The Effect of AI-Based Technology Implementation, Green Energy Sustainability, and Product Innovation on Economic Growth of the Manufacturing Industry in Indonesia
DOI:
https://doi.org/10.58812/wsnt.v2i03.1281Keywords:
AI-based technology, Green energy sustainability, Product innovation, Economic growth, Manufacturing industryAbstract
This study investigates the effect of AI-based technology implementation, green energy sustainability, and product innovation on the economic growth of the manufacturing industry in Indonesia. Using a quantitative research approach, data were collected from 120 manufacturing firms and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS 3). The results show that AI-based technology has the strongest positive impact on economic growth, followed by green energy sustainability and product innovation. AI-driven technologies optimize operations, reduce costs, and enhance decision-making, contributing significantly to the economic performance of firms. Green energy sustainability promotes long-term growth by reducing operational costs and improving environmental performance. While product innovation positively influences growth, its impact is relatively weaker, indicating the need for complementary factors. These findings provide insights for policymakers and industry leaders to focus on technological advancement, sustainability, and innovation as drivers of economic growth in Indonesia’s manufacturing sector.
References
A. K. Varshney, A. Garg, T. R. Pandey, R. K. Singhal, R. Singhal, and H. Sharma, “The Development of Manufacturing Industry Revolutions from 1.0 to 5.0,” J. Informatics Educ. Res., vol. 4, no. 1, 2024.
N. D. Kulkarni and S. Bansal, “Revolutionizing Manufacturing: The Integral Role of AI and Computer Vision in Shaping Future Industries,” J. Glob. Econ. Bus. Financ., vol. 6, no. 6, pp. 5–10, 2024.
A. Khang and S. Akhai, “Green Intelligent and Sustainable Manufacturing: Key Advancements, Benefits, Challenges, and Applications for Transforming Industry,” Mach. Vis. Ind. Robot. Manuf., pp. 405–417, 2024.
X. Wei, F. Jiang, Y. Chen, and W. Hua, “Towards green development: The role of intelligent manufacturing in promoting corporate environmental performance,” Energy Econ., vol. 131, p. 107375, 2024.
Y. S. Balcıoğlu, A. A. Çelik, and E. Altındağ, “Artificial Intelligence Integration in Sustainable Business Practices: A Text Mining Analysis of USA Firms,” Sustainability, vol. 16, no. 15, p. 6334, 2024.
V. Melinda, T. Williams, J. Anderson, J. G. Davies, and C. Davis, “Enhancing waste-to-energy conversion efficiency and sustainability through advanced artificial intelligence integration,” Int. Trans. Educ. Technol., vol. 2, no. 2, pp. 183–192, 2024.
K. E. Bassey, A. R. Juliet, and A. O. Stephen, “AI-Enhanced lifecycle assessment of renewable energy systems,” Eng. Sci. Technol. J., vol. 5, no. 7, pp. 2082–2099, 2024.
M. S. Akter, “Harnessing technology for environmental sustainability: utilizing AI to tackle global ecological challenge,” J. Artif. Intell. Gen. Sci. ISSN 3006-4023, vol. 2, no. 1, pp. 61–70, 2024.
Y. Chen and S. Jin, “Artificial intelligence and carbon emissions in manufacturing firms: The moderating role of green innovation,” Processes, vol. 11, no. 9, p. 2705, 2023.
H. D. Putri and H. Agustin, “Apakah Inovasi Hijau Dan Pengungkapan Emisi Karbon Dapat Mempengaruhi Nilai Perusahaan Pada Perusahaan Manufaktur?,” J. Akad. Akunt., vol. 6, no. 1, pp. 107–124, 2023.
S. Vilochani, T. C. McAloone, and D. C. A. Pigosso, “Integration of sustainability into product development: insights from an industry survey,” Proc. Des. Soc., vol. 4, pp. 1517–1526, 2024.
M. Relich, “Knowledge dissemination of sustainable product development,” in ECKM 2023 24th European Conference on Knowledge Management Vol 2, Academic Conferences and publishing limited, 2023.
