Competitive advantage as a mediating effect in the impact of green innovation and firm performance
Abstract
The objective of this study was to measure or assess competitive advantage in mediating the effect of green innovation on firm performance. The data in the study were PROPER companies for the 2010-2018 period and the sample was selected using purposive sampling so that 369 companies were obtained. The results of this study proved that green innovation had a positive effect on competitive advantage, the competitive advantage had a positive effect on firm performance, green innovation had no effect on firm performance, and competitive advantage mediated the effect of green innovation on firm performance. In reducing environmental problems, companies can apply green innovation to increase the company’s competitive advantage and firm performance.
Keyword : green innovation, competitive advantage, firm performance, PROPER companies
How to Cite
Novitasari, M., & Agustia, D. (2023). Competitive advantage as a mediating effect in the impact of green innovation and firm performance. Business: Theory and Practice, 24(1), 216–226. https://doi.org/10.3846/btp.2023.15865
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Abdulla, Y. (2016). Capital structure in a tax-free economy: Evidence from UAE. International Journal of Islamic and Middle Eastern Finance and Management, 10(1), 102–116. https://doi.org/10.1108/IMEFM-11-2015-0144
Abid, A., Shaique, M., & Anwar, M. (2018). Do big four auditors always provide higher audit quality? Evidence from Pakistan. International Journal of Financial Studies, 6(2), 1–22. https://doi.org/10.3390/ijfs6020058
Agustia, D., Permatasari, Y., Fauzi, H., & Sari, M. N. A. (2020). Research and development intensity, firm performance, and green product innovation. Journal of Security and Sustainability Issues, 9(3), 1039–1049. https://doi.org/10.9770/jssi.2020.9.3(27)
Agustia, D., Sawarjuwono, T., & Dianawati, W. (2019). The mediating effect of environmental management accounting on green innovation – firm value relationship. International Journal of Energy Economics and Policy, 9(2), 299–306. https://doi.org/10.32479/ijeep.7438
Agyabeng-Mensah, Y., Ahenkorah, E., Afum, E., Agyemang, A. N., Agnikpe, C., & Rogers, F. (2020). Examining the influence of internal green supply chain practices, green human resource management and supply chain environmental cooperation on firm performance. Supply Chain Management, 25(5), 585–599. https://doi.org/10.1108/SCM-11-2019-0405
Albort-Morant, G., Leal-Millán, A., & Cepeda-Carrión, G. (2016). The antecedents of green innovation performance: A model of learning and capabilities. Journal of Business Research, 69(11), 4912–4917. https://doi.org/10.1016/j.jbusres.2016.04.052
Anwar, M. (2018). Business model innovation and SMEs performance – does competitive advantage mediate? International Journal of Innovation Management, 1850057, 1–31. https://doi.org/10.1142/S1363919618500573
Anwar, M., Khan, S. Z., & Shah, S. Z. A. (2018). Big data capabilities and firm’s performance: A mediating role of competitive advantage. Journal of Information and Knowledge Management, 17(4). https://doi.org/10.1142/S0219649218500454
Ardyan, E., Nurtantiono, A., Istiyanto, B., & Rahmawan, G. (2017). Green Innovation capability as driver of sustainable competitive advantage and SMEs marketing. International Journal of Civil Engineering and Technology, 8(8), 1114–1122.
Arenhardt, D. L., Battistella, L. F., & Grohmann, M. Z. (2016). The influence of the green innovation in the search of competitive advantage of enterprises of the electrical and electronic Brazilian sectors. International Journal of Innovation Management, 20(1), 1–21. https://doi.org/10.1142/S1363919616500043
Arfi, W. B., Hikkerova, L., & Sahut, J. M. (2018). External knowledge sources, green innovation and performance. Technological Forecasting & Social Change, 129(August 2017), 210–220. https://doi.org/10.1016/j.techfore.2017.09.017
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Barney, J., Wright, M., & Ketchen, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625–641. https://doi.org/10.1177/014920630102700601
Cai, W., & Li, G. (2018). The drivers of eco-innovation and its impact on performance: Evidence from China. Journal of Cleaner Production, 176, 110–118. https://doi.org/10.1016/j.jclepro.2017.12.109
Chan, H. K., Yee, R. W. Y., Dai, J., & Lim, M. K. (2016). The moderating effect of environmental dynamism on green product innovation and performance. International Journal of Production Economics, 181, 384–391. https://doi.org/10.1016/j.ijpe.2015.12.006
Chang, C.-H., & Chen, Y.-S. (2013). Managing green brand equity: The perspective of perceived risk theory. Quality and Quantity, 48, 1753–1768. https://doi.org/10.1007/s11135-013-9872-y
Chang, C. (2011). The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation. Journal of Business Ethics, 104, 361–370. https://doi.org/10.1007/s10551-011-0914-x
