HOW DOES THE GREEN COMPETITIVE ADVANTAGE OF BUILDING A SUSTAINABLE PALM OIL INDUSTRY? THE ROLE OF GREEN INNOVATIONS AS A MEDIATION

Abstract

This study aims to analyze how green intellectual capital (GIC), green organization culture (GOC), and green information technology and system (GIT) impact corporate sustainability (CS) through green competitive advantage (GCA) with green innovation (GI) as an intervening variable. This study used a partial least squares structural equation model (PLS-SEM) model to test the conceptual model using SmartPLS version 3 on a sample of 220 employees in the palm oil industry of PT Astra Agro Lestari Tbk. The result shows that GIC, GOC, and GIT have an effect on GI and GCA, and further, GCA has proven to affect CS. Therefore, the Oil Palm Corporate that can create GI will get GCA and CS. Thus, it will increase the image of the company. Furthermore, applying GIC, GOC, and GIT will improve the application of GI, thereby reducing carbon emissions and the impact of environmental damage due to the company’s business processes. Therefore, companies with GI continuously will improve the quality of green and have GCA. The relevant article also proclaimed comparable research conclusions. GI contributes positively to developing a competitive advantage for the company (Maziriri & Maramura, 2022).