The Effect of Green Innovation on Innovation Performance and Competitive Advantage : the Mediation Role of Managerial Environmental Concern (Case Study of Batik SMEs in Pekalongan)

Abstract

The purpose of this study is to find out about green innovation which is divided into green product innovation and green process innovation on innovation performance and competitive advantage, as well as knowing the managerial environmental concern relationship as a mediation in the relationship between green innovation and innovation performance and competitive advantage. This study uses a sampling method in the form of non-probability sampling with as much purposive sampling of 32 respondents. The analytical method used is SEM (Structural Equation Modeling) with the PLS (Partial Least Square) approach. The results of the analysis state that there is no influence between green product innovation and green process innovation and innovation performance, between green process innovation and competitive advantage, between innovation performance and competitive advantage. There is a positive influence between green product innovation on competitive advantage. In addition, managerial environmental concerns mediate the relationship between green product innovation and green process innovation and innovation performance, managerial environmental concerns do not mediate the relationship between green product innovation and green process innovation with competitive advantage.