Abstract
Among the global warming issue and production process using machinery and modern technology, these Batik SMEs still strongly exist. This research aims at empirically proving the influence of green product competitiveness and green product success on green product innovation performance through green product competitiveness and green product success as the mediating variable. This research employs a survey approach and questionnaire to collect information related to the research samples. The quantitative approach in this research is conducted by testing the research hypotheses. 223 respondents consisting of Batik SMEs’ owners/ managers in Yogyakarta, Indonesia are taken as the samples with a purposive sampling method. The hypotheses test results show positive and significant correlation between green product innovation and green product competitiveness and green product success. Green process innovation positively, significantly influences green product competitiveness and green product success. Green product competitiveness positively, significantly influences green innovation performance. Green process success positively, significantly influences green innovation performance.
Highlights
Issues of business sustainability oriented to environmentally friendly operational activity become an interesting topic of research discussion among the business dynamics and escalating competitive advantage (Wang 2019; Soewarno et al 2019; Huang and Li 2018)
This study seeks to prove the influence of green product innovation and green process innovation on green product competitiveness, green product success, and green innovation performance empirically
The test of hypothesis which explains that green product innovation positively influences green product competitiveness is significantly proven
Summary
Issues of business sustainability oriented to environmentally friendly operational activity become an interesting topic of research discussion among the business dynamics and escalating competitive advantage (Wang 2019; Soewarno et al 2019; Huang and Li 2018). Corporate role becomes very important in creating innovative products which respond to customers’ expectation by creating peculiar, excellent and environmentally friendly products (green product innovation), so that they become company’s distinctive identity (Lee et al 2013). Green product innovation performance becomes corporate strategy to attract customers by adopting the issue of environmentally friendly production material utilization. Chang's study (2011) explains how important a business organization’s corporate environmental priority in achieving competitive advantage through green innovation process is. Some literatures and other empirical studies have recorded the correlation between innovation and environmental issue (Lin et al 2014), economic activity and environmental sustainability (Lavrinenko et al 2019)
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