Chariri, A., Nasir, M., Januarti, I., & Daljono, D. (2019). Determinants and consequences of environmental investment: An empirical study of Indonesian firms. Journal of Asia Business Studies, 13(3), 433–449. https://doi.org/10.1108/JABS-05-2017-0061
Chen, Y. K., Coviello, N., & Ranaweera, C. (2020). How does dynamic network capability operate? A moderated mediation analysis with NPD speed and firm age. Journal of Business & Industrial Marketing, 36(2). https://doi.org/10.1108/JBIM-01-2020-0050
Chen, Y., Lin, M. J., & Chang, C. (2009). Industrial marketing management the positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Management, 38(2), 152–158. https://doi.org/10.1016/j.indmarman.2008.12.003
Chiou, T. Y., Chan, H. K., Lettice, F., & Chung, S. H. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822–836. https://doi.org/10.1016/j.tre.2011.05.016
Chuang, M.-Y., Chen, C., & Lin, M. J. (2016). The impact of social capital on competitive advantage: The mediating effects of collective learning and absorptive capacity. Management Decision, 54(6), 1443–1463. https://doi.org/10.1108/MD-11-2015-0485
Dechant, K., Altman, B., Downing, R. M., Keeney, T., Swaine, A., Miller, R. A., & Post, J. (1994). Environmental leadership: Environmental compliance to from competitive advantage. Academy of Management Executive, 8(3), 7–27. https://doi.org/10.5465/ame.1994.9503101163
Do, B. (2020). The links between proactive environmental strategy, competitive advantages and firm performance: An empirical study in Vietnam. Sustainability, 12(4962), 1–22. https://doi.org/10.3390/su12124962
Doran, J., Ryan, G., Doran, J., & Ryan, G. (2012). Regulation and firm perception, eco-innovation and firm performance. European Journal of Innovation Management, 15(4), 421–443. https://doi.org/10.1108/14601061211272367
El-Kassar, A., & Kumar, S. (2017). Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices. Technological Forecasting & Social Change, 144, 483–498. https://doi.org/10.1016/j.techfore.2017.12.016
Ferreira, J., Cardim, S., & Coelho, A. (2020). Dynamic capabilities and mediating effects of innovation on the competitive advantage and firm’s performance: The moderating role of organizational learning capability. Journal of the Knowledge Economy, 12, 620–644. https://doi.org/10.1007/s13132-020-00655-z
Gao, Y., Wu, J., & Hafsi, T. (2017). The inverted U-Shaped relationship between corporate philanthropy and spending on research and development: A case of complementarity and competition moderated by firm size and visibility. Corporate Social Responsibility and Environmental Management, 24(6), 465–477. https://doi.org/10.1002/csr.1420
Ge, B., Yang, Y., Jiang, D., Gao, Y., Du, X., & Zhou, T. (2018). An empirical study on green innovation strategy and sustainable competitive advantages: Path and boundary. Sustainability, 10(10), 1–18. https://doi.org/10.3390/su10103631
Groenewegen, P., & Vergragt, P. (1991). Environmental issues as threats and opportunities in technological innovation. Technology Analysis and Strategic Management, 3(1), 43–55. https://doi.org/10.1080/09537329108524031
Gunasekaran, A., & Spalanzani, A. (2012). Sustainability of manufacturing and services: Investigations for research and applications. International Journal of Production Economics, 140(1), 35–47. https://doi.org/10.1016/j.ijpe.2011.05.011
Gürlek, M., & Tuna, M. (2017). Reinforcing competitive advantage through green organizational culture and green innovation. Service Industries Journal, 38(7–8), 1–25. https://doi.org/10.1080/02642069.2017.1402889
Handayani, R., Wahyudi, S., & Suharnomo, S. (2017). The effects of corporate social responsibility on manufacturing industry performance: The mediating role of social collaboration and green innovation. Business: Theory and Practice, 18, 152–159. https://doi.org/10.3846/btp.2017.016
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014. https://doi.org/10.5465/amr.1995.9512280033
Ho, Y., Wang, W. B., Shieh, W. L., Ho, Y., Wang, W. B., & Shieh, W. L. (2016). An empirical study of green management and performance in Taiwanese electronics firms. Cogent Business & Management, 3(1). https://doi.org/10.1080/23311975.2016.1266787
Hojnik, J., & Ruzzier, M. (2016). The driving forces of process eco-innovation and its impact on performance: Insights from Slovenia. Journal of Cleaner Production, 133, 812–825. https://doi.org/10.1016/j.jclepro.2016.06.002
Huang, X., Hu, Z., Liu, C., Yu, D., & Yu, L. (2016). The relationships between regulatory and customer pressure, green organizational responses, and green innovation performance. Journal of Cleaner Production, 112, 3423–3433. https://doi.org/10.1016/j.jclepro.2015.10.106
Jatiningrum, C., Abdul-Hamid, M. A., & Popoola, O. M. J. (2016). The impact of disclosure quality on corporate governance and earnings management: Evidence from companies in Indonesia. International Journal of Economics and Financial, 6(4S), 118–125.
