Micro Small Medium Enterprises Intention to Implement Circular Economy in Solo, Indonesia

• Published in: E3S web of conferences Vol. 517; p. 14002
• Main Authors: Satriyono, Raden Danang Aryo Putro, Pebrianti, Dwi, Sakti, Arga Seta Asmara
• Format: Journal Article
• Language: English
• Published: EDP Sciences 01-01-2024
• ISSN: 2267-1242; 2267-1242
• DOI: 10.1051/e3sconf/202451714002

Indonesia’s waste problem leads to severe effect such as economic, environment and social consequences in Indonesia as second largest contributor of waste In the world. Part of the waste source in Indonesia is from micro small medium enterprise sector. One of the solution to support sustainable development goals is by implementing circular economy to combat waste. This phenomenon then can be further analysed with variables related to perception and behavior of human. This study investigates determinants of MSME's participation intention and behavior to implement circular economy for their waste in a framework that incorporates Extended theory of planned behavior (TPB). Structural Equation Modeling (SEM) then was used to analyse all the variables correlation, The results of this study are that there are 5 significant correlations between variables, namely Descriptive Norm and Attitude have a significant and negative effect on Intention to Use. This study also found that the factors Perceived Behavioral Control, Individual concern and perceived economic use had a positive and significant effect. In addition, other findings are that Perceived Usefulness and Perceived Effectiveness and perceived environmental knowledge do not have a significant effect on Intention to Use.