Role of Green Organizational Culture, Green Innovation Strategy, and Environmental Regulations in Predicting Green Performance and Competitive Advantage Through Green Innovation

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Management, Payame Noor University, Tehran, Iran

2 Master of Business Administration, Department of Management, Payame Noor University, Tehran, Iran

Abstract

Environmental issues are increasingly important to manufacturing industries, and decision-makers are faced with increasing public sensitivity, strict environmental regulations, and growing stakeholder pressure, in addition to other fundamental issues, such as global warming and soil erosion. Therefore, the current research was conducted with the aim of investigating the role of green organizational culture, green innovation strategy, and environmental regulations in predicting green performance and competitive advantage through green innovation in Milad Tile Company of Yazd. For this purpose, using a descriptive-survey research method and available sampling, 118 employees of this company were selected as the statistical sample of the research. The tools for data collection were standard questionnaires, and to measure the variable of green organizational culture, the standard questionnaire of Banerjee et al. (2003) and Fraj et al. (2011) was used; for the green innovation strategy variable, the standard questionnaire of Song and Yu (2018); for the environmental regulation variable, the standard questionnaire of Yang et al. (2017); for the green innovation variable, the standard questionnaires of Chen (2008), Chen et al. (2006), and Roper & Tapinos (2016); for the green performance variable, the standard questionnaire of Yu et al. (2017); and for the competitive advantage variable, the standard questionnaires of Chandler & Hanks (1994) and Zhou et al. (2009) were used. The hypotheses were tested using the structural equation modeling method. The research findings showed that green organizational culture and environmental regulations improve green innovation. Green organizational culture also improves green performance and competitive advantage. Additionally, the results showed that green innovation improves green performance, and that green organizational culture and environmental regulations improve green performance through the mediating variable of green innovation. Environmental regulations also improve competitive advantage through the mediating variable of green innovation. Finally, it was suggested that Milad Tile Company of Yazd should pay more attention to green innovation strategies in its overall strategy, and also that more focus should be placed on environmental considerations in the organizational culture of the company.

