Aug 2026· International Journal of Applied Business and International Management· Vol 11, pp. 1036-1055· 0 citations
Abstract
The property industry is increasingly pressured to convert innovation and sustainability practices into measurable business outcomes, yet evidence on how this conversion occurs in regional markets remains scarce. This study examines the effects of innovation capability and green innovation on business performance through competitive advantage in the property industry of the Special Region of Yogyakarta (DIY). A quantitative explanatory design was applied using 141 project-level responses from active landed housing projects, analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that innovation capability has a strong positive effect on competitive advantage (β = 0.835, p < 0.001), and competitive advantage positively affects business performance (β = 0.591, p < 0.001). Competitive advantage demonstrates indirect-only mediation between innovation capability and business performance (β = 0.493, p < 0.001). In contrast, green innovation does not significantly affect competitive advantage or business performance. These findings confirm the Resource-Based View (RBV) by showing that internal resources must be converted into a competitive advantage to improve performance, and they also expose how green innovation underperforms in a cost-sensitive regional market.
In unstable and technologically advanced marketplaces, Micro, Small, and Medium-Sized Enterprises (MSMEs) are under growing pressure to maintain a competitive edge. Using environmental dynamism as a moderating variable and strategic innovation as a mediating variable, this study investigates the impact of dynamic capacities on sustainable competitive advantage among Indonesian MSMEs. MSMEs in manufacturing and creative services sectors were chosen for high exposure to process adaptation, customer experience changes, product renewal, and competition in digital markets. This study, based on the Dynamic Capabilities View, employed a quantitative explanatory design, drawing on 320 usable responses from top managers and MSME owners in Jabodetabek, Bandung, Surabaya, and Yogyakarta. Structural Equation Modeling-Partial Least Squares (SEM-PLS) was used to examine data. The findings demonstrate that strategic innovation (beta = 0.618; p < 0.001) and competitive advantage (beta = 0.342; p < 0.001) are significantly impacted by dynamic capability. Strategic innovation partially mediates the association between dynamic capability and sustainable competitive advantage (indirect effect = 0.279; VAF = 45%) and has a favorable impact on sustainable competitive advantage (beta = 0.451; p < 0.001). Strategic innovation and dynamic capability are positively correlated with environmental dynamism (interaction beta = 0.186; p = 0.002). By elucidating how sensing, seizing, and reconfiguring skills are transformed into sustained competitive advantage through strategic innovation in emerging-market MSMEs, these findings expand the Dynamic Skills View. In practical terms, the results advise MSME owners to develop straightforward market intelligence procedures, expedite innovation-driven decision-making, and reallocate resources through collaborations, digital platforms, and process improvements.
Nuzleha, Khairul Saleh, Reza Pahlepi· Journal of Economics and Man...· 0 citations
This study aims to analyze the effects of green accounting, green innovation, and green competitive advantage on sustainable performance in the hospitality industry in East Kalimantan Province. Using a quantitative approach, primary data were collected from the entire population of hotel managers in the region and analyzed using Partial Least Squares-based Structural Equation Modeling (PLS-SEM). The results of the study reveal that: (1) Green accounting has no significant effect on sustainability performance (P = 0.826), indicating that the allocation of environmental costs is still limited to short-term administrative compliance; (2) Green innovation has a positive and significant effect on sustainability performance (p = 0.000), proving that environmentally friendly product and process innovations are effective in reducing waste;
(3) Green competitive advantage has a positive and significant effect and is the most dominant determinant of sustainability performance (p = 0.000, path coefficient = 0.628). The implications of this study confirm that hotel management must transform its ecological commitment into a market differentiation strategy in order to achieve holistic sustainability.
Penelitian ini bertujuan untuk menganalisis pengaruh akuntansi hijau, inovasi hijau, dan keunggulan kompetitif hijau terhadap kinerja keberlanjutan di industri perhotelan di Provinsi Kalimantan Timur. Dengan menggunakan pendekatan kuantitatif, data primer dikumpulkan dari seluruh populasi manajer hotel di wilayah tersebut dan dianalisis menggunakan Pemodelan Persamaan Struktural berbasis Partial Least Squares (PLS-SEM). Hasil penelitian menunjukkan bahwa: (1) Akuntansi hijau tidak memiliki pengaruh signifikan terhadap kinerja keberlanjutan (P = 0,826), menunjukkan bahwa alokasi biaya lingkungan masih terbatas pada kepatuhan administratif jangka pendek; (2) Inovasi hijau memiliki pengaruh positif dan signifikan terhadap kinerja keberlanjutan (p = 0,000), membuktikan bahwa inovasi produk dan proses yang ramah lingkungan efektif dalam mengurangi limbah; (3) Keunggulan kompetitif hijau memiliki pengaruh positif dan signifikan serta merupakan penentu paling dominan terhadap kinerja keberlanjutan (p = 0,000, koefisien jalur = 0,628). Implikasi dari penelitian ini menegaskan bahwa manajemen hotel harus mengubah komitmen ekologisnya menjadi strategi diferensiasi pasar untuk mencapai keberlanjutan holistik.