Kamukama, N., Kyomuhangi, D. S., Akisimire, R., & Orobia, L. A. (2017). Competitive advantage mediator of managerial competence and financial performance of commercial bank in Uganda. African Journal of Economic and Management Studies, 8(2), 221–234. https://doi.org/10.1108/AJEMS-10-2016-0142
Kemlu. (2020). Indonesia Tegaskan Komitmen untuk SDGs, Konservasi Lingkungan dalam UNESCO General Conference. https://kemlu.go.id/portal/id/read/793/berita/indonesia-tegaskan-komitmen-untuk-sdgs-konservasi-lingkungan-dalam-unesco-general-conference
Khaksar, E., Abbasnejad, T., & Esmaeili, A. (2015). The effect of green supply chain management practices on environmental performance and competitive advantage: A case study of the cement industry. Technological and Economic Development of Economy, 4913(November). https://doi.org/10.3846/20294913.2015.1065521
Khaksar, E., Abbasnejad, T., Esmaeili, A., & Tamošaitienė, J. (2016). The effect of green supply chain management practices on environmental performance and competitive advantage: A case study of the cement industry. Technological and Economic Development of Economy, 22(2), 293–308. https://doi.org/10.3846/20294913.2015.1065521
Khan, P. A., & Johl, S. K. (2019). Nexus of comprehensive green innovation, environmental management system-14001-2015 and firm performance. Cogent Business & Management, 6(1). https://doi.org/10.1080/23311975.2019.1691833
Khazeal, B. K., & Majeed, M. H. (2020). The successive impact of the green organizational strategies and green innovation in enhancing the sustainable competitive advantage. Pervasive Health: Pervasive Computing Technologies for Healthcare, 2, 1222–1236. https://doi.org/10.4108/eai.28-6-2020.2297936
Koentjoro, S., & Gunawan, S. (2020). Managing knowledge, dynamic capabilities, innovative performance, and creating sustainable competitive advantage in family companies: A case study of a family company in Indonesia. Journal of Open Innovation, 6(3), 1–21. https://doi.org/10.3390/joitmc6030090
Kunapatarawong, R., & Martínez-Ros, E. (2016). Towards green growth: How does green innovation affect employment? Research Policy, 45(6), 1218–1232. https://doi.org/10.1016/j.respol.2016.03.013
Kuncoro, W., & Suriani, W. O. (2018). Achieving sustainable competitive advantage through product innovation and market driving. Asia Pacific Management Review, 23(3), 186–192. https://doi.org/10.1016/j.apmrv.2017.07.006
Kuo, S., Lin, P., & Lu, C. (2017). The effects of dynamic capabilities, service capabilities, competitive advantage, and organizational performance in container shipping. Transportation Research Part A, 95, 356–371. https://doi.org/10.1016/j.tra.2016.11.015
Kushwaha, G. S., & Sharma, N. K. (2015). Green initiatives: A step towards sustainable development and firm’s performance in the automobile industry. Journal of Cleaner Production, 121, 116–129. https://doi.org/10.1016/j.jclepro.2015.07.072
Lee, V.-H., Foo, A. T.-L., Leong, L.-Y., & Ooi, K.-B. (2016). Can competitive advantage be achieved through knowledge management? A case study on SMEs. Expert Systems With Applications, 65, 136–151. https://doi.org/10.1016/j.eswa.2016.08.042
Li, D., Zhao, Y., Zhang, L., Chen, X., & Cao, C. (2017). Impact of quality management on green innovation. Journal of Cleaner Production, 170, 462–470. https://doi.org/10.1016/j.jclepro.2017.09.158
Liao, Z. (2016). Temporal cognition, environmental innovation, and the competitive advantage of enterprises. Journal of Cleaner Production, 135, 1045–1053. https://doi.org/10.1016/j.jclepro.2016.07.021
Lin, Y., & Chen, Y. (2017). Determinants of green competitive advantage: The roles of green knowledge sharing, green dynamic capabilities, and green service innovation. Quality & Quantity, 51(4), 1663–1685. https://doi.org/10.1007/s11135-016-0358-6
Liu, Z., Li, X., Peng, X., Lee, S., Li, X., Peng, X., & Lee, S. (2019). Green or nongreen innovation? Different strategic preferences among subsidized enterprises with different ownership types. Journal of Cleaner Production, 245, 118786. https://doi.org/10.1016/j.jclepro.2019.118786
Ma, Y., Yin, Q., Pan, Y., Cui, W., Xin, B., & Rao, Z. (2018). Green product innovation and firm performance: Assessing the moderating effect of novelty-centered and efficiency-centered business model design. Sustainability, 10(6), 1–13. https://doi.org/10.3390/su10061843
Maury, B. (2018). Sustainable competitive advantage and profitability persistence: Sources versus outcomes for assessing advantage. Journal of Business Research, 84(October 2016), 100–113. https://doi.org/10.1016/j.jbusres.2017.10.051
Munsung, R., & Stephens, A. R. (2020). Innovation-orientated technology assimilation strategy and Korean SMES’ enhacing innovation capability, competitive advantage and firm performance. International Journal of Innovation Management, 24(6). https://doi.org/10.1142/S1363919620500814
Nadkarni, S., & Narayanan, V. K. (2007). Strategic schemas, strategic flexibility, and firm performance: The moderating role of industry clockspeed. Strategic Management Journal, 28(3), 243–270. https://doi.org/10.1002/smj.576
Nanath, K., & Pillai, R. R. (2017). The influence of green is practices on competitive advantage: Mediation role of green innovation performance. Information Systems Management, 34(1), 3–19. https://doi.org/10.1080/10580530.2017.1254436
Obeidat, U., Obeidat, B., Alrowwad, A., Alshurideh, M., Masa’deh, R., & Mohammad, A. (2020). The effect of intellectual capital on competitive advantage: The mediating role of innovation. Management Science Letters, 11, 1331–1344. https://doi.org/10.5267/j.msl.2020.11.006
Palcic, I., & Prester, J. (2020). Impact of advanced manufacturing technologies on green innovation. Sustainability, 12(8), 3499. https://doi.org/10.3390/su12083499
Palmer, M., & Truong, Y. (2017). The impact of technological green new product introductions on firm profitability. Ecological Economics, 136, 86–93. https://doi.org/10.1016/j.ecolecon.2017.01.025
Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
Porter, M. E. (1981). The contributions of industrial organization to strategic management. The Academy of Management Review, 6(4), 609–620. https://doi.org/10.2307/257639
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free press.
