Just go green: The effect of green innovation on competitive advantage with the moderating role of ‘access to finance’

Abstract

Goal: This study explores the connection between green innovation components and the competitive advantage of the manufacturing sector in China through the mediating role of green organizational culture and the moderating role of access to finance. Methodology: A self-administered survey with 310 respondents was used to collect data from the industrial sector. Data were examined using SmartPLS, and a bootstrapping method was used. Results: The findings demonstrated that the suggested moderated mediation model was accepted because the associations between the constructs were statistically significant. The mediating effect of green organizational culture and the moderating effect of access to finance were performed. The results showed that the proposed moderated mediation model was accepted because the relationships between the constructs were statistically significant. The results of the data analysis supported a positive relationship between green innovation and competitive advantage as well as a mediating effect of green organizational culture. Limitations: The study is limited to the Chinese economy; hence future studies can replicate these results on developing and developed economies. Furthermore, large sample size, different industrial sector and more advance analysis techniques can also be used in future studies. Practical Implications: The study has practical implication of green innovation and green organizational culture in enhancing competitive advantage in the Chinese manufacturing sector, considering access to finance. Originality / Value: This study contributes to the current vain of literature by examining the noval connection between competitive advantage and green innovation components of manufacturing sector in China through the mediating role of green organizational culture and the moderating role of access to finance.