Green product innovation and competitive advantage: an empirical study of chemical industrial plants in Jordanian qualified industrial zones

Abstract

PurposeGreen product innovation is a global industrial concern. This research examines the possible impact of green product innovation on firms' competitive advantage in industrial enterprises operating in qualified industrial zones (QIZs).Design/methodology/approachThis research follows a descriptive analytical methodology, testing two hypotheses formulated based on the reviewed literature among chemical industrial plants of the three Jordanian QIZs (Amman, Zarqa and Irbid) in Jordan. Following a preliminary scoping study of all 219 Jordanian chemical manufacturers, a quantitative five-point Likert scale questionnaire was administered to firms applying green product activities.FindingsIn total, 20 firms were found to be utilizing green product innovation, representing only 9.13% of the overall population. The hypothesis testing results indicated that green product innovation has a statistically significant positive impact on competitive advantage. The results also showed that the factor “firm resources” has a statistically significant positive moderation effect on the relationship between green product innovation and competitive advantage.Research limitations/implicationsThe vast majority of Jordanian chemical manufacturers were not implementing green innovation or practices; further study is needed to identify barriers. Findings are limited to managers of chemical industrial plants in Jordan, excluding the demand side (e.g. plant customers who purchase final products), which leaves a different research angle to be explored.Originality/valueThis is a pioneering study of green product innovation implications for firm competitive advantage in manufacturing enterprises, especially in QIZs of Jordan (which offer tax exemptions to foreign and local investors and sell products to regional and international markets).