THE ROLE OF ECOLOGICAL INNOVATION AND ECOLOGICAL MARKETING TOWARDS GREEN MARKETING PERFORMANCE IMPROVEMENT

This research contributes to efforts to improve marketing performance in batik small and medium enterprises that care about the sustainability of the ecosystem through ecological innovation and ecological marketing. This paper discusses the results of a study of the relationship between marketing and the willingness to support environmentally friendly among small-scale ‘batik’ (Indonesian traditional clothing) producers in Central Java. The study was conducted on natural color batik SMEs in Central Java with a total sample of 120 respondents obtained through non-probability sampling to test the relationship between variables that developed in this study, using SEM-PLS modeling. The findings suggest that the performance of green marketing can be enhanced by ecological innovation through intervening variables of ecological marketing. The study found that operators with higher marketing performance measured by customer growth, market share and sales volume were more willing to replace synthetic dyes with more environmentally friendly natural dyes, even though the price of batik products was more expensive. The increased performance of green marketing in this study, it is expected to be able to encourage batik SMEs who use synthetic dyes to switch to natural dyes to reduce environmental pollution and protect the world from degradation through sustainable consumption and production.


INTRODUCTION
Sustainability becomes a strategic issue in realizing the goals of sustainable development, although the idea of sustainability is not new to organizations, green businesses are still concerned about the subsequent benefits that will be generated (Hassini, Surti and Searcy, 2012), which only sporadically pay attention to sustainability issues (Leonidou and Leonidou, 2011;Seuring and Müller, 2008). To integrate sustainability into organizations is still a challenge and difficult for

Relationship between Ecological Innovation and Green Marketing Performance
Ecological innovation is considered as a new product or process that adds value to businesses and customers, significantly reducing environmental impact (Fussler, 1996). Ecological innovation can be divided into green products and processes, including innovations in technologies involved in the design of green products, using energy savings, waste recycling, and technology to prevent pollution (Y. S. Chen, Lai and Wen, 2006). Ecological innovation is divided into the process, product and organizational innovation (OECD, 2009). All technologies and innovations developed for new products or services that provide positive benefits to the environment are key factors for sustainability for the company (Ar, 2012). Many companies are willing to invest and put more effort into developing ecological innovation, therefore, developing ecological innovation is a winwin solution for resolving conflicts between economic development and environmental protection (Chang and Taylor, 2016).
The Diffusion of Innovation Theory applies to support the relationship between ecological innovation and corporate marketing performance. This theory explains how to increase the rate of adoption of green products, services, and processes to help companies gain a competitive advantage (Vaccaro, 2009). Therefore, ecological innovation can be considered as a unique resource that is owned by the business that allows companies to gain competitive advantage and simultaneously improve the performance of environmentally friendly marketing. Green marketing performance is reflected in the perceived and expected benefits of the integration of environmental management in their business operations (Psomas, Fotopoulos and Kafetzopoulos, 2011).
Ecological innovation for Small and Medium Enterprises (SMEs), including in new developments that include environmentally friendly products and change processes or environmentally friendly production methods (Oxborrow and Brindley, 2013). In Indonesia, ecological innovation can be found in natural color batik UKM that was developed in 2004, through socialization and training to batik UKM, in order to use natural dyes. However, the development of natural color batik SMEs is felt to be very slow, due to the difficult production process, high costs and the resultant coloring of batik products that are not bright enough, making it less attractive to the market. Therefore, through the analysis of the relationship between ecological innovations on the performance of environmentally friendly marketing, it is hoped that the results of this study can increase the number of natural color batik SMEs.
H1: There is a positive relationship between ecological innovation and the performance of environmentally friendly marketing

