco-design
(Sarkar et al., 2019) it was said that consumers strive
to use items and services to fulfill a variety of A new component has been introduced to the
requirements. Products should benefit consumers or quadruple bottom line: purpose. In the past, the triple
society as a whole. Therefore, a sustainable product is bottom line, there were three elements, namely:
one that benefits consumers or provides value. In people, planet and profit. Life purpose is very
light of the aforementioned theory and earlier important to find because it is the main motivation in
research, we construct the following hypothesis: doing something well to achieve our goals. In
H5: People has a significance effect on SMEs intention addition, life purpose can guide us to make life
to adopt of eco-design decisions, influencing behavior and even creating
meaning in life, work and in business. Purpose makes
Planet refers to the environment. We know that the people strong. For example, in carrying out eco-
major environmental issues facing the world, namely: design, if from the beginning you have planned to
climate change, depletion of the ozone layer, pollution make products that are environmentally friendly and
of land and water surfaces, pollution and air quality can help raise living standards, then this purpose will
degradation, waste management (garbage, waste), be a strong driving force so that the eco-design is
urban issues, declining groundwater resources, realized.
coastal zones and seawater, risk management (both Previous research from (Bovea and Gallardo, 2006)
human-caused and disaster), and reduced soil surface stated that goal and scope definition are the
quality and biodiversity (Carroll, Brown and determining factors that drive eco-design. Goal and
Buchholtz, 2018). scope are part of the purpose. Similarly, research
As this new century unfolds, two developments that (Navajas, Uriarte and Gandía, 2017) also talks about
will have a profound impact on humanity, namely the importance of goal and scope definition plus
global capitalism and eco-design for sustainable objectives. According to our understanding of and
societies will be set on colliding paths. Therefore, a assessment of the prior research, we make the
balanced understanding and concrete effort is needed following hypothesis:
between the two. Designers or planners are H8: Purpose has significance effect on SMEs intention
responsible for almost all product, equipment, and to adopt of eco-design
environmental faults.
Previous study from (Padmalalitha and Rajeswari, 3. RESEARCH METHODOLOGY
2020) claimed that environmental factors lead to the 3.1. Research Type and Sample Size
company adopting green practices, this opinion is Researchers used quantitative methods. According
strengthened by (Swami and Shah, 2011) which to (Creswell, 2014) Quantitative research, which is
states that Corporate environmental drivers intensify an experimental style of study, demands
normative, coercive, and mimetic forces that force researchers to explain how one variable impacts
businesses to embrace green practices. A similar other factors. According to (Roscoe, 1975) The
related study by (Padmalalitha and Rajeswari, 2020) minimal sample size for a multivariate research is
examines environmental drivers for green supply 10 times the number of variables being
chain practice. Another study by (Saumi and Zolkepli, investigated. There are 9 (nine) variables in this
2017) found that this factor is able to create value study, hence at least 90 samples are required. The
added for customers in tourism business. Based on researcher utilized a sample of 200 respondents for
above theory and previous study, we formulate our this study. When viewed from the criteria above,
hypothesis as follow: this study has met one of the categories of sample
H6: Planet has significance effect on SMEs intention to size suggestions expressed by (Roscoe, 1975).
adopt of eco-design

