Green HRM and Business Diversification as Drivers of Sustainable Performance in the Culinary Creative Industry MSMEs

This study is focused on creating a model for bsusiness sustainability for small and medium enterprises (SMEs) in the culinary creative industry, specifically in Surakarta City.The goal is to improve business performance in a sustainable way by using better business diversification strategies and applying Green Human Resource Management (Green HRM). The study uses a quantitative method with an explanatory design. Data was collected from 351 SMEs in the culinary sector through surveys, selected using purposeful sampling. The data was analyzed using Structural Equation Modeling (SEM) with AMOS software version 26.0 to check the validity, reliability, and relationships between different factors. The findings show that Green HRM and business diversification have a positive and significant impact on business sustainability, both directly and through improved performance of SMEs. This model adds value to the theoretical understanding of Green HRM and diversification strategies as key factors in achieving sustainable business growth. In practice, this model can help SMEs and related stakeholders create better strategies and policies that are adaptable, innovative, and environmentally friendly, supporting the growth of a green industry.

SMEs, creative industry, culinary, business sustainability

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