Potjanajaruwit, P. (2018). Competitive advantage effects on firm performance: A case study of startups in Thailand. Journal of International Studies, 11(3), 104–111. https://doi.org/10.14254/2071-8330.2018/11-3/9
Pratono, A. H., Darmasetiawan, N. K., Yudiarso, A., & Jeong, B. G. (2019). Achieving sustainable competitive advantage through green entrepreneurial orientation and market orientation: The role of inter-organizational learning. Bottom Line, 32(1), 2–15. https://doi.org/10.1108/BL-10-2018-0045
Reilly, C. A. O., & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: Resolving the innovator’s dilemma. Research in Organizational Behavior, 28, 185–206. https://doi.org/10.1016/j.riob.2008.06.002
Rennings, K. (2000). Redefining innovation – eco-innovation research and the contribution from ecological economics. Ecological Economics, 32(2), 319–332. https://doi.org/10.1016/S0921-8009(99)00112-3
Sellitto, A. M., Camfield, G. C., & Buzuku, S. (2020). Green innovation and competitive advantages in a furniture industrial cluster: A survey and structural model. Sustainable Production and Consumption, 23, 94–104. https://doi.org/10.1016/j.spc.2020.04.007
Singh, M. P., Chakraborty, A., & Roy, M. (2016). The link among innovation drivers, green innovation and business performance: Empirical evidence from a developing economy. World Review of Science, Technology and Sustainable Development, 12(4), 316–334. https://doi.org/10.1504/WRSTSD.2016.082191
Singh, S. K., Giudice, M. Del, Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting & Social Change, 150, 1–12. https://doi.org/10.1016/j.techfore.2019.119762
Singjai, K., Winata, L., & Kummer, T. (2018). Green initiatives and their competitive advantage for the hotel industry in developing countries. International Journal of Hospitality Management, 75, 131–143. https://doi.org/10.1016/j.ijhm.2018.03.007
Siswoyo, M., Kustyadji, G., Wijayani, A., & Hartati, W. (2020). Competitive advantage of environmental management and green innovation. Utopía y Praxis Latinoamericana, 25(10), 533–544.
Skordoulis, M., Ntanos, S., & Kyriakopoulos, G. L. (2020). Environmental innovation, open innovation dynamics and competitive advantage of medium and large-sized firms. Journal of Open Innovation, 6(4), 1–30. https://doi.org/10.3390/joitmc6040195
Somjai, S., Fongtanakit, R., & Laosillapacharoen, K. (2020). Impact of environmental commitment, environmental management accounting and green innovation on firm performance: An empirical investigation. International Journal of Energy Economics and Policy, 10(3), 204–210. https://doi.org/10.32479/ijeep.9174
Song, W., & Yu, H. (2017). Green innovation strategy and green innovation: The roles of green creativity and green organizational identity. Corporate Social Responsibility and Environmental Management, 25(2), 135–150. https://doi.org/10.1002/csr.1445
Srivastava, M., Franklin, A., & Martinette, L. (2013). Building a sustainable competitive advantage. Journal of Technology Management and Innovation, 8(2), 47–60. https://doi.org/10.4067/S0718-27242013000200004
Takalo, K. S., Tooranloo, S. H., & Parizi, S. Z. (2020). Green innovation: A systematic literature review. Journal of Cleaner Production, 279, 122474. https://doi.org/10.1016/j.jclepro.2020.122474
Tang, M., Walsh, G., Lerner, D., Fitza, M. A., & Li, Q. (2017). Green Innovation, managerial concern and firm performance: An empirical study. Business Strategy and the Environment, 27(1), 39–51. https://doi.org/10.1002/bse.1981
Tariq, A., Badir, Y. F., Tariq, W., & Bhutta, U. S. (2017). Drivers and consequences of green product and process innovation: A systematic review, conceptual framework and future outlook. Technology in Society, 51, 8–23. https://doi.org/10.1016/j.techsoc.2017.06.002
Tjahjadi, B., Soewarno, N., Hariyati, H., & Nafidah, L. N. (2020). The role of green innovation between green market orientation and business performance: Its Implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–18. https://doi.org/10.3390/joitmc6040173
Tseng, M., Wang, R., Chiu, A. S. F., Geng, Y., & Lin, Y. H. (2013). Improving performance of green innovation practices under uncertainty. Journal of Cleaner Production, 40, 71–82. https://doi.org/10.1016/j.jclepro.2011.10.009
Tu, Y., & Wu, W. (2020). How does green innovation improve enterprises’ competitive advantage? The role of organizational learning. Sustainable Production and Consumption, 26, 504–516. https://doi.org/10.1016/j.spc.2020.12.031
Tupamahu, K. H., Ghozali, I., & Hp, P. T. B. (2019). Lean management, competitive advantage, and firm performance: The role of management control systems (evidence from Indonesia manufacturing firms). Academic Journal of Interdisciplinary Studies, 8(3), 221–233. https://doi.org/10.36941/ajis-2019-0020
Ullah, A., Pinglu, C., Ullah, S., Zaman, M., & Haider, S. (2020). The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan. Heliyon, 6(8), 1–10. https://doi.org/10.1016/j.heliyon.2020.e04741
Vithessonthi, C., & Racela, O. C. (2016). Short-and long-run effects of internationalization and R&D intensity on firm performance. Journal of Multinational Financial Management, 34, 28–45. https://doi.org/10.1016/j.mulfin.2015.12.001
Wang, C. (2019). How organizational green culture influences green performance and competitive advantage: The mediating role of green innovation. Journal of Manufacturing Technology Management, 30(4), 666–683. https://doi.org/10.1108/JMTM-09-2018-0314
Weng, H. H. R., Chen, J. S., & Chen, P. C. (2015). Effects of green innovation on environmental and corporate performance: A stakeholder perspective. Sustainability, 7(5), 4997–5026. https://doi.org/10.3390/su7054997
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Wolf, C. A., Black, J. R., & Stephenson, M. W. (2020). Benchmarking upper midwest dairy farm profitability. Agricultural Finance Review, 80(5), 733–744. https://doi.org/10.1108/AFR-02-2020-0022