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3.2. Data Type and Sampling Techniques Likert scale is used to create instruments that
Primary data sources were employed to compile gauge how one or more people or groups feel about
the study's data. While the questionnaire method of a possible issue. In this study, the researcher made
data collecting is employed in this study and will be 5 choices that the respondent could choose to
thereafter provided to respondents. The answer the questionnaire that the researcher
questionnaires are distributed to SMEs made. The Likert scale ranges from 1 to 5, with 1
entrepreneurs utilizing a Google form that is being strongly disagree and 5 being strongly agree.
carried out online.
The sample strategy employed in this study 3.3. Operation of Variables
involves using a straightforward random sampling We create operationalization variables for the
methodology with a number of criteria, such as: latent variables in our research in order to make
SMEs that has been permanent, SMEs that have a them quantifiable.
business license, at least a proprietary company. Table 1 below shows the operationalization of
Researchers employed a Likert scale in this variables :
investigation. As stated by (Sugiyono, 2011) The
Table 1 Operation of Variable
Variable Indicators Reference
SMEs intention to adopt 1. Significantly reduced overall operational costs (Melynk, Sroufe and Calantone,
eco-design 2. Significantly reduced lead times 2003)
3. Significantly improved product quality
4. Helped your company design/develop better
products
5. Significantly reduced waste within the production
process
Attitude 1. Confidence (Kuo et al., 2018)
2. Consequence evaluation
Subjective Norm 1. Normative belief (Kuo et al., 2018)
2. Motivation
Perceived Behavior Control 1. Control belief over an action (Kuo et al., 2018)
2. Perceived ease of an attribute
Self-efficacy 1. Mastery experience (Bacanli, 2006)
2. Vicarious learning
3. Verbal persuasion
4. Psychological states
People 1. Improvement in overall stakeholder welfare or (Paulraj, 2011)
betterment
2. Improvement in community health and safety
3. Reduction in environmental impacts and risks to
general public
4. Improvement in occupational health and safety of
employees
5. Improved awareness and protection of the claims
and rights of people in community
Planet 1. Reduction in air emission (Paulraj, 2011)
2. Reduction in waste (water and/or solid)
3. Decrease in consumption of
hazardous/harmful/toxic materials
4. Decrease in frequency for environmental accidents
5. Increase in energy saved due to conservation and
efficiency improvements
Profit 1. Reduction in air emission (Paulraj, 2011)
2. Reduction in waste (water and/or solid)
3. Decrease in consumption of
hazardous/harmful/toxic materials
4. Decrease in frequency for environmental accidents
5. Increase in energy saved due to conservation and
efficiency improvements
Purpose 1. Value creation (Pizzirani et al., 2018),
2. Cultural continuity and development of cultural (Budsaratragoon and
well-being Jitmaneeroj, 2019)
3. Spiritual life
4. Faith and relationship with God
based on the responses provided by the 200 respondents
that completed the survey using the Google form medium.
4. RESEARCH RESULT AND DISCUSSION The distribution of respondents to our survey is described
4.1. Identity of Respondents in the information below. Our respondent data is attached
in table 2

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Table 2 Identity of Respondents

Gender: Amount: Experience:
Male 84 Under 5 years 56
Female 116 5 – 10 years 66
11-15 years 31
More than 15 years 47

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Industry: Education:
Service 55 High School 92
Trading 113 Diploma 41
Manufacture 32 Bachelor/Master 67
considers the outer loadings indicator and the
Average Variance Extracted (AVE). The high outer
Based on table 2, it can be concluded that the majority
loadings on the construct show the related indicators
of our respondents are female, with slightly more
have a lot in common, which is captured by the
numbers than males. The SMEs business field is in the
construct (Ghozali and Hengky, 2015). At a minimum,
trading field, with 5-10 years of experience, and has a
the outer loadings of all indicators should be
high school education. It can be said that SMEs that
statistically significant. The default outer loadings
are the object of research are SMEs with sufficient
should be 0.7 or greater, as a general rule of thumb.
experience.
The construct often accounts for more than half of the
4.2. Convergent Validity indicator variation when the AVE value is 0.50 or
The degree to which a measure is positively linked higher. An AVE of less than 0.50, however, denotes
with other measures of the same construct is known that, on average, more variance remains in the item
as convergent validity. To evaluate the convergent error than in the variance described by the construct.
validity of the reflective construct, the researcher Convergent validity is presented in table 3
Table 3 Outer Loading
Indicator Outer Loading Indicator Outer Loading Indicator Outer Loading

ATT.1 0.995 PE.3 0.949 PR.5 0.944

ATT.2 0.993 PE.4 0.896 PU.1 0.845

SN.1 0.997 PE.5 0.812 PU.2 0.930

SN.2 0.997 PL.1 0.813 PU.3 0.950

PBC.1 0.960 PL.2 0.834 PU.4 0.845

PBC.2 0.970 PL.3 0.890 INT.1 0.868

SE.1 0.823 PL.4 0.865 INT.2 0.951

SE.2 0.919 PL.5 0.856 INT.3 0.949

SE.3 0.928 PR.1 0.980 INT.4 0.896

SE.4 0.864 PR.2 0.988 INT.5 0.812

PE.1 0.868 PR.3 0.990

PE.2 0.951 PR.4 0.980

Table 3's data allow for the conclusion that every convergent validity test. In addition to using outer
variable's indicators all have values higher than 0.7, loading, we also use the AVE value. Our AVE value is
which means that all of them have passed the presented in table 4
Table 4 Average Variance Extracted
Variable AVE