Relationship between Ecological Innovation and Ecological Marketing
Ecological innovation is the creation of new and competitive efforts from products, processes, systems, services, and procedures that are designed to meet human needs and provide better quality of life for ecosystems, with a minimum utilization of the life cycle of natural resources and a minimum release of toxic substances (Reid and Miedzinski, 2008). Ecological innovation is the production, assimilation or exploration of a product, production process, service or management method or business that is new to the organization (developing or adopting it). It is resulted throughout its entire life cycle, in an environment with fewer risks, less pollution and impacts other negatives of resource use, power inclusive, compared to relevant alternatives (Kemp and Pearson, 2007). Ecological innovation is a systemic process, technology, and / or social change, which consists of the discovery of ideas and their application in environmental improvement practices (Carrillo-Hermosilla, del Río González and Könnölä, 2009).
Ecological marketing addresses the needs of consumers with high environmental and social awareness. Green marketing influences how companies manage their business and interact with all stakeholders who might be affected by their environmental and social practices (Ottoman, 2008). Green marketing is a process that includes: operations management, marketing ethics, consumption ethics, corporate social responsibility, sustainable consumption, economic and consumer policies, socially responsible investment and materialism (Chamorro-Premuzic, Furnham and Lewis, 2007). Effective green marketing strategies must be further developed on green branding, packaging, labeling, and advertising to create demand for environmentally friendly products (Juwaheer, Pudaruth and Monique, 2012). The goal of ecological marketing is to reduce the impact on the natural environment during the process of planning and implementing products or services, prices, places, and promotions. Green marketing covers from production to post-purchase services with the aim of balancing corporate profits and protecting the environment (Gordon, Carrigan and Hastings, 2011). Green marketing covers a variety of activities, including product modification, changes in the production process, packaging changes, renovations, and styling and modifying green advertisements (Sarkar, 2012). The goal of green marketing is to create profits and maintain social responsibility (Mourad and Ahmed, 2012). This can be achieved if the company continues to carry out ecological innovation.
H 2: Ecological innovation positively influences ecological marketing Relationship between Ecological Marketing and Green Marketing Performance As global markets continue to evolve, the pillars of sustainability (i.e., environment, economy and social justice) are increasing, as part of marketing decision making (Huang and Rust, 2011). Ecological marketing is a process that includes: operations management, marketing ethics, consumption ethics, corporate social responsibility, sustainable consumption, economic and consumer policies, socially responsible investment and materialism (Chamorro-Premuzic et al., 2007). Green marketing influences how companies manage their business and interact with all stakeholders who might be affected by their environmental and social practices (Ottman, 2014). Developing an environmentally friendly marketing (eco-marketing) strategy, which includes efforts to produce, promote, package, and reclaim products in a way that is sensitive or responsive to ecological problems, has received great attention. An environmentally friendly marketing strategy will follow the attention of consumer consumption (Sheng, Zhou and Li, 2010).
The positive relationship is between the performance of green product development and the two antecedents of green dynamic capabilities and green transformational leadership. That is partly mediated by green creativity shows that green dynamic capabilities and green transformational leadership cannot only directly affect the performance of green product development positively but also indirectly directly influence it positively through green creativity (Y. S. Chen, 2013). In applying ecological marketing in business, it is necessary to consider the extent to which managers know and apply ecological marketing as a long-term strategy (Funaru, 2014). Ecological marketing brings together a variety of activities including modifying products, changing production processes, changes in packaging and advertising (Popescu, Corbos, Comănescu and Bunea, 2017).
H3: Ecological marketing has a positive influence on green marketing performance Based on the research hypothesis, the empirical research model is projected in the following diagram model: Several previous studies related to the effect of ecological innovation on organizations produce value in defining innovations that are able to attract green revenues in the market, reduce environmental impacts while creating value for organizations (Foxon and Andersen, 2009). Ecological innovation is involved in creating and spreading the benefits of new products called environmental innovation varieties (Galliano, Magrini, Tardy and Triboulet, 2018). This involves creating new spaces in markets, products and services or processes that involve social, environmental, or sustainability. Other studies using three dimensions of performance include environmental performance, economic performance, and marketing performance (Fraj-Andrés, Martínez-Salinas and Matute-Vallejo, 2009). Environmental performance is defined when organizations carry out operations at low cost, reduce energy consumption, use recycled waste to preserve and protect the environment (Gholami, Sulaiman, Ramayah and Molla, 2013). Environmental performance, economic performance, and intangible performance are used to measure the overall appearance of the organization (Laosirihongthong, Adebanjo and Tan, 2013). Thus, it is hoped that green marketing is able to mediate the relationship between green innovation and green marketing performance. In general, the research model directly links green innovation to

METHODOLOGY
This research is included in the type of explanatory research with a quantitative approach to look for explanations in the form of a causal relationship between several variables through testing one hypothesis with another variable. The populations in this study were natural color batik businesses in Central Java. The sample selection uses a nonprobability sampling technique with a judgment sampling technique, which is a sample determination technique with certain considerations for natural color batik businesspersons and natural color batik incorporated in UKM so that 120 samples are determined. Sources of data came from natural color batik businesspersons and natural color batik in MSMEs and data collection was carried out through questionnaires to respondents.

Validity and Reliability Testing
Validity testing is done to find out how well an instrument measures the concept or what should be measured using the loading factor value of each question item. A valid research instrument is required to have a loading factor of more than 0.5 (Ghozali, 2011). While reliability testing uses Cronbach's Alpha method in which one questionnaire is considered reliable if Cronbach's Alpha> 0.6 (Ghozali, 2011).

Analysis Techniques
To test the model and connectedness developed in this research, an analytical technique is needed. The analysis technique used in this research is Structural Equation Modeling (SEM) with the PLS program. This technique is intended as a group of statistical testing techniques that make it possible to examine a relatively complex set of relationships/models (Ferdinand, 2014).

RESULTS AND DISCUSSION
According to factor analysis of confirmatory on an exogenous construct includes variable of ecology innovation and ecology marketing can be known that all of indicators have been value of Standardized Regression Weights > 0,5 with significance < 0,05 can be known from table below: Moreover, the measurement of exogenous construct of ecology innovation and ecology marketing will be executed by applying each indicator that has been decided.

Analysis of Outer Model (Measurement Model)
The outer model analysis is conducted to ensure that the indicators used are feasible (valid and reliable) to be used as a measure of the variables studied. The Outer model defines the relationship between latent variables and their indicators. Outer model analysis can be seen from several indicators, namely convergent validity, discriminant validity, and un-dimensionality.

