Green innovation and competitiveness: empirical evidence from Ecuadorian manufacturing

Abstract

Purpose: The purpose of this study is to explore green innovation and its role in driving competitiveness in Ecuadorian manufacturing firms, focusing on structural equation modelings, which account for more than 90% of the productive units and aggregate national income. The manufacturing sector in Ecuador reports variable growth since the start of the COVID pandemic, drawing more attention from practitioners, regulators and scholars alike, due to its distinctive footprint on people, profit and planet, particularly in the context of developing economies. Design/methodology/approach: A model with two second-order constructs is developed and tested in a sample of 325 managers from manufacturing firms in Ecuador, using quantitative and cross-section methods. Findings: After obtaining adjusted and validated metrics, a structural equation model is presented, where the main hypothesis is confirmed, supporting the positive impact of green innovation on competitiveness. Practical implications: The research provides evidence on how manufacturing firms favoring green innovation in their long-term planning can unlock and sustain competitiveness. Policymakers could then offer incentives for firms to embed sustainable practices, with potential ripple effects along the supply chain, aggregating up competitiveness to industry and national levels. Originality/value: The study aims to bridge the existing knowledge gap on the interplay of green innovation and competitiveness, claiming that the former significantly influences the latter, in an emerging market context, with incremental gains for all stakeholders, as posited by stakeholder theory.