Generation Z Preferences for MSME Products in Jombang: The Role of Local Values and Sustainable Innovation (A Case Study of Griya Manik in Transforming Glass Waste into Beads)
DOI:
https://doi.org/10.29407/s0s9qg18Abstract
Research Aim: This study aims to analyze the influence of local values and sustainable innovation on Generation Z preferences toward MSME products, particularly in the context of waste-based creative industries.
Design/Method/Approach: This research employs a quantitative explanatory approach using a survey method. Data were collected from 117 Generation Z respondents in Jombang through structured questionnaires measured on a Likert scale. The data were analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with the SmartPLS software.
Research Findings: The results indicate that both local values and sustainable innovation have a positive and significant effect on Generation Z preferences. The path coefficient values (β = 0.335; β = 0.521), t-statistics (> 1.96), and p-values (< 0.05) confirm significant relationships. Additionally, the R-square value of 0.648 shows that 64.8% of consumer preferences can be explained by the independent variables.
Theoretical Contribution/Originality: This study contributes to the literature by integrating local values and sustainable innovation into a unified framework to explain Generation Z consumer preferences, particularly within MSMEs adopting circular economy practices.
Practical/Policy Implication: The findings suggest that MSME practitioners should integrate local cultural values with continuous sustainable innovation to enhance product attractiveness and competitiveness, especially in targeting Generation Z consumers.
Research Limitation: This study is limited by the scope of variables and geographical coverage. Future research is recommended to include additional variables such as price, brand image, and digital marketing, as well as broader research areas.
Keywords:
Generation Z, MSMEs, Preferences, Circular Economy, Local Values, Sustainable InnovationDownloads
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