Attitude 0.988

Subjective Norm 0.994

Perceived Behavior Control 0.932

Self-efficacy 0.783

People 0.813

Planet 0.726

Profit 0.954

Purpose 0.821

SMEs Intention to Adopt Eco-design 0.804

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The next validity test is discriminant validity using

the Fornell-Larcker Criterion which shows variable
Table 4 shows that every variable in this study has an
validity when a variable has a greater correlation
AVE value greater than 0.5, indicating that every
than with correlations between different variables
variable has passed the convergent validity test.
(Ghozali and Hengky, 2015). The result of
discriminant validity test is presented in table 5.
4.3. Discriminant Validity
Table 5 Fornell-Larcker Criterion
ATT PE PBC PL PR PU INT SE
ATT 0.994
PE 0.327 0.901
PBC 0.895 0.297 0.965
PL 0.480 0.683 0.442 0.852
PR 0.504 0.250 0.498 0.268 0.977
PU 0.220 0.312 0.263 0.218 0.682 0.906
INT 0.091 0.445 0.082 0.326 0.400 0.610 0.897
SE 0.504 0.551 0.628 0.406 0.353 0.534 0.199 0.885
SN 0.984 0.320 0.902 0.479 0.500 0.211 0.083 0.499 0.997
concept. If a respondent's response to a question
remains consistently/stable throughout time, a
Table 5 demonstrates that the association construct
questionnaire is considered to be dependable or
has a greater correlation value than the other
reliable. Similarly, in this study, which also expects
constructs, indicating that this study model has
the consistency of the dimensions and research
strong discriminant validity.
variables so that they can be continued to the next
test stage. If the composite reliability score is 0.7 and
4.4. Reliability Test Cronbach's Alpha is more than 0.6, data dependability
can be deemed dependable. If it is below this value, it
(Ghozali and Hengky, 2015) is a means of measuring is considered poor (Sekaran and Bougie, 2016). In
a survey that serves as a predictor of a variable or Table 6 we present the reliability test.
Table 6 Cronbach’s Alpha and Composite Reliability
Variable Cronbach’s Alpha Composite Reliability

Attitude 0.988 0.994

People 0.941 0.956

Perceived Behavior Control 0.927 0.965

Planet 0.907 0.930

Profit 0.988 0.990

Purpose 0.928 0.948

SMEs Intention to Adopt Eco-design 0.941 0.953

Self-efficacy 0.907 0.935

Subjective Norm 0.994 0.997

obtained by accounting for the difference in R2 when

a certain construct is dropped from the research
Based on table 6 demonstrates that each variable has
model. The results of f2 can be 0.02, 0.15, and 0.35,
a Cronbach's Alpha value more than 0.6 and a
each of which denotes a little, medium, and large
Composite Reliability value greater than 0.7. All of the
effect (Sawilowsky, 2009). The dependent variable's
study's variables may be inferred to be trustworthy.
independent variables' respective f2 values are listed
below.
4.5. Effect Size Test
Effect size (f2) is a metric used to quantify the
magnitude of the external latent variable's
contribution to the endogenous latent variable's
latent variable R2. (Wong, 2013). The value of f2 is

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Table 7 Effect Size Test

Exogenous Variable Endogenous Variable Effect Size (f2)

Attitude Purpose 0.021

Perceived Behavior Control Purpose 0.092

Subjective Norm Purpose 0.011

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Self-efficacy Purpose 0.314

People SMEs Intention to Adopt Eco-design 0.058

Planet SMEs Intention to Adopt Eco-design 0.024

Profit SMEs Intention to Adopt Eco-design 0.036

Purpose SMEs Intention to Adopt Eco-design 0.288

Another element that may be measured in the

structural model is redundancy (Q2) (inner model).
Table 7 displays the results of the effect size test.
Exogenous latent variables' predictive relevance to
According to Table 7, the factors Purpose and Self-
endogenous latent variables was tested using this
efficacy have a significant impact, whilst the other
technique (Hair et al., 2014). If the answer to Q2 is
variables have a negligible impact.
larger than 0, it means that the external latent
variable is relevant for predicting the endogenous
4.6. Predictive Relevant Test latent variable. We present the result of predictive
The test of predictive relevance or cross-validated relevance test in table 8.
Table 8 Predictive Relevance Test
Endogenous Variable Q2 (=1-SSE/SSO)

Purpose 0.226

SMEs Intention to Adopt Eco-design 0.305

Table 8's test results show that all variables' Q2 values have predictive significance, with Purpose's Q2 value
being 0.226 and Q2 of the SMEs Intention to Adopt Eco-design variable of 0.305. Thus, these results have met
the test requirements that exceed the measurement limit above 0.