Keywords

Main Subjects


Abid, S. K., Sulaiman, N., Chan, S. W., Nazir, U., Abid, M., Han, H., Ariza-Montes, A., & Vega-Muñoz, A. (2021). “Toward an integrated disaster management approach: How artificial intelligence can boost disaster management”. Sustainability, 13(22), 1-17.
Alvesson, M., & Empson, L. (2008). “The construction of organizationalidentity: comparative case studies of consulting firms”. Scandinavian Journal ofManagement, 24(1), 1-16.
Ar, I. M. (2012). “The impact of green product innovation on firm performance and competitive capability: the moderating role of managerial environmental concern”. Procedia-Social and Behavioral Sciences, 62, 854-864.
Aragón-Correa, J.A. and Sharma, S. (2003). “A contingent resource-based view of proactive corporate environmental strategy”. Academy of Management Review, 28(1), 71-88.
Asadi, S., Pourhashemi, S. O., Nilashi, M., Abdullah, R., Samad, S., Yadegaridehkordi, E., ... & Razali, N. S. (2020). “Investigating influence of green innovation on sustainability performance: A case on Malaysian hotel industry”. Journal of cleaner production, 258(4), 120860.
Awaliyah, H., & Haryanto, B. (2022). “The Influence of Green Organizational Culture, Green Innovation, and Environmental Performance on Competitive Advantage Moderated by Green Supply Chain Management (Case Study on SME in Solo Raya) ”. Int. J. Innov. Sci. Res. Technol, 7(3), 191-199.
Banerjee, S.B., Iyer, E.S. and Kashyap, R.K. (2003). “Corporate environmentalism: antecedents and influence of industry type”. Journal of Marketing, 67(2), 106-122.
Bansal, P. (2003). “From issues to actions: the importance of individual concerns and organizational values in responding to natural environmental issues”. Organization Science, 14(5), 510-527.
Chakraborty, D., & Biswas, W. (2020). “Going green with green HRM practices–A strategic initiative for reinvigorating performance optimization in companies. Prabandhan”. Indian Journal of Management, 13(10-11), 8-26.
Chandler, G. N., & Hanks, S. H. (1994). “Market attractiveness, resource-based capabilities, venture strategies, and venture performance”. Journal of business venturing, 9(4), 331-349.
Chandra, K., Arafah, W., & Basri, Y. Z. (2021). “Analysis of the effect of green organizational culture on organizational performance and competitive advantages of green through green innovation in manufacturing industries”. Journal of Hunan University Natural Sciences, 48(6), 112-121.
Chang, C. H. (2011). “The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation”. Journal of Business Ethics, 104(3), 361-370.
Chen, Y.-S. (2008). “The driver of green innovation and green imageegreen core competence”. J. Bus. Ethics, 81(3), 531-543.
Chen, C. H. (2011). “The major components of corporate social responsibility”. Journal of global responsibility, 2(1), 85-99.
Chen, Y.-S., Lai, S.-B., Wen, C.-T., (2006). “The influence of green innovation performance on corporate advantage in Taiwan”. J. Bus. Ethics, 67(4), 331e339.
Chen, F., Ngniatedema, T., & Li, S. (2018). “A cross-country comparison of green initiatives, green performance and financial performance”. Management Decision, 56(5), 1008-1032.
Cherrafi, A., Garza-Reyes, J. A., Kumar, V., Mishra, N., Ghobadian, A., & Elfezazi, S. (2018). “Lean, green practices and process innovation: A model for green supply chain performance”. International Journal of Production Economics, 206(3), 79-92.
Dangelico, R.M. (2016). “Green product innovation: where we are and where we are going”. Bus. Strat. Environ. 25 (8), 560e576.
Dangelico, R.M., Pujari, D. (2010). “Mainstreaming green product innovation: why and how companies integrate environmental sustainability”. J. Bus. Ethics, 95(3), 471-486.
David, F. R. (2006). “Strategic management: concept and cases” (S. Rahoyo (ed); 10th ed). Jakarta : Salemba Empat.
Eiadat, Y., Kelly, A., Roche, F. and Eyadat, H. (2008). “Green and competitive? An empirical test of the mediating role of environmental innovation strategy”. Journal of World Business, 43(2), 131-145.
El-Kassar, A. N., & Singh, S. K. (2019). “Green innovation and organizational performance: the influence of big data and the moderating role of management commitment and HR practices”. Technological Forecasting and Social Change, 144(2), 483-498.
Fergusson, H. and Langford, D. (2006). “Strategies for managing environmental issues in construction organizations Engineering”. Construction and Architectural Management, 13(2), 171-185.
