THE PUBLIC ROLE OF GREEN PERFORMANCE AND COMPETITIVE ADVANTAGES ON SUSTAINABILITY: ANALYSIS OF THE IMPORTANCE OF GREEN ORGANIZATIONAL CULTURE AND GREEN INNOVATION IN COMPANIES
Abstract
Due to globalization and rapid technological development, improving efficiencies in a production system and an environmental management system at the same time is critical to long-term sustainability. This study tried to examine the relationship between some Green Company Concepts such as Green Organizational Culture, Green Innovation, and Green Performances and Competitive Advantage, as well as Sustainable Performances. This study gathered the data from 101 companies that are working in different sectors such as food production, education, pharmacy, and others. This study uses a quantitative approach and regression in analyzing process. The results show that Green Organizational Culture has a significant positive impact on Green Innovation. Green Innovation also has a significant positive impact on both Green Performance and Competitive Advantage. This study also proves that both Green Performance and Competitive Advantage have a significant positive impact on Sustainable Performance. The conclusion, contribution, and limitations are also discussed.
Downloads
References
Abeysekara, N., Wang, H., & Kuruppuarachchi, D. (2019). Effect of supply-chain resilience on firm performance and competitive advantage: A study of the Sri Lankan apparel industry. Business Process Management Journal, 25(7), 1673–1695. https://doi.org/10.1108/BPMJ-09-2018-0241
Afum, E., Agyabeng-Mensah, Y., & Owusu, J. A. (2020). Translating Environmental Management Practices into Improved Environmental Performance via Green Organizational Culture: Insight from Ghanaian Manufacturing SMEs. Journal of Supply Chain Management System, 9(1), 31–49.
Afum, E., Agyabeng-Mensah, Y., Sun, Z., Frimpong, B., Kusi, L. Y., & Acquah, I. S. K. (2020). Exploring the link between green manufacturing, operational competitiveness, firm reputation and sustainable performance dimensions: a mediated approach. In Journal of Manufacturing Technology Management (Vol. 31, Issue 7, pp. 1417–1438). https://doi.org/10.1108/JMTM-02-2020-0036
Aggarwal, P., & Agarwala, T. (2021). Green Organizational Culture: An Exploration of Dimensions. Global Business Review, 097215092110498. https://doi.org/10.1177/09721509211049890
Agyabeng-Mensah, Y., Ahenkorah, E., Afum, E., & Owusu, D. (2020). The influence of lean management and environmental practices on relative competitive quality advantage and performance. Journal of Manufacturing Technology Management, 31(7), 1351–1372. https://doi.org/10.1108/JMTM-12-2019-0443
Albort-Morant, G., Henseler, J., Leal-Millán, A., & Cepeda-Carrión, G. (2017). Mapping the Field: A Bibliometric Analysis of Green Innovation. Sustainability, 9(6), 1011. https://doi.org/10.3390/su9061011
Amrutha, V. N., & Geetha, S. N. (2020). A systematic review on green human resource management: Implications for social sustainability. Journal of Cleaner Production, 247, 119131. https://doi.org/10.1016/j.jclepro.2019.119131
Anning-Dorson, T. (2018). Innovation and competitive advantage creation. International Marketing Review, 35(4), 580–600. https://doi.org/10.1108/IMR-11-2015-0262
Anwar, M., Rehman, A. U., & Shah, S. Z. A. (2018). Networking and new venture’s performance: mediating role of competitive advantage. International Journal of Emerging Markets, 13(5), 998–1025. https://doi.org/10.1108/IJoEM-07-2017-0263
Begum, S., Ashfaq, M., Xia, E., & Awan, U. (2022). Does green transformational leadership lead to green innovation? The role of green thinking and creative process engagement. Business Strategy and the Environment, 31(1), 580–597. https://doi.org/10.1002/bse.2911
Boiral, O., & Paillé, P. (2012). Organizational Citizenship Behaviour for the Environment: Measurement and Validation. Journal of Business Ethics, 109(4), 431–445. https://doi.org/10.1007/s10551-011-1138-9
Bradley, P., Parry, G., & O’Regan, N. (2020). A framework to explore the functioning and sustainability of business models. Sustainable Production and Consumption, 21, 57–77. https://doi.org/10.1016/j.spc.2019.10.007
Caiado, R. G. G., Quelhas, O. L. G., Nascimento, D. L. de M., Anholon, R., & Leal Filho, W. (2019). Towards sustainability by aligning operational programmes and sustainable performance measures. Production Planning & Control, 30(5–6), 413–425. https://doi.org/10.1080/09537287.2018.1501817
Chandra, K., Arafah, W., & Basri, Y. Z. (2021). Analysis of the Effect of Green Organizational Culture on Organizational Performance and Competitive Advantages of Green through Green Innovation in Manufacturing Industries. In Journal of Hunan University（Natural Sciences）.
