Explanatory Factors of Sustainability Management in Improving the Performance of Small and Medium Industries in Denpasar City

This study aims to answer the main problem of how sustainable management practices in the Small and Medium Industry (SMI) sector can improve their performance. Data was collected by distributing questionnaires to 364 SMI business actors in Denpasar City. Hypothesis testing using the PLS structural equation model with assistance SmartPLS 3.2.9 software. The research results show that sustainable management through the implementation of CSR, green product innovation and THK culture can contribute positively to the performance of SMEs. This provides an important understanding for SMI business actors to implement CSR even though it is in a simple concept and motivates SMI business actors to always be creative and innovate by developing environmentally friendly product innovations by creating environmentally friendly products to improve SMI business performance to compete in the global market. Another finding is that THK culture as a view or guideline for members involved in the organization by adopting local wisdom values into business models, especially in synergizing CSR with local wisdom in the form of THK culture has proven to have a positive effect on improving the performance of the SMI sector in Denpasar city.