Xue, M., Boadu, F., & Xie, Y. (2019). The penetration of green innovation on firm performance: effects of Absorptive capacity and managerial environmental concern. Sustainability, 11(9), 1–24. https://doi.org/10.3390/su11092455
Zameer, H., Wang, Y., & Yasmeen, H. (2022). Green innovation as a mediator in the impact of business analytics and environmental orientation on green competitive advantage. Management Decision, 60(2), 488–507. https://doi.org/10.1108/MD-01-2020-0065
Zhang, D., Rong, Z., & Ji, Q. (2019). Green innovation and firm performance: Evidence from listed companies in China. Resources, Conservation & Recycling, 144, 48–55. https://doi.org/10.1016/j.resconrec.2019.01.023
Zhang, Y., Sun, J., Yang, Z., & Wang, Y. (2020). Critical success factors of green innovation: Technology, organization and environment readiness. Journal of Cleaner Production, 264, 1–9. https://doi.org/10.1016/j.jclepro.2020.121701
Abid, A., Shaique, M., & Anwar, M. (2018). Do big four auditors always provide higher audit quality? Evidence from Pakistan. International Journal of Financial Studies, 6(2), 1–22. https://doi.org/10.3390/ijfs6020058
Agustia, D., Permatasari, Y., Fauzi, H., & Sari, M. N. A. (2020). Research and development intensity, firm performance, and green product innovation. Journal of Security and Sustainability Issues, 9(3), 1039–1049. https://doi.org/10.9770/jssi.2020.9.3(27)
Agustia, D., Sawarjuwono, T., & Dianawati, W. (2019). The mediating effect of environmental management accounting on green innovation – firm value relationship. International Journal of Energy Economics and Policy, 9(2), 299–306. https://doi.org/10.32479/ijeep.7438
Agyabeng-Mensah, Y., Ahenkorah, E., Afum, E., Agyemang, A. N., Agnikpe, C., & Rogers, F. (2020). Examining the influence of internal green supply chain practices, green human resource management and supply chain environmental cooperation on firm performance. Supply Chain Management, 25(5), 585–599. https://doi.org/10.1108/SCM-11-2019-0405
Albort-Morant, G., Leal-Millán, A., & Cepeda-Carrión, G. (2016). The antecedents of green innovation performance: A model of learning and capabilities. Journal of Business Research, 69(11), 4912–4917. https://doi.org/10.1016/j.jbusres.2016.04.052
Anwar, M. (2018). Business model innovation and SMEs performance – does competitive advantage mediate? International Journal of Innovation Management, 1850057, 1–31. https://doi.org/10.1142/S1363919618500573
Anwar, M., Khan, S. Z., & Shah, S. Z. A. (2018). Big data capabilities and firm’s performance: A mediating role of competitive advantage. Journal of Information and Knowledge Management, 17(4). https://doi.org/10.1142/S0219649218500454
Ardyan, E., Nurtantiono, A., Istiyanto, B., & Rahmawan, G. (2017). Green Innovation capability as driver of sustainable competitive advantage and SMEs marketing. International Journal of Civil Engineering and Technology, 8(8), 1114–1122.
Arenhardt, D. L., Battistella, L. F., & Grohmann, M. Z. (2016). The influence of the green innovation in the search of competitive advantage of enterprises of the electrical and electronic Brazilian sectors. International Journal of Innovation Management, 20(1), 1–21. https://doi.org/10.1142/S1363919616500043
Arfi, W. B., Hikkerova, L., & Sahut, J. M. (2018). External knowledge sources, green innovation and performance. Technological Forecasting & Social Change, 129(August 2017), 210–220. https://doi.org/10.1016/j.techfore.2017.09.017
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Barney, J., Wright, M., & Ketchen, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625–641. https://doi.org/10.1177/014920630102700601
Cai, W., & Li, G. (2018). The drivers of eco-innovation and its impact on performance: Evidence from China. Journal of Cleaner Production, 176, 110–118. https://doi.org/10.1016/j.jclepro.2017.12.109
Chan, H. K., Yee, R. W. Y., Dai, J., & Lim, M. K. (2016). The moderating effect of environmental dynamism on green product innovation and performance. International Journal of Production Economics, 181, 384–391. https://doi.org/10.1016/j.ijpe.2015.12.006
Chang, C.-H., & Chen, Y.-S. (2013). Managing green brand equity: The perspective of perceived risk theory. Quality and Quantity, 48, 1753–1768. https://doi.org/10.1007/s11135-013-9872-y
Chang, C. (2011). The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation. Journal of Business Ethics, 104, 361–370. https://doi.org/10.1007/s10551-011-0914-x
Chariri, A., Nasir, M., Januarti, I., & Daljono, D. (2019). Determinants and consequences of environmental investment: An empirical study of Indonesian firms. Journal of Asia Business Studies, 13(3), 433–449. https://doi.org/10.1108/JABS-05-2017-0061
Chen, Y. K., Coviello, N., & Ranaweera, C. (2020). How does dynamic network capability operate? A moderated mediation analysis with NPD speed and firm age. Journal of Business & Industrial Marketing, 36(2). https://doi.org/10.1108/JBIM-01-2020-0050
Chen, Y., Lin, M. J., & Chang, C. (2009). Industrial marketing management the positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Management, 38(2), 152–158. https://doi.org/10.1016/j.indmarman.2008.12.003
Chiou, T. Y., Chan, H. K., Lettice, F., & Chung, S. H. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822–836. https://doi.org/10.1016/j.tre.2011.05.016
Chuang, M.-Y., Chen, C., & Lin, M. J. (2016). The impact of social capital on competitive advantage: The mediating effects of collective learning and absorptive capacity. Management Decision, 54(6), 1443–1463. https://doi.org/10.1108/MD-11-2015-0485
Dechant, K., Altman, B., Downing, R. M., Keeney, T., Swaine, A., Miller, R. A., & Post, J. (1994). Environmental leadership: Environmental compliance to from competitive advantage. Academy of Management Executive, 8(3), 7–27. https://doi.org/10.5465/ame.1994.9503101163