Fraj, E., Martínez, E. and Matute, J. (2011). “Green marketing strategy and the firm’s performance: the moderating role of environmental culture”. Journal of Strategic Marketing, 19(4), 339-355.
Gurlek M., & Muharem T. (2018). “Reinforcing Competitive Advantage through Green Organizational Culture and Green Innovation”. The Service Industriel Journal, 38(7-8), 467–491.
Gürlek, M., Tuna, M. (2018). “Reinforcing competitive advantage through green organizational culture and green innovation”. Serv. Ind. J, 38 (7-8), 467-491.
Hart, S.L. (1995). “A natural-resource-based view of the firm”. Academy of Management Review, 20(4), 986-1014.
Hoffmann, E. (2007). “Consumer integration in sustainable product development”. Business Strategy and the Environment,16(5), 322-338.
Imran, M., Arshad, I., & Ismail, F. (2021). “Green organizational culture and organizational performance: The mediating role of green innovation and environmental performance”. Jurnal Pendidikan IPA Indonesia, 10(4), 515-530.
Imran, M., & Ismail, F. (2020). “The Dimensions of Organizational Culture Influence on Organizational Performance in Pakistan's Public Banking Sector”. In International Conference on Industrial Engineering and Operations Management, Singapore.
Küçükoğlu, M. T., & Pınar, R. İ. (2018). “The mediating role of green organizational culture between sustainability and green Innovation: A research in Turkish companies”. Business & Management Studies,6 (1), 64-85.
Kushwaha, G.S. and Sharma, N.K. (2016). “Green initiatives: a step towards sustainable development and firm’s performance in the automobile industry”. Journal of Cleaner Production, 121(1), 116-129.
Leonard-Barton, D. (1995). “Wellsprings of knowledge: building and sustaining the sources of innovation”. Harvard Business School Press, Boston, MA.
Leonidou, L.C., Fotiadis, T.A., Christodoulides, P., Spyropoulou, S. and Katsikeas, C.S. (2015). “Environmentally friendly export business strategy: its determinants and effects on competitive advantage and performance”. International Business Review, 24(5), 798-811.
Li, Y. (2014). “Environmental innovation practices and performance: moderating effect of resource commitment”. J. Clean. Prod, 66(4), 450e458.
Li, D., Huang, M., Ren, S., Chen, X., & Ning, L. (2018). “Environmental legitimacy, green innovation, and corporate carbon disclosure: Evidence from CDP China 100”. Journal of Business Ethics, 150(4), 1089-1104.
Li, R., & Ramanathan, R. (2018). “Exploring the relationships between different types of environmental regulations and environmental performance: Evidence from China”. Journal of Cleaner Production, 196(2), 1329-1340.
Menguc, B. and Ozanne, L.K. (2005). “Challenges of the ‘green imperative’: a natural resource-based approach to the environmental orientation–business performance relationship”. Journal of Business Research, 58(4), 430-438.
Michaelis, T.L., Aladin, R. and Pollack, J.M. (2018). “Innovation culture and the performance of new product launches: a global study”. Journal of Business Venturing Insights, 9(2), 116-127.
Muisyo, P. K., & Qin, S. (2021). “Enhancing the FIRM’S green performance through green HRM: The moderating role of green innovation culture”. Journal of Cleaner Production, 289(4), 125720.
Nidumolu, R., Prahalad, C.K., Rangaswami, M.R. (2009). “Why sustainability is now the key driver of innovation”. Harv. Bus. Rev, 87(9), 56-64.
O’Regan, N. and Ghobadian, A. (2005). “Innovation in SMEs: the impact of strategic orientation and environmental perceptions”. International Journal of Productivity and Performance Management, 54(2), 81-97.
Özsomer, A., Calantone, R.J. and Di Bonetto, A. (1997). “What makes firms more innovative? A look at organizational and environmental factors”. Journal of Business and Industrial Marketing, 12(6), 400-416.
Perez-Valls, M., Cespedes-Lorente, J., & Moreno-Garcia, J. (2016). “Green practices and organizational design as sources of strategic flexibility and performance”. Business Strategy and the Environment, 25(8), 529-544.
Pham, N. T., & Tuckova, Z. (2018). “Green human resource management practices in the hospitality sector”. In International Conference on Tourism Research (pp. 219-X). Academic Conferences International Limited.
Porter, M., & Van der Linde, C. (1995). “Green and competitive: ending the stalemate. Dyn. Eco Efficient Econ”. Environ. Regul. Compet. Adv, 33.
Qi, G., Shen, L., Zeng, S., Jorge, O.J., (2010). “The drivers for contractors’ green innovation: an industry perspective”. J. Clean. Prod, 18(14), 1358-1365.
