Firms are finding it increasingly important to leverage social media to facilitate knowledge access, get valuable feedback, and improve innovations to cater for emerging markets. However, using social media without integrating other key factors does not seem to add value to innovation efforts. Therefore, this study investigates the potential of social media usage (SMU) in enhancing green product innovation (GPI) and how two types of environmental collaboration may affect that relationship, which is a subject that has been under-explored. First, the literature on the expansion of the use of social media in enhancing GPI was reviewed to develop the theoretical framework and hypotheses. Then, data collected from 211 manufacturing firms were analysed using structural equation modelling to examine the proposed relationship. The results revealed that SMU does not directly influence GPI. Rather, internal environmental collaboration (IEC) and environmental collaboration with suppliers (ECS) fully mediate the relationship between SMU and GPI. The results further disclosed a positive relationship between IEC and ECS, where both types of environmental collaboration seem to be key factors in improving GPI. Hence, this study highlights the importance of knowledge sharing through environmental collaborations for the generation of ideas to improve products in order to remain competitive in the market.
Achieving and sustaining competitive advantage is a goal among firms, but it is increasingly challenging in a rapid changing and sophisticated environment. Most of the environmental management undertaken by firms in developing countries are not able to increase the competitive advantage of the product. Hence, this study investigates proactive capabilities that need to be developed in a dynamic environment where it involves green product innovation, environmental proactivity, alliance pro-activeness, and knowledge-based dynamic capabilities that impact on competitive advantage performance. This study involved a survey of 157 manufacturing firms with ISO 14001 certification throughout Malaysia. By implementing structural equation modelling approach, the results provided evidence of positive and significant direct effects of green product innovation and environmental pro-activity on firm’s competitive advantage. The relationship of alliance pro-activeness was fully mediated by the presence of knowledge-based dynamic capabilities as a condition to survive and prosper in a competitive market.
The development of innovative green products that can compete in unpredictable markets is a challenge for manufacturing firms. Hence, firms need to reconfigure their strategies by considering and strengthening the appropriate set of internal capabilities to achieve effective green product development. Therefore the initiatives implemented by firms in relation to their green practices and green innovation are attracting increasing scholarly attention. However, thus far only a few studies have explicitly explored the relationship between the proactive capabilities of manufacturing firms in the context of green product innovation. Thus, this study investigates the environmental proactivity (EP) and strategic flexibility (SF) of firms, and how these proactive capabilities affect green product innovation (GPI). In addition, it explores the role of GPI in enhancing product competitive advantage (PCA). The data for this study was obtained from 157 respondents representing manufacturing firms in Malaysia. Structural equation modelling was used for the statistical analysis. The results showed that SF partially mediates the relationship between EP and GPI, which indicates that SF facilitates GPI implementation. The results also revealed that GPI acts as a full mediator between SF and PCA, proving that GPI is the crucial factor that can translate SF into competitive advantage. Thus, based on the dynamic capabilities perspective, this study offers insights into the importance of flexibility and innovation in the context of green manufacturing as a means to enhance green product features and remain competitive in the market.
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