Do, B. (2020). The links between proactive environmental strategy, competitive advantages and firm performance: An empirical study in Vietnam. Sustainability, 12(4962), 1–22. https://doi.org/10.3390/su12124962
Doran, J., Ryan, G., Doran, J., & Ryan, G. (2012). Regulation and firm perception, eco-innovation and firm performance. European Journal of Innovation Management, 15(4), 421–443. https://doi.org/10.1108/14601061211272367
El-Kassar, A., & Kumar, S. (2017). Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices. Technological Forecasting & Social Change, 144, 483–498. https://doi.org/10.1016/j.techfore.2017.12.016
Ferreira, J., Cardim, S., & Coelho, A. (2020). Dynamic capabilities and mediating effects of innovation on the competitive advantage and firm’s performance: The moderating role of organizational learning capability. Journal of the Knowledge Economy, 12, 620–644. https://doi.org/10.1007/s13132-020-00655-z
Gao, Y., Wu, J., & Hafsi, T. (2017). The inverted U-Shaped relationship between corporate philanthropy and spending on research and development: A case of complementarity and competition moderated by firm size and visibility. Corporate Social Responsibility and Environmental Management, 24(6), 465–477. https://doi.org/10.1002/csr.1420
Ge, B., Yang, Y., Jiang, D., Gao, Y., Du, X., & Zhou, T. (2018). An empirical study on green innovation strategy and sustainable competitive advantages: Path and boundary. Sustainability, 10(10), 1–18. https://doi.org/10.3390/su10103631
Groenewegen, P., & Vergragt, P. (1991). Environmental issues as threats and opportunities in technological innovation. Technology Analysis and Strategic Management, 3(1), 43–55. https://doi.org/10.1080/09537329108524031
Gunasekaran, A., & Spalanzani, A. (2012). Sustainability of manufacturing and services: Investigations for research and applications. International Journal of Production Economics, 140(1), 35–47. https://doi.org/10.1016/j.ijpe.2011.05.011
Gürlek, M., & Tuna, M. (2017). Reinforcing competitive advantage through green organizational culture and green innovation. Service Industries Journal, 38(7–8), 1–25. https://doi.org/10.1080/02642069.2017.1402889
Handayani, R., Wahyudi, S., & Suharnomo, S. (2017). The effects of corporate social responsibility on manufacturing industry performance: The mediating role of social collaboration and green innovation. Business: Theory and Practice, 18, 152–159. https://doi.org/10.3846/btp.2017.016
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014. https://doi.org/10.5465/amr.1995.9512280033
Ho, Y., Wang, W. B., Shieh, W. L., Ho, Y., Wang, W. B., & Shieh, W. L. (2016). An empirical study of green management and performance in Taiwanese electronics firms. Cogent Business & Management, 3(1). https://doi.org/10.1080/23311975.2016.1266787
Hojnik, J., & Ruzzier, M. (2016). The driving forces of process eco-innovation and its impact on performance: Insights from Slovenia. Journal of Cleaner Production, 133, 812–825. https://doi.org/10.1016/j.jclepro.2016.06.002
Huang, X., Hu, Z., Liu, C., Yu, D., & Yu, L. (2016). The relationships between regulatory and customer pressure, green organizational responses, and green innovation performance. Journal of Cleaner Production, 112, 3423–3433. https://doi.org/10.1016/j.jclepro.2015.10.106
Jatiningrum, C., Abdul-Hamid, M. A., & Popoola, O. M. J. (2016). The impact of disclosure quality on corporate governance and earnings management: Evidence from companies in Indonesia. International Journal of Economics and Financial, 6(4S), 118–125.
Kamukama, N., Kyomuhangi, D. S., Akisimire, R., & Orobia, L. A. (2017). Competitive advantage mediator of managerial competence and financial performance of commercial bank in Uganda. African Journal of Economic and Management Studies, 8(2), 221–234. https://doi.org/10.1108/AJEMS-10-2016-0142
Kemlu. (2020). Indonesia Tegaskan Komitmen untuk SDGs, Konservasi Lingkungan dalam UNESCO General Conference. https://kemlu.go.id/portal/id/read/793/berita/indonesia-tegaskan-komitmen-untuk-sdgs-konservasi-lingkungan-dalam-unesco-general-conference
Khaksar, E., Abbasnejad, T., & Esmaeili, A. (2015). The effect of green supply chain management practices on environmental performance and competitive advantage: A case study of the cement industry. Technological and Economic Development of Economy, 4913(November). https://doi.org/10.3846/20294913.2015.1065521
Khaksar, E., Abbasnejad, T., Esmaeili, A., & Tamošaitienė, J. (2016). The effect of green supply chain management practices on environmental performance and competitive advantage: A case study of the cement industry. Technological and Economic Development of Economy, 22(2), 293–308. https://doi.org/10.3846/20294913.2015.1065521
Khan, P. A., & Johl, S. K. (2019). Nexus of comprehensive green innovation, environmental management system-14001-2015 and firm performance. Cogent Business & Management, 6(1). https://doi.org/10.1080/23311975.2019.1691833
Khazeal, B. K., & Majeed, M. H. (2020). The successive impact of the green organizational strategies and green innovation in enhancing the sustainable competitive advantage. Pervasive Health: Pervasive Computing Technologies for Healthcare, 2, 1222–1236. https://doi.org/10.4108/eai.28-6-2020.2297936
Koentjoro, S., & Gunawan, S. (2020). Managing knowledge, dynamic capabilities, innovative performance, and creating sustainable competitive advantage in family companies: A case study of a family company in Indonesia. Journal of Open Innovation, 6(3), 1–21. https://doi.org/10.3390/joitmc6030090
Kunapatarawong, R., & Martínez-Ros, E. (2016). Towards green growth: How does green innovation affect employment? Research Policy, 45(6), 1218–1232. https://doi.org/10.1016/j.respol.2016.03.013
Kuncoro, W., & Suriani, W. O. (2018). Achieving sustainable competitive advantage through product innovation and market driving. Asia Pacific Management Review, 23(3), 186–192. https://doi.org/10.1016/j.apmrv.2017.07.006