Haris Masri, Yana Ulfah, F. Khairin· JURNAL ECONOMINA· 0 citations
This study aims to examine the mediating role of green process innovation in the relationship between financial resources, ESG risk ratings, and environmental performance among Indonesian manufacturing firms. Employing a quantitative approach with partial least squares structural equation modeling (PLS‐SEM), the analysis is based on data from 125 publicly listed manufacturing firms on the Indonesia Stock Exchange during the 2019–2022 period. The results reveal that financial resources positively influence both green process innovation and environmental performance, whereas ESG risk ratings exert a negative impact on both. Green process innovation significantly mediates the effects of financial resources and ESG risk on environmental performance. These findings underscore the strategic importance of process‐level innovation as a conduit through which internal resources and external stakeholder pressures can be transformed into improved environmental outcomes. Theoretically, this study extends the resource‐based view, stakeholder theory, and the do no significant harm (DNSH) principle by showing that green process innovation is a strategic mechanism that transforms internal resources into better environmental performance and offers practical implications for promoting sustainable industrial transformation in emerging economies.
Andreani Hanjani, Abdul Rohman, RR Karlina Aprilia Kusumadewi et al.· Business Strategy and the En...· 0 citations
The growing necessity for sustainability has made environmental performance a vital concern for Micro, Small, and Medium Enterprises (MSMEs), especially within the service industry. This research explores the impact of Fintech Innovation and Green Transformational Leadership on Corporate Environmental Performance (CEP), with Green Innovation acting as a mediator. A quantitative method was employed to gather data from 180 MSMEs in the service sector in Indonesia, which were then analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings suggest that Fintech Innovation greatly improves Green Innovation, yet has no direct impact on CEP. Green Transformational Leadership has a beneficial effect on both Green Innovation and Corporate Environmental Performance (CEP). Additionally, Green Innovation entirely mediates the connection between Fintech Innovation and CEP, while it partially mediates the relationship between Green Transformational Leadership and CEP. These results highlight the significance of combining digital resources with leadership-focused environmental dedication to promote sustainable methods. The research enhances Ecological Modernization Theory and the Ability-Motivation-Opportunity (AMO) framework, providing actionable insights for MSMEs, policymakers, and Fintech providers to facilitate green transformation.
Fauzan Abdul Rizki, Raihan Putera Ramadhan, Idi Jahidi· 2026 11th International Conf...· 0 citations
Amidst profound structural disruptions driven by value chain digitalization and stringent environmental sustainability mandates, the global manufacturing landscape exposes a critical innovation paradox where technological advancements frequently fail to guarantee market resilience. Grounded in the synthesis of the Resource-Based View (RBV) and Dynamic Capability Theory (DCT), this study investigates the causal mechanisms linking product innovation, competitive advantage, and firm performance. Employing a quantitative explanatory design, primary empirical data were acquired from 230 strategic management personnel at PT LocknLock Indonesia and rigorously evaluated using variance-based Partial Least Squares Structural Equation Modeling (PLS-SEM). The empirical estimation reveals a counterintuitive reality: product innovation exerts no significant direct impact on firm performance. Instead, the structural model demonstrates that dynamic capabilities operate as an indispensable full mediator for product innovation and a partial mediator for competitive advantage, collectively explaining a substantial 82.0% of the variance in firm performance. These findings decisively dismantle deterministic linear commercialization assumptions, proving that latent innovation assets inevitably devolve into sunk costs without the institutional agility to sense macro-environmental disruptions, seize omnichannel ecosystems, and reconfigure legacy operational architectures. Ultimately, this research dictates a strategic paradigm shift for corporate executives, urging a pivot from exclusive investments in product engineering toward the aggressive cultivation of dynamic governance to secure long-term economic sustainability.
Firdausy Nisa Azizy· Journal of Strategic Innovat...· 0 citations
Purpose: This study examines the mediating role of green innovation in the relationship between green intellectual capital and green culture on competitive advantage in the hotel industry in Bali, Indonesia.
Methodology: A causal-explanatory research design was employed, with data collected from 106 managers of three- to five-star hotels using purposive sampling technique. The study is grounded in the Natural Resource-Based View, and the data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS).
Results: The findings indicate that green intellectual capital and green culture have a positive and significant effect on green innovation. Green innovation has a strong, positive, and significant impact on competitive advantage. Green innovation also significantly mediates the relationship between green intellectual capital and green culture on competitive advantage, indicating a full mediation. Control variables such as gender and hotel classification had no significant effect on competitive advantage.
Conclusions: Green innovation functions as a crucial dynamic capability that converts intangible environmental resources, such as knowledge assets and cultural values, into tangible competitive advantages.
Limitations: This study is limited by its sample size of 106 respondents and its focus on three- to five-star hotels in Bali, which may restrict the generalizability of the findings to other regions or hotel types.
Contributions: This study contributes to the literature by extending the application of the Natural Resource-Based View in the hospitality sector. Practically, it highlights the importance of prioritizing green innovation as a key mechanism for leveraging intellectual capital and green culture to achieve sustainable competitive advantage.
Ayu Aryista Dewi, K. Saputra· Studi Akuntansi Keuangan dan...· 0 citations