Chaudhary, R. (2020). Green Human Resource Management and Employee Green Behavior: An Empirical Analysis. Corporate Social Responsibility and Environmental Management, 27(2), 630–641. https://doi.org/10.1002/csr.1827
Ching-Hsun Chang. (2015). Proactive and reactive corporate social responsibility: antecedent and consequence. In Management Decision (Vol. 53, Issue 2, pp. 451–468).
Christensen, H. K. (2010). Defining customer value as the driver of competitive advantage. Strategy and Leadership, 38(5), 20–25. https://doi.org/10.1108/10878571011072048
Chu, Z., Wang, L., & Lai, F. (2019). Customer pressure and green innovations at third party logistics providers in China. In The International Journal of Logistics Management (Vol. 30, Issue 1, pp. 57–75). https://doi.org/10.1108/ijlm-11-2017-0294
Distanont, A., & Khongmalai, O. (2018). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences. https://doi.org/10.1016/j.kjss.2018.07.009
El-Kassar, A. N., & Singh, S. K. (2019). Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices. In Technological Forecasting and Social Change (Vol. 144, pp. 483–498). https://doi.org/10.1016/j.techfore.2017.12.016
García-Machado, J. J., & Martínez-Ávila, M. (2019). Environmental Performance and Green Culture: The Mediating Effect of Green Innovation. An Application to the Automotive Industry. Sustainability, 11(18), 4874. https://doi.org/10.3390/su11184874
Gürlek, M., & Tuna, M. (2018). Reinforcing competitive advantage through green organizational culture and green innovation. The Service Industries Journal, 38(7–8), 467–491. https://doi.org/10.1080/02642069.2017.1402889
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications.
Hair Jr, J., Hult, G. T., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). In Sage.
Isensee, C., Teuteberg, F., Griese, K.-M., & Topi, C. (2020). The relationship between organizational culture, sustainability, and digitalization in SMEs: A systematic review. Journal of Cleaner Production, 275, 122944. https://doi.org/10.1016/j.jclepro.2020.122944
Ismail, H., El Irani, M., & Kertechian, K. S. (2021). Green HRM and nongreen outcomes: the mediating role of visionary leadership in Asia. International Journal of Manpower. https://doi.org/10.1108/IJM-04-2020-0162
Jia, J., Liu, H., Chin, T., & Hu, D. (2018). The continuous mediating effects of GHRM on employees’ green passion via transformational leadership and green creativity. In Sustainability (Switzerland) (Vol. 10, Issue 9). https://doi.org/10.3390/su10093237
Jr, J. F. H., Black, W. C., Babin, B. J., Anderson, R. E., Black, W. C., & Anderson, R. E. (2018). Multivariate Data Analysis. https://doi.org/10.1002/9781119409137.ch4
Kiyabo, K., & Isaga, N. (2020). Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures. Journal of Innovation and Entrepreneurship, 9(1), 12. https://doi.org/10.1186/s13731-020-00123-7
Kolenikov, S., Steinley, D., & Thombs, L. (2010). Statistics in the Social Sciences: Current Methodological Developments. In Statistics in the Social Sciences: Current Methodological Developments. https://doi.org/10.1002/9780470583333
Leech, N. L., Barrett, K. C., & Morgan, G. A. (2005). SPSS for Intermediate Statistics: Use and Interpretation. Lawrence Erlbaum Associates, Inc., Publishers.