Kuo, S., Lin, P., & Lu, C. (2017). The effects of dynamic capabilities, service capabilities, competitive advantage, and organizational performance in container shipping. Transportation Research Part A, 95, 356–371. https://doi.org/10.1016/j.tra.2016.11.015
Kushwaha, G. S., & Sharma, N. K. (2015). Green initiatives: A step towards sustainable development and firm’s performance in the automobile industry. Journal of Cleaner Production, 121, 116–129. https://doi.org/10.1016/j.jclepro.2015.07.072
Lee, V.-H., Foo, A. T.-L., Leong, L.-Y., & Ooi, K.-B. (2016). Can competitive advantage be achieved through knowledge management? A case study on SMEs. Expert Systems With Applications, 65, 136–151. https://doi.org/10.1016/j.eswa.2016.08.042
Li, D., Zhao, Y., Zhang, L., Chen, X., & Cao, C. (2017). Impact of quality management on green innovation. Journal of Cleaner Production, 170, 462–470. https://doi.org/10.1016/j.jclepro.2017.09.158
Liao, Z. (2016). Temporal cognition, environmental innovation, and the competitive advantage of enterprises. Journal of Cleaner Production, 135, 1045–1053. https://doi.org/10.1016/j.jclepro.2016.07.021
Lin, Y., & Chen, Y. (2017). Determinants of green competitive advantage: The roles of green knowledge sharing, green dynamic capabilities, and green service innovation. Quality & Quantity, 51(4), 1663–1685. https://doi.org/10.1007/s11135-016-0358-6
Liu, Z., Li, X., Peng, X., Lee, S., Li, X., Peng, X., & Lee, S. (2019). Green or nongreen innovation? Different strategic preferences among subsidized enterprises with different ownership types. Journal of Cleaner Production, 245, 118786. https://doi.org/10.1016/j.jclepro.2019.118786
Ma, Y., Yin, Q., Pan, Y., Cui, W., Xin, B., & Rao, Z. (2018). Green product innovation and firm performance: Assessing the moderating effect of novelty-centered and efficiency-centered business model design. Sustainability, 10(6), 1–13. https://doi.org/10.3390/su10061843
Maury, B. (2018). Sustainable competitive advantage and profitability persistence: Sources versus outcomes for assessing advantage. Journal of Business Research, 84(October 2016), 100–113. https://doi.org/10.1016/j.jbusres.2017.10.051
Munsung, R., & Stephens, A. R. (2020). Innovation-orientated technology assimilation strategy and Korean SMES’ enhacing innovation capability, competitive advantage and firm performance. International Journal of Innovation Management, 24(6). https://doi.org/10.1142/S1363919620500814
Nadkarni, S., & Narayanan, V. K. (2007). Strategic schemas, strategic flexibility, and firm performance: The moderating role of industry clockspeed. Strategic Management Journal, 28(3), 243–270. https://doi.org/10.1002/smj.576
Nanath, K., & Pillai, R. R. (2017). The influence of green is practices on competitive advantage: Mediation role of green innovation performance. Information Systems Management, 34(1), 3–19. https://doi.org/10.1080/10580530.2017.1254436
Obeidat, U., Obeidat, B., Alrowwad, A., Alshurideh, M., Masa’deh, R., & Mohammad, A. (2020). The effect of intellectual capital on competitive advantage: The mediating role of innovation. Management Science Letters, 11, 1331–1344. https://doi.org/10.5267/j.msl.2020.11.006
Palcic, I., & Prester, J. (2020). Impact of advanced manufacturing technologies on green innovation. Sustainability, 12(8), 3499. https://doi.org/10.3390/su12083499
Palmer, M., & Truong, Y. (2017). The impact of technological green new product introductions on firm profitability. Ecological Economics, 136, 86–93. https://doi.org/10.1016/j.ecolecon.2017.01.025
Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
Porter, M. E. (1981). The contributions of industrial organization to strategic management. The Academy of Management Review, 6(4), 609–620. https://doi.org/10.2307/257639
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free press.
Potjanajaruwit, P. (2018). Competitive advantage effects on firm performance: A case study of startups in Thailand. Journal of International Studies, 11(3), 104–111. https://doi.org/10.14254/2071-8330.2018/11-3/9
Pratono, A. H., Darmasetiawan, N. K., Yudiarso, A., & Jeong, B. G. (2019). Achieving sustainable competitive advantage through green entrepreneurial orientation and market orientation: The role of inter-organizational learning. Bottom Line, 32(1), 2–15. https://doi.org/10.1108/BL-10-2018-0045
Reilly, C. A. O., & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: Resolving the innovator’s dilemma. Research in Organizational Behavior, 28, 185–206. https://doi.org/10.1016/j.riob.2008.06.002
Rennings, K. (2000). Redefining innovation – eco-innovation research and the contribution from ecological economics. Ecological Economics, 32(2), 319–332. https://doi.org/10.1016/S0921-8009(99)00112-3
Sellitto, A. M., Camfield, G. C., & Buzuku, S. (2020). Green innovation and competitive advantages in a furniture industrial cluster: A survey and structural model. Sustainable Production and Consumption, 23, 94–104. https://doi.org/10.1016/j.spc.2020.04.007
Singh, M. P., Chakraborty, A., & Roy, M. (2016). The link among innovation drivers, green innovation and business performance: Empirical evidence from a developing economy. World Review of Science, Technology and Sustainable Development, 12(4), 316–334. https://doi.org/10.1504/WRSTSD.2016.082191
Singh, S. K., Giudice, M. Del, Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting & Social Change, 150, 1–12. https://doi.org/10.1016/j.techfore.2019.119762
Singjai, K., Winata, L., & Kummer, T. (2018). Green initiatives and their competitive advantage for the hotel industry in developing countries. International Journal of Hospitality Management, 75, 131–143. https://doi.org/10.1016/j.ijhm.2018.03.007
Siswoyo, M., Kustyadji, G., Wijayani, A., & Hartati, W. (2020). Competitive advantage of environmental management and green innovation. Utopía y Praxis Latinoamericana, 25(10), 533–544.