H. Hasyim, H. B. Hutahaean, R. Situmorang, and S. Devima, “Strategi Inovasi Menggunakan Aplikasi Grab Merchant Meteor Aquarium dalam Meningkatkan Daya Saing Wirausaha Pasar Ikan Hias,” Bus. Invest. Rev., vol. 1, no. 6, pp. 1–6, 2023.
“Revolutionizing Industries: The Impact of Artificial Intelligence Applications,” Conf. PROCEEDING, 2024.
S. Malik, K. Muhammad, and Y. Waheed, “Artificial intelligence and industrial applications-A revolution in modern industries,” Ain Shams Eng. J., 2024.
Z. Bin Akhtar, “Artificial intelligence (AI) within manufacturing: An investigative exploration for opportunities, challenges, future directions,” Metaverse, 2024.
G. Genalti et al., “Enhancing Manufacturing with AI-powered Process Design,” Proc. Thirty-ThirdInternational Jt. Conf. Artif. Intell., 2024.
M. C. Jena, S. K. Mishra, and H. S. Moharana, “Renewable energy sourcing to enhance sustainable manufacturing by using Madhab’s EEE impact analysis model,” Glob. J. Energy Technol. Res. Updat., vol. 10, pp. 44–53, 2023.
A. Nik and A. Karim, “Shaping the Green Economy Through Application of Renewable Technologies and Industrialization,” 2024.
N. Rajashekar, D. Bandhu, K. Aravinda, M. K. Vishkarma, A. Singla, and S. Ziara, “Evaluation of Green Energy Impacts for Achieving Global Economic and Environmental Sustainability,” in E3S Web of Conferences, EDP Sciences, 2024, p. 1057.
P. Kumar et al., “Innovative and Sustainable Transformation of Industrial Sector as a Green Manufacturing Approach,” in E3S Web of Conferences, EDP Sciences, 2024, p. 1093.
D. S. Goswami, “GREEN TECHNOLOGY FOR SUSTAINABLE ENERGY PROCUTION FROM AGRICULTURE SECTOR,” 2024, pp. 183–195.
V. Andreitsev, V. Moroz, A. Shuvar, V. Pugachov, and O. Sliusarchuk, “Exploring opportunities for renewable energy adoption in business operations: Enhancing emission reduction and climate resilience,” Multidiscip. Rev., vol. 7, 2024.
O. Bashiru, C. Ochem, L. A. Enyejo, H. N. N. Manuel, and T. O. Adeoye, “The crucial role of renewable energy in achieving the sustainable development goals for cleaner energy,” Glob. J. Eng. Technol. Adv., vol. 19, no. 3, pp. 11–36, 2024.
M. A. Mwarenge and G. Kinyua, “Product Innovation as a Predictor of Organizational Performance among Micro Finance Banks in Mombasa County, Kenya,” Int. J. Manag. Stud. Res., vol. 10, no. 4, pp. 17–24, 2022.
“Influence of Product Innovation Strategy on Performance of Large Manufacturing Firms in China,” J. Strateg. Manag., vol. 6, no. 4, pp. 16–25, 2022, doi: 10.53819/81018102t5076.
J. C. F. De Guimarães, E. A. Severo, and E. C. H. Dorion, “Product innovation: path to sustainable competitive advantage with use of environmental, social and governance principles,” RGC-Revista Governança Corp., vol. 9, no. 1, pp. e0117–e0117, 2022.
H. Wang, P. Zhang, Z. Zhang, Y. Zhang, and Y. Wang, “Product Innovation Design Process Model Based on Functional Genes Extraction and Construction,” Appl. Sci., vol. 12, no. 24, p. 12990, 2022.
L. Zhang, R. Tan, Q. Peng, R. Miao, and L. Liu, “Product innovation based on the host gene and target gene recombination under the technological parasitism framework,” Adv. Eng. Informatics, vol. 59, p. 102341, 2024.
J. Barney, “Firm resources and sustained competitive advantage,” J. Manage., vol. 17, no. 1, pp. 99–120, 1991.
D. J. Teece, “Dynamic capabilities: Routines versus entrepreneurial action,” J. Manag. Stud., vol. 49, no. 8, pp. 1395–1401, 2012.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Loso Judijanto, Triyugo Winarko, Usman Tahir, Arnes Yuli Vandika, Amelia S. Sarungallo
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.