The Impact of Green Innovation on Competitive Advantage
Abstract
This research on “The Impact of Green Innovation on Competitive Advantage” discusses the impact of the green innovation on competitive advantage and how to help businesses in building and sustaining competitive advantage. In business competition, companies are forced to maintain their position and strive to be superior to competitors. As competition grows, companies begin to explore various strategies as well as change strategies. The purpose of this research is to determine the impact of green innovation on competitive advantage. The research method used is a literature review study, by collecting relevant literature, journals, and books, then reading systematically, and critically reviewing the theoretical basis. PLS-SEM is used to analyze the quantitative approach with the Smart PLS program to produce the most optimal coefficients obtained. The findings of this research indicate that competitive advantage is influenced by the implementation of green innovation in companies. Companies that have implemented green innovation will improve the competitiveness of the company. There is a significant effect of green innovation on competitive advantage, namely direct and indirect effects of green innovation. Resource based and market driven views are used to provide an understanding of the importance of the application of sustainable green innovation in improving competitive advantage. This study contributes to providing awareness to the business community that green innovation has a significant impact on gaining greater competitive advantage. Companies need to be more thorough in developing product, process and strategic innovation strategies. Transformation will occur in the implementation of green innovation. Built competitive advantage will be difficult to imitate by other companies. Increased company performance is needed to face tight competition.
Keywords: Green Innovation, Competitive Advantage, Sustainability, Business Strategy, PLS-SEM, Market Position, Resource-Based View, Innovation Strategy.
