Green Innovation as a Strategic Driver of Competitive Advantage: Mediating and Moderating Effects of Green Corporate Image and Firm Resources

Abstract

The study aims to examine the impact of green innovation on competitive advantage, focusing on the mediating role of green corporate image and the moderating role of firm resources. The simple random sampling technique was employed, and a self-administered structured questionnaire was distributed among 323 managers in green apparel organizations in Sri Lanka. The data were analyzed using structural equation modeling techniques. The findings confirmed that while green innovation significantly enhances competitive advantage, the green corporate image partially mediates the relationship, and Firm resources do not significantly moderate the relationship between green innovation and competitive advantage. This study provides a unique theoretical contribution by integrating the resource-based view, the elaboration likelihood model, and the contingency model, and it strengthens these theories by offering empirical evidence. Further, this is original in its combined investigation of four constructs within a single framework.