Green Technology Integration in Business Strategies: Bridging Environmental Sustainability and Economic Prosperity for Inclusive Sustainable Growth in Aceh Province

Abstract

This study examines how the integration of green technology into business strategies bridges environmental sustainability and economic prosperity, fostering sustainable growth through the lens of green entrepreneurship in Aceh Province, Indonesia. Amid global challenges like climate change and the Sustainable Development Goals (SDGs), the research explores causal relationships among green technology (independent variable), business strategy (intervening variable), and sustainable growth (dependent variable), within the context of Aceh's special autonomy emphasizing Sharia principles. Employing a quantitative survey design, the study targets a population of 350 registered businesses committed to sustainable practices. A purposive sample of 200 businesses was selected, based on criteria including at least three years of operation and adoption of green technologies such as eco-friendly waste management or renewable energy. Data were analyzed using Structural Equation Modeling (SEM) via AMOS software to test causal models and mediation effects. Findings reveal a significant positive relationship between green technology and business strategy, as well as between business strategy and sustainable growth. Business strategy partially mediates the influence of green technology on sustainable growth. This integration aligns with local Acehnese values, mitigates environmental degradation, promotes economic inclusion, and strengthens green entrepreneurship as a driver of sustainable innovation. The study recommends that the Aceh Government allocate incentives for green technology training to businesses, supporting inclusive sustainable growth in line with contemporary global sustainability agendas.