Lestari, S. D., Leon, F. M., Widyastuti, S., Brabo, N. A., & Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. Journal of Asian Finance, Economics and Business, 7(6), 365–378. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.365
Lo-Iacono-Ferreira, V. G., Capuz-Rizo, S. F., & Torregrosa-López, J. I. (2018). Key Performance Indicators to optimize the environmental performance of Higher Education Institutions with environmental management system – A case study of Universitat Politècnica de València. Journal of Cleaner Production, 178, 846–865. https://doi.org/10.1016/j.jclepro.2017.12.184
Luu, T. T. (2020). Integrating green strategy and green human resource practices to trigger individual and organizational green performance: the role of environmentally-specific servant leadership. Journal of Sustainable Tourism, 28(8), 1193–1222. https://doi.org/10.1080/09669582.2020.1729165
Malik, S. Y., Cao, Y., Mughal, Y. H., Kundi, G. M., Mughal, M. H., & Ramayah, T. (2020). Pathways towards Sustainability in Organizations: Empirical Evidence on the Role of Green Human Resource Management Practices and Green Intellectual Capital. Sustainability, 12(8), 3228. https://doi.org/10.3390/su12083228
Mishra, P. (2017). Green human resource management: A framework for sustainable organizational development in an emerging economy. In International Journal of Organizational Analysis (Vol. 25, Issue 5, pp. 762–788). https://doi.org/10.1108/IJOA-11-2016-1079
Mousa, S. K., & Othman, M. (2020). The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of Cleaner Production, 243, 118595. https://doi.org/10.1016/j.jclepro.2019.118595
Muktiono, E., & Soediantono, D. (2022). Literature Review of ISO 14001 Environmental Management System Benefits and Proposed Applications in the Defense Industries. Journal of Industrial Engineering & Management Research, 3(2), 1–12. https://doi.org/https://doi.org/10.7777/jiemar.v3i2.271
Newbert, S. L. (2008). Value, rareness, competitive advantage, and performance. In Strategic Management Journal (Vol. 29, pp. 745–768).
Peteraf, M. A., & Barney, J. B. (2003). Unraveling The Resource-Based Tangle. Wiley InterScience, 24, 309–323.
Pham, N. T., Phan, Q. P. T., Tučková, Z., Vo, N., & Nguyen, L. H. L. (2018). Enhancing the organizational citizenship behavior for the environment: the roles of green training and organizational culture. Management & Marketing, 13(4), 1174–1189. https://doi.org/10.2478/mmcks-2018-0030
Popescu Nicoleta, Matt, W., & Steffen, K. (2020). Importance of Innovation Process for the Organizations. https://doi.org/10.47310/iarjbm.2021.v02i01.008
Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Maxwell Macmilla Canada. https://doi.org/10.1007/978-3-319-54540-0
Radu, M. (2012). Empirical Study on the Indicators of Sustainable Performance – the Sustainability Balanced Scorecard, Effect of Strategic Organizational Change. Amfiteatru Economic Journal, 14(32), 451–469.
Ren, S., Jiang, K., & Tang, G. (2022). Leveraging green HRM for firm performance: The joint effects of CEO environmental belief and external pollution severity and the mediating role of employee environmental commitment. Human Resource Management, 61(1), 75–90. https://doi.org/10.1002/hrm.22079
Rhee, M., & Stephens, A. R. (2020). Innovation-Orientated Technology Assimilation Strategy and Korean SMEs’ Enhancing Innovation Capability, Competitive Advantage and Firm Performance. International Journal of Innovation Management, 24(06), 2050081. https://doi.org/10.1142/S1363919620500814
Saeidi, P., Saeidi, S. P., Sofian, S., Saeidi, S. P., Nilashi, M., & Mardani, A. (2019). The impact of enterprise risk management on competitive advantage by moderating role of information technology. Computer Standards & Interfaces, 63, 67–82. https://doi.org/10.1016/j.csi.2018.11.009
Saunila, M., Nasiri, M., Ukko, J., & Rantala, T. (2019). Smart technologies and corporate sustainability: The mediation effect of corporate sustainability strategy. Computers in Industry, 108, 178–185. https://doi.org/10.1016/j.compind.2019.03.003
Shi, J., Huang, W., Han, H., & Xu, C. (2021). Pollution control of wastewater from the coal chemical industry in China: Environmental management policy and technical standards. Renewable and Sustainable Energy Reviews, 143, 110883. https://doi.org/10.1016/j.rser.2021.110883
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 and Social Change, 150, 119762. https://doi.org/10.1016/j.techfore.2019.119762
