Eco-innovation and cleaner production as sustainable competitive advantage antecedents: the mediating role of green performance

Abstract

This main purpose of this study is to examine the relationship between eco-innovation (EI) and cleaner production (CP) variables and sustainable competitive advantage (SCA) with the mediating role of green performance (GP). In this study, data are collected from 196 Iranian SMEs using an email survey. The proposed hypotheses are tested using structural equation modelling (SEM). The results indicate that the EI and CP are related in different ways to the SCA in a firm. A positive relationship is observed between EI and GP and also between CP and GP. The results also show a sequential positive relationship from EI and CP via GP to the SCA of firms. Managers can use the findings to monitor and influence the EI and CP in a firm to increase overall firm green perform GP and finally achieve SCA. Earlier studies have shown a positive relationship between eco-innovation, cleaner production and firm's performance. However, the green performance and business sustainable competitive advantage were neglected.