Green Human Capital and Innovation Driving Tourism Industry Growth: The Mediating Role of Green Economy Capability

Mustika Kusuma Basir; St Salmah Sharon; Muh Syulhasbiullah; Natali Ikawidjaja; Muh Arif

doi:10.61255/jeemba.v4i5.973

Authors

Mustika Kusuma Basir Sekolah Tinggi Ilmu Ekonomi Ciputra Makassar, Makassar, Indonesia
St Salmah Sharon Sekolah Tinggi Ilmu Ekonomi Ciputra Makassar, Makassar, Indonesia https://orcid.org/0000-0002-5127-6678
Muh Syulhasbiullah Sekolah Tinggi Ilmu Ekonomi Ciputra Makassar, Makassar, Indonesia
Natali Ikawidjaja Sekolah Tinggi Ilmu Ekonomi Ciputra Makassar, Makassar, Indonesia
Muh Arif Universitas Muslim Indonesia, Makassar, Indonesia https://orcid.org/0000-0002-6057-6496

DOI:

https://doi.org/10.61255/jeemba.v4i5.973

Keywords:

Green Economy Capability, Green Human Capital, Green Innovation, Sustainability, Tourism Industry Growth

Abstract

Purpose – The tourism industry in Indonesia faces increasing pressure to adopt sustainable practices due to environmental degradation and resource dependency, while empirical evidence regarding the mechanism linking green human capital and green innovation to tourism industry growth remains limited. This study aims to analyse the effects of Green Human Capital (GHC) and Green Innovation (GI) on Tourism MSME Growth, with Green Economy Capability (GEC) as a mediating variable.

Design/methodology/approach – A quantitative survey was conducted with 200 tourism MSMEs in Makassar, Takalar, Bantaeng, and Sinjai, Indonesia. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM).

Findings – The results reveal that Green Human Capital (β = 0.162; p = 0.039) and Green Innovation (β = 0.168; p = 0.034) positively and significantly influence Tourism MSME Growth. Green Economy Capability demonstrates the strongest direct effect on Tourism MSME Growth (β = 0.347; p < 0.001) and is significantly influenced by Green Human Capital (β = 0.512; p < 0.001) and Green Innovation (β = 0.369; p < 0.001). Furthermore, mediation analysis confirms that Green Economy Capability partially mediates the relationship between Green Human Capital and Tourism MSME Growth (β = 0.218; p < 0.001), as well as the relationship between Green Innovation and Tourism MSME Growth (β = 0.241; p < 0.001).

Originality/value – This study positions GEC as a strategic mechanism linking green resources and innovation to sustainable business growth. The model shows substantial explanatory power (R² = 0.624 for GEC; R² = 0.711 for Tourism MSME Growth) and strong predictive relevance. The findings support the integration of Resource-Based View and legitimacy theory and highlight the need for tourism MSMEs to strengthen organisational capability to translate green resources and innovation into long-term competitiveness and growth.

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