THE IMPACT OF GREEN INNOVATION ON PERFORMANCE AND COMPETITIVE ADVANTAGE: TOP MANAGEMENT COMMITMENT AS MODERATOR

Abstract

The primary objective of study is to investigate effect of green innovations on firms' performance & competitive advantage. Top management's long-term support is a prerequisite for the effective implementation of the green innovation initiatives. Hence, second objective is to highlight moderating role of top management commitment. 350 duly filled questionnaires were received with response rate of 70%. The results of SEM analysis performed in Smart PLS show that green innovation practices significantly contribute to the financial performance, environmental performance, and competitive advantage of firms working in food and beverage industry. Moreover, the findings of this study reveal that top management commitment to green initiatives enhances the impact of green innovation practices. Environment ethics, green product development innovation, green process innovation, and market demand for green products, all contribute to environmental performance of firms. The study offers significant results and suggests that policymakers support green innovation initiatives by providing financial and technical resources for achieving desired sustainable development & growth of firms.