Qi, G., Zeng, S., Li, X. & Tam, C. (2012). “Role of internalization process in defining the relationship between ISO 14001 certification and corporate environmental performance”. Corporate Social Responsibility and Environmental Management, 19(3), 129-140.
Qu, X., Khan, A., Yahya, S., Zafar, A. U., & Shahzad, M. (2022). “Green core competencies to prompt green absorptive capacity and bolster green innovation: the moderating role of organization’s green culture”. Journal of Environmental Planning and Management, 65(3), 536-561.
Rao, P. & Holt, D. (2005). “Do green supply chains lead to competitiveness and economic performance? ”. International Journal of Operations and Production Management, 25(9), 898-916.
Roper, S., Tapinos, E., (2016). “Taking risks in the face of uncertainty: an exploratory analysis of green innovation”. Technol. Forecast. Soc. Change, 112(3), 357-363.
Roscoe, S., Subramanian, N., Jabbour, C. J., & Chong, T. (2019). “Green human resource management and the enablers of green organisational culture: Enhancing a firm's environmental performance for sustainable development”. Business Strategy and the Environment, 28(5), 737-749.
Sepahvand, R., Sepahvand, M., Arefnezhad, M., & Nazarpouri, A. H. (2020). “The effect of green HRM practices on green innovation with the mediating role of green organizational culture”. Organizational Culture Management, 20(1), 71-100.
Shahzad, M., Qu, Y., Javed, S. A., Zafar, A. U., & Rehman, S. U. (2020). “Relation of environment sustainability to CSR and green innovation: A case of Pakistani manufacturing industry”. Journal of Cleaner Production, 253(1), 119938.
Singh, R.K., Luthra, S., Mangla, S.K., Uniyal, S., (2019). “Applications of information and communication technology for sustainable growth of SMEs in India food industry”. Resour. Conserv. Recycl. 147(2), 10-18.
Skordoulis, M., Kyriakopoulos, G., Ntanos, S., Galatsidas, S., Arabatzis, G., Chalikias, M., & Kalantonis, P. (2022). “The Mediating Role of Firm Strategy in the Relationship between Green Entrepreneurship, Green Innovation, and Competitive Advantage: The Case of Medium and Large-Sized Firms in Greece”. Sustainability, 14(6), 3286.
Song, W., & Yu, H. (2018). “Green innovation strategy and green innovation: The roles of green creativity and green organizational identity”. Corporate Social Responsibility and Environmental Management, 25(2), 135-150.
Soewarno, N., Tjahjadi, B., & Fithrianti, F. (2019).“Green innovation strategy and green innovation: the roles of green organizational identity and environmental organizational legitimacy”. Manag. Decis, 57(11), 3061-3078.
Tahir, R., Athar, M. R., Faisal, F., & Solangi, B. (2019). “Green organizational culture: A review of literature and future research agenda”. Annals of Contemporary Developments in Management & HR (ACDMHR), Print ISSN, 2632-7686.
Tang, L., Shi, J., Yu, L., Bao, Q. (2017). “Economic and environmental influences of coal resource tax in China: a dynamic computable general equilibrium approach”. Resour, Conserv. Recycl, 117(4), 34-44.
Wang, C. H. (2019). “How organizational green culture influences green performance and competitive advantage: The mediating role of green innovation”. Journal of Manufacturing Technology Management, 30(4), 666-683.
Wang, C. H., & Juo, W. J. (2021). “An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability”. Business Strategy and the Environment, 30(7), 3241-3254.
 Yang, M.G.M., Hong, P., Modi, S.B. (2011). “Impact of lean manufacturing and environmental management on business performance: an empirical study of manufacturing firms”. International Journal of production economics, 129(2), 251-261.
Yang, Z., Sun, J., Zhang, Y. and Wang, Y. (2017). “Green, green, it’s green: a triad model of technology, culture, and innovation for corporate sustainability”. Sustainability, 9(8), 1-23.
Yu, W., Ramanathan, R. and Nath, P. (2017). “Environmental pressures and performance: an analysis of the roles of environmental innovation strategy and marketing capability”. Technological Forecasting and Social Change, 117(1), 160-169.
Zhao, N., Liu, X., Pan, C., & Wang, C. (2021). “The performance of green innovation: From an efficiency perspective”. Socio-Economic Planning Sciences, 78(3), 101062.
Zhou, K.Z., Brown, J.R. and Dev, C.S. (2009). “Market orientation, competitive advantage, and performance: a demand-based perspective”. Journal of Business Research, 62(11), 1063-1070.