Green Practices Implementation as Prerequisite to Sustain Firm Competitive Advantages

Abstract

Encompassing firms to apply green policy in a holistic management practices are strongly required in order to maintain competitive advantages and experience long-term marketing performance. This current empirical research is aimed to fill the lack of empirical findings and empirical studies on firm's innovative concept. Green-based product innovation, green management practices and green corporate image are presented as the antecedents and postulated as the sources of sustaining firm competitive advantages. A questionnaire-based survey was deployed to collect data from Large Scale Enterprises in Indonesia with Top Management, Operational and Marketing Managers served as respondents. 500 questionnaires were mailed and 388 were valid for further analysis. Data was analyzed by using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) via AMOS statistical software. Statistical findings demonstrated that green-based product innovation, green management practices and green corporate image significantly has a positive affect to sustain firm competitive advantages which is led to enhance long term marketing performance. However, green-based product innovation plays insignificant direct relationship on long term marketing performance. This study discusses some managerial implications for enterprises and recommendations on a basis of green implementation.

Entrepreneurship Orientation, Eco-innovation, Information and Communication Technology (ICT) Learning Adoption Capability: A case Study of Food SME’s in Central Java, Indonesia

“…Other studies also reveal that integrating eco-innovation in firm strategy is able to enhance the firm's marketing performance [1,24]. H5: Eco-innovation has a positive and significant impact on marketing performance.…”

“…Previous studies reveal that the use of ICT improves eco-innovation and firm performance significantly; furthermore the use of ICT enhances the organization performance [1,18,19]. The adoption of ICT plays an imperative role in promoting a firm's marketing performance.…”

“…Previous studies revealed that there are relationships between entrepreneurship orientation and marketing performance, those connections are moderated by green company or ecoinnovation performance [1,2]. In contrast, some studies reveal that entrepreneurship orientation does not have a relationship with the company performance and marketing performance [3,4].…”

“…The indicators of entrepreneurship orientation both of internal and external locus of control can be elaborated as risk taker, proactive action, aggressive and competitive action [6][7][8]. Entrepreneurship orientation also incorporates cultural development, new product and service development, technological advancement and green business issues [1,9]. Entrepreneurship orientation does not only deal with the individual entrepreneur per se, but also deals with the business environment influencing the entrepreneurs.…”

“…The eco-innovation is a method based on life-cycle and value added innovation activities incorporating technology-based products as well as non-technology products. The production processes, management, services, and new way of business are manifested in the use of life cycle assessment to result in minimizing risk of pollution, including negative impact in using resources and energy [1,10]. Furthermore, the researchers stated that ecoinnovation consists of organization novelty that has less negative impact on the environment such as change in values, beliefs, norms, knowledge and management activities including change in administration, institutions, regulation and governance systems.…”