4.7. Multicollinearity Test

In structural equation modeling, the Factors (VIF) value is less than 10, it is said to be
multicollinearity test determines whether or not multicollinearity-free. Table 9 displays the results
the model detects a strong or perfect connection of the multicollinearity test for this model. In Table
between exogenous components. A appropriate 9 we can conclude that no multicollinearity found
model is one that does not have problems with in this model, since all the construct each has
multicollinearity. If the model's Variance Inflation variance inflation factor less than 10.
Table 9 Multicollinearity Test
Exogenous Variable Endogenous Variable Inner Variance Inflation Factor Value

Attitude Purpose 2.531

Perceived Behavior Control Purpose 3.445

Subjective Norm Purpose 2.391

Self-efficacy Purpose 2.234

People SMEs Intention to Adopt Eco-design 3.228

Planet SMEs Intention to Adopt Eco-design 2.012

Profit SMEs Intention to Adopt Eco-design 2.212

Purpose SMEs Intention to Adopt Eco-design 2.056

perceived behavioral control, and attitude. The

4.8. Coefficient of Determination impact that People, Planet, Profit, and Purpose have
on SMEs' intentions to adopt eco-design is the second
This type of multivariate model has two coefficients coefficient of determination. Table 9 displays the
of determination. That represents the proportion of coefficient determination outcome.
self-efficacy toward purpose, subjective norm,
Table 10 Coefficient of Determination
Endogenous Variable R Square R Square Adjusted

Purpose 0.296 0.282

SMEs Intention to Adopt Eco-design 0.447 0.435

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The values of R Square and R Square Adjusted are 4.8. Structural Model and Hypothesis Testing
displayed in Table 10. We choose to utilize the Result
Adjusted R Square value because our model involves In this study, the statistical t-test was used to decide if
several variables. Therefore, it may be said that the made tentative hypothesis may be accepted or
attitude, perceived behavior control, subjective norm rejected. The t-test conditions are disregarded, but
and self-efficacy affect purpose by 28.2%, while the hypothesis is accepted if the t-statistic (t table) is
people, planet, profit and purpose can influence SMEs greater than 1.98, indicating that there is a significant
intention to adopt eco-design by 43.5%, Additional link. The rule is that if the t-statistic is less than 1.98,
elements not covered in this study have an impact on the hypothesis is rejected or does not have a
the remaining 56.5%, such as other factors outside significant relationship, and if it is greater than 1.98,
the quadruple bottom line. These factors include: the hypothesis is accepted or has a significant link.
knowledge of entrepreneurs, availability of capital, Table 10 displays the results of the hypothesis
government support and others testing.
Table 11 Hypothesis Testing
Hypothesis Path Coefficient T p-value Conclusion
Attitude Purpose 0.212 2.815 0.005 Accepted
Subjective Norm Purpose -0.120 0.337 0.736 Rejected
Perceived Behavior Control Purpose -0.206 1.463 0.144 Rejected
Self-efficacy Purpose 0.616 7.954 0.000 Accepted
People SMEs Intention to adopt eco-design 0.252 2.928 0.004 Accepted
Planet SMEs Intention to adopt eco-design 0.047 2.368 0.022 Accepted
Profit SMEs Intention to adopt eco-design -0.059 0.887 0.376 Rejected
Purpose  SMEs Intention to adopt eco-design 0.561 7.960 0.000 Accepted
adopt eco-design, and purpose to SMEs intention to
adopt eco-design. While the other three hypotheses,
Based on table 10, it can be seen that there are five
namely the effect of subjective norms on purpose,
hypotheses that have a significant effect, namely: the
perceived behavior control on purpose and profit on
influence of attitude towards purpose, self-efficacy
SMEs intention to adopt eco-design, have no
towards purpose, people towards SMEs intention to
significant effect. In figure 1 we present the structural
adopt eco-design, planet towards SMEs intention to
model and path coefficient result.