Convergent Validity
The value of discriminant validity is the value of the loading factor in the latent variable with its indicators. The value of the loading factor is expected to be 0.70, but a value between 0.5 0 can still be tolerated as long as the model is still in the development stage. The results of data processing indicate a loading factor: Table 3 Convergent Validity

Source: calculated by authors
In addition to the value of the loading factor, convergent validity can also be seen from the Average Variance Extracted (AVE). The expected AVE value is > 0.5. In the study of AVE values, each construct is above 0.5. Therefore, there is no problem of convergent validity in the model under test. The results of the data processing show the AVE value of construct:

Discriminant validity can be seen from the value of the cross-loading factor.
If the correlation of the indicator with its construct has a higher value than the correlation of the indicator with another construct, it is said that the construct has high discriminant validity. The correlation of the indicator with the construct has a higher value than the correlation of the indicator with other constructs. Therefore, the construct has high discriminant validity. Source: calculated by authors Harini, C., Priyanto, S. H., Ihalauw, J. and Andadari, R. K. (2020), "The role of ecological innovation and ecological marketing towards green marketing performance improvement", Management and entrepreneurship: trends of development, Vol. 1, Issue 11, pp. 98-112, DOI: https://doi.org/10.26661/2522-1566/2020 Test for dimensionality In dimensionality indicators are performed using composite reliability and Cronbach alpha. Data that has a value of composite reliability and Cronbach alpha > 0.7 means that the data has a value of reliability or high reliability. The results of the data processing show the Composite Reliability construct and Cronbach Alpha construct, it is known that all constructs have a high degree of reliability, because of the value of composite reliability and Cronbach alpha > 0.7.

Inner Model Analysis (Structural Model)
The inner model describes the relationship between latent variables based on substantive theory. This analysis is done to ensure that structural models are built robust and accurate. Inner model evaluation can be seen from several indicators namely Coefficient of Determination (R2). The value of R2 is the coefficient of determination in endogenous constructs. The results of the data processing show the value (R2) of the Endogenous Variables

Hypothesis Testing
Hypothesis testing is done by looking at the probability value and t-count. The evaluation criteria are if p-value <0.05 or t-count> t-table then the hypothesis is accepted. The results of hypothesis testing indicate that p-value <0.05, so it can be said that all three hypotheses can be accepted.

RESULT AND DISCUSSION
The test findings in hypothesis 1 state that ecological innovation has a positive and significant effect on the performance of green marketing. This means getting higher.
Ecological innovation can guarantee a marketing performance that is further improved. Ecological innovation is the ability of companies to turn new knowledge and ideas into products, processes, and organizations while maintaining the environment. Regarding organizational green innovation, several authors state that green innovation involves the implementation of several management activities aimed at reducing environmental impact (Triguero, Córcoles and Cuerva, 2014), although the study of ecological innovation in SMEs is not like that of large companies (Dahlander and Gann, 2010). In this study, ecological innovation in SMEs in natural color batik can affect marketing performance. The results of this study support previous research that was investigated by (Saunila, Ukko and Rantanen, 2014).
The test findings in hypothesis 2 state that ecological innovation has a positive and significant effect on ecological marketing. The findings of this study indicate that the higher the ecological innovation can influence its ecological marketing. The findings of this study supporting the relationship between various aspects of innovation have been empirically examined in detail, especially for green innovation (Noailly and Ryfisch, 2015).
Hypothesis 3 states that green marketing has a positive and significant effect on the performance of green marketing. This means that SMEs have higher ecological marketing associated with innovating regional unique motifs, designs with nuances of cultural diversity, symbols of local regional identity, and unique local cultural identities will enhance green marketing performance. Even so, SMEs having green marketing will take action to design products and mix marketing to create specific memories for customers, so customers from segmented target markets understand and understand the innovation of batik products of the company. The success of green marketing performance will still be an important managerial concern, because not only successful green marketing is also a major source of financial markets and performance development but they can also show undiscovered business opportunities (Wilkinson, Thomas and McNally, 2011).

CONCLUSION
The first research finding is the direct influence of ecological innovation on the performance of green marketing is potential because it has a significant influence on the measurement results. The direct influence of this ecological innovation shows that the ability of innovation to develop products, processes, and organizations that favor sustainability can improve green marketing performance.
The second research finding is the indirect effect of ecological innovation on the performance of green marketing through ecological marketing. The direct effect on the first pathway between ecological innovation and green marketing performance shows significant results, the alternative second pathway has great potential in improving marketing performance. This means that ecological innovation also has an indirect effect on marketing performance through the development of green marketing. Thus, it can be said that ecological innovation can and can improve marketing performance, another way can be done, namely by creating ecological marketing development.

ACKNOWLEDGMENT
The author would like to express my sincere thanks to Prof. Sony Heru Priyanto as the promoter, Prof. John JOI Ihalau and Mrs. Roos Kities Andadari, Ph.D. as co-promoters.
The improvement in writing this article was assisted through the International Scientific Article Writing Clinic organized by the Ministry of Research and Technology of Higher Education in Indonesia.