Sobaih, A. E. E., Hasanein, A., & Elshaer, I. (2020). Influences of Green Human Resources Management on Environmental Performance in Small Lodging Enterprises: The Role of Green Innovation. Sustainability, 12(24), 10371. https://doi.org/10.3390/su122410371
Song, W., Yu, H., & Xu, H. (2021). Effects of green human resource management and managerial environmental concern on green innovation. European Journal of Innovation Management, 24(3), 951–967. https://doi.org/10.1108/EJIM-11-2019-0315
Tang, M., Walsh, G., Lerner, D., Fitza, M. A., & Li, Q. (2018). Green Innovation, Managerial Concern and Firm Performance: An Empirical Study. In Business Strategy and the Environment (Vol. 27, Issue 1, pp. 39–51). https://doi.org/10.1002/bse.1981
The Importance of Environmental Awareness When Running a Business. (n.d.). Maryville University. https://online.maryville.edu/blog/importance-of-environmental-awareness-when-running-a-business/
Tian, M., Deng, P., Zhang, Y., & Salmador, M. P. (2018). How does culture influence innovation? A systematic literature review. Management Decision, 56(5), 1088–1107. https://doi.org/10.1108/MD-05-2017-0462
Tuan, L. T. (2021). Effects of environmentally-specific servant leadership on green performance via green climate and green crafting. Asia Pacific Journal of Management, 38(3), 925–953. https://doi.org/10.1007/s10490-019-09687-9
Udriyah, Tham, J., & Ferdous Azam, S. M. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile smes. In Management Science Letters (Vol. 9, Issue 9, pp. 1419–1428). https://doi.org/10.5267/j.msl.2019.5.009
Verma, P., & Kumar, V. (2021). Developing leadership styles and green entrepreneurial orientation to measure organization growth: a study on Indian green organizations. Journal of Entrepreneurship in Emerging Economies. https://doi.org/10.1108/JEEE-01-2021-0035
Wang, C.-H. (2019). How organizational green culture influences green performance and competitive advantage. Journal of Manufacturing Technology Management, 30(4), 666–683. https://doi.org/10.1108/JMTM-09-2018-0314
Wijaya, P. Y., & Suasih, N. N. R. (2020). The effect of knowledge management on competitive advantage and business performance: a study of silver craft smes. Entrepreneurial Business and Economics Review, 8(4), 105–121. https://doi.org/10.15678/EBER.2020.080406
Wilcox, R. (2017). Modern Statistics for the Social and Behavioral Sciences: A Practical Introduction (2nd ed.). CRC Press: Taylor Francis Group.
Yacob, P., Wong, L. S., & Khor, S. C. (2019). An empirical investigation of green initiatives and environmental sustainability for manufacturing SMEs. Journal of Manufacturing Technology Management, 30(1), 2–25. https://doi.org/10.1108/JMTM-08-2017-0153
Yang, Z., Sun, J., Zhang, Y., & Wang, Y. (2017). Green, Green, It’s Green: A Triad Model of Technology, Culture, and Innovation for Corporate Sustainability. Sustainability, 9(8), 1369. https://doi.org/10.3390/su9081369
Yu, W., Ramanathan, R., & Nath, P. (2017). Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability. Technological Forecasting and Social Change, 117, 160–169. https://doi.org/10.1016/j.techfore.2016.12.005
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Noor Faezah, J., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. In Journal of Cleaner Production (Vol. 249). https://doi.org/10.1016/j.jclepro.2019.119334
Zameer, H., Wang, Y., & Yasmeen, H. (2020). Reinforcing green competitive advantage through green production, creativity and green brand image: Implications for cleaner production in China. Journal of Cleaner Production, 247. https://doi.org/10.1016/j.jclepro.2019.119119
Zhou, X., Xu, Z., Yao, L., Tu, Y., Lev, B., & Pedrycz, W. (2018). A novel Data Envelopment Analysis model for evaluating industrial production and environmental management system. In Journal of Cleaner Production (Vol. 170, pp. 773–788). https://doi.org/10.1016/j.jclepro.2017.09.160
Copyright (c) 2022 Tjatur Ermitajani Judi, Achluddin Ibnu Rochim, Arif Darmawan
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
The DiA journal allows authors to retain the copyright of their papers without limitation. Authors may grant publishers non-exclusive publishing rights to publish articles. Granting first publishing rights to publishers also qualifies as unlimited copyright (because there are no restrictions imposed by publishers on author copyright).