Figure 1 Structural Model and Path Coefficient

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because SMEs entrepreneurs in our research are not

4.9. Discussion profit-oriented but who try to use the eco-design
concept to create added value and unique selling
Table 10 demonstrates that attitude affects purpose. points for their business. There are also SMEs who
this is because attitude is an affective aspect that think that it is difficult to profit from eco-design, this
determines a person's actions, because the is similar to research findings (Paulson and Sundin,
willingness or willingness to act determines someone 2015).
to act according to the character of the attitude he
has. Confidence and the consequences of an action The ambition of SMEs to embrace eco-design is
create a person's purpose for doing something. This is significantly influenced by purpose. Purpose in this
in line with research (Xue, Bradley and Liang, 2011). study comes from spiritual values, beliefs, culture,
and relationship with God. These factors are proven
Subjective behavior norms and perceived behavioral to be able to increase the interest of SMEs to adopt
control have no discernible impact on intent. it is eco-design. SMEs entrepreneurs who have strong
suspected because purpose is not a normative belief, spiritual values, culture and beliefs are able to
but purpose is specific. It is the opposite with the increase their desire to adopt eco-design. Our
result from (Lewandowska and Matuszak-flejszman, findings support the findings of other research from
2015). In addition, the purpose is clearly controllable (Karamova et al., 2019) and (Chun, 2012).
so that it is no longer perceived but a certainty. The
findings of this study are at odds with those of earlier
investigations (White and Hyde, 2012), (Chiou, 1998). 5. IMPLICATION AND SUGGESTION
Self-efficacy has an effect on purpose, because with 5.1. Implication
self-efficacy, especially from past experience, a Attitude and self-efficacy affect purpose. Based on
person can better prepare future goal settings. This is these findings, we can imply that if small and
in line with research (Neuville, Frenay and Bourgeois, medium-sized businesses are invited to develop eco-
2007), (Hastings and West, 2011) and (Ritchie, designs, it is necessary to improve their attitude and
Cervone and Sharpe, 2021) which are stated in goals self-efficacy. Attitude can be increased with
and self-efficacy beliefs. awareness, namely by providing counseling and
People significantly influence whether SMEs plan to guidance on the importance of eco-design.
implement eco-design. This outcome is consistent Meanwhile, self-efficacy can be increased by using
with those attained by (Macdonald and She, 2015), experience. So it is necessary to involve these small
and also (Beard and Hartmann, 1997) which stated and medium-sized entrepreneurs in activities related
that the larger the amount of people involve will to eco-design. Either through activities initiated by
produce more various ideas. This is because the the government, educational institutions or by other
concept of eco-design is also made to pay attention to institutions.
and prosper people. Consider a small business where People, planet and purpose have significant influence
the welfare of its employees is still a priority. on SMEs intention to adopt eco-design. The
Continue to provide benefits such as health benefits, implication is that we should increase the awareness
holiday allowances and so on. of SMEs entrepreneurs regarding their concern for
The planet significantly influences whether or not the surrounding community, mutual prosperity
SMEs plan to adopt eco-design. These results support between employees and business owners. Then
the results obtained by previous researchers (Vallet concern about the preservation of nature, and also
and Eynard, 2012), (Knight and Jenkins, 2009). Planet strengthen their spiritual life to increase the purpose
is influential because the concept of eco-design is of life.
closely related to recycling, which aims to reduce
pollution and preserve the environment. So that SMEs 5.2. Suggestion
entrepreneur who cares about the environment will
be easier to accept and adopt the concept of eco- Our suggestion for further research in the future is
design than those who don't care about the that the next researcher can conduct research on
environment. similar topics, using different samples, with different
conditions. For example regarding the phenomenon
Profit in our study has no significant effect on SMEs of eco-design in other countries such as in Europe and
intention to adopt eco-design. This is contrary to the the US. so that it may be compared to our study and
previous preliminary research by (Pazoki and improve the assessment of the literature in the field
Samarghandi, 2020) and (Dace et al., 2014). This is of sustainability and eco-design.

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