Skordoulis, M., Ntanos, S., & Kyriakopoulos, G. L. (2020). Environmental innovation, open innovation dynamics and competitive advantage of medium and large-sized firms. Journal of Open Innovation, 6(4), 1–30. https://doi.org/10.3390/joitmc6040195
Somjai, S., Fongtanakit, R., & Laosillapacharoen, K. (2020). Impact of environmental commitment, environmental management accounting and green innovation on firm performance: An empirical investigation. International Journal of Energy Economics and Policy, 10(3), 204–210. https://doi.org/10.32479/ijeep.9174
Song, W., & Yu, H. (2017). Green innovation strategy and green innovation: The roles of green creativity and green organizational identity. Corporate Social Responsibility and Environmental Management, 25(2), 135–150. https://doi.org/10.1002/csr.1445
Srivastava, M., Franklin, A., & Martinette, L. (2013). Building a sustainable competitive advantage. Journal of Technology Management and Innovation, 8(2), 47–60. https://doi.org/10.4067/S0718-27242013000200004
Takalo, K. S., Tooranloo, S. H., & Parizi, S. Z. (2020). Green innovation: A systematic literature review. Journal of Cleaner Production, 279, 122474. https://doi.org/10.1016/j.jclepro.2020.122474
Tang, M., Walsh, G., Lerner, D., Fitza, M. A., & Li, Q. (2017). Green Innovation, managerial concern and firm performance: An empirical study. Business Strategy and the Environment, 27(1), 39–51. https://doi.org/10.1002/bse.1981
Tariq, A., Badir, Y. F., Tariq, W., & Bhutta, U. S. (2017). Drivers and consequences of green product and process innovation: A systematic review, conceptual framework and future outlook. Technology in Society, 51, 8–23. https://doi.org/10.1016/j.techsoc.2017.06.002
Tjahjadi, B., Soewarno, N., Hariyati, H., & Nafidah, L. N. (2020). The role of green innovation between green market orientation and business performance: Its Implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–18. https://doi.org/10.3390/joitmc6040173
Tseng, M., Wang, R., Chiu, A. S. F., Geng, Y., & Lin, Y. H. (2013). Improving performance of green innovation practices under uncertainty. Journal of Cleaner Production, 40, 71–82. https://doi.org/10.1016/j.jclepro.2011.10.009
Tu, Y., & Wu, W. (2020). How does green innovation improve enterprises’ competitive advantage? The role of organizational learning. Sustainable Production and Consumption, 26, 504–516. https://doi.org/10.1016/j.spc.2020.12.031
Tupamahu, K. H., Ghozali, I., & Hp, P. T. B. (2019). Lean management, competitive advantage, and firm performance: The role of management control systems (evidence from Indonesia manufacturing firms). Academic Journal of Interdisciplinary Studies, 8(3), 221–233. https://doi.org/10.36941/ajis-2019-0020
Ullah, A., Pinglu, C., Ullah, S., Zaman, M., & Haider, S. (2020). The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan. Heliyon, 6(8), 1–10. https://doi.org/10.1016/j.heliyon.2020.e04741
Vithessonthi, C., & Racela, O. C. (2016). Short-and long-run effects of internationalization and R&D intensity on firm performance. Journal of Multinational Financial Management, 34, 28–45. https://doi.org/10.1016/j.mulfin.2015.12.001
Wang, C. (2019). How organizational green culture influences green performance and competitive advantage: The mediating role of green innovation. Journal of Manufacturing Technology Management, 30(4), 666–683. https://doi.org/10.1108/JMTM-09-2018-0314
Weng, H. H. R., Chen, J. S., & Chen, P. C. (2015). Effects of green innovation on environmental and corporate performance: A stakeholder perspective. Sustainability, 7(5), 4997–5026. https://doi.org/10.3390/su7054997
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Wolf, C. A., Black, J. R., & Stephenson, M. W. (2020). Benchmarking upper midwest dairy farm profitability. Agricultural Finance Review, 80(5), 733–744. https://doi.org/10.1108/AFR-02-2020-0022
Xue, M., Boadu, F., & Xie, Y. (2019). The penetration of green innovation on firm performance: effects of Absorptive capacity and managerial environmental concern. Sustainability, 11(9), 1–24. https://doi.org/10.3390/su11092455
Zameer, H., Wang, Y., & Yasmeen, H. (2022). Green innovation as a mediator in the impact of business analytics and environmental orientation on green competitive advantage. Management Decision, 60(2), 488–507. https://doi.org/10.1108/MD-01-2020-0065
Zhang, D., Rong, Z., & Ji, Q. (2019). Green innovation and firm performance: Evidence from listed companies in China. Resources, Conservation & Recycling, 144, 48–55. https://doi.org/10.1016/j.resconrec.2019.01.023
Zhang, Y., Sun, J., Yang, Z., & Wang, Y. (2020). Critical success factors of green innovation: Technology, organization and environment readiness. Journal of Cleaner Production, 264, 1–9. https://doi.org/10.1016/j.jclepro.2020.121701