Assessing The Role Of Competitive Advantage Between Green Supply Chain Management, Green Innovation And Firm Performance

Abstract

Concern for the environment by using green technology will produce environmentally friendly products that can create competitive advantages and improve firm performance. This study examines the mediating role of competitive advantage between the effect of green supply chain management and green innovation on firm performance. This type of research is quantitative research. The population in this study is the Company Performance Rating Program (PROPER) companies listed on the Indonesia Stock Exchange for the 2015-2020 period. The sample in this study was obtained through the purposive sampling method. Namely, there are annual reports and financial reports, so 255 companies were obtained. This study uses STATA 16 to test the data of this research. The results of this study prove that green supply chain management has no effect on firm performance, green innovation has no effect on firm performance, green supply chain management has no effect on competitive advantage, green innovation has no effect on competitive advantage, a competitive advantage does not mediate the effect of green supply chain management on firm performance, and competitive advantage mediates the effect of green innovation on firm performance. The implications of this study guide for companies to be able to apply green technology based industry to be able to create competitive advantage and improve firm performance.