Influence of eco‐product innovation and firm reputation on corporate social responsibility and competitive advantage: A mediation‐moderation analysis

Abstract

Eco‐product innovation is a response to environmental legislation and social responsibility movements. Established agricultural manufacturers must figure out how to use green ideas and reputation to compete for business excellence. This study adopted a knowledge‐based approach to examine corporate social responsibility and competitive advantage. This study also examined how eco‐product innovation and reputation affect firms' competitive advantage. The proposed model was tested on 427 Nigerian agro‐allied manufacturers using causal pathways and structural equation modeling. Business competition is directly and indirectly affected by corporate social responsibility, eco‐product innovations, and firm reputation. Additionally, eco‐product innovation partially mediated the nexus between corporate social responsibility and competitive advantage, while reputation moderated the influence of eco‐product innovation. The findings suggest that manufacturers pursuing green initiatives should strive to participate in an eco‐friendly competition and deal with policy pressures in order to meet environmental standards. Overall, this study adds the environment and business competition to the idea of innovation.