Green innovation as a mediator in the impact of business analytics and environmental orientation on green competitive advantage

Abstract

Purpose

The purpose of this paper is to investigate the role of business analytics and environmental orientation toward green innovation and green competitive advantage. In addition, the study aims to explore the mediating role of green innovation in the impact of business analytics and environmental orientation on green competitive advantage.

Design/methodology/approach

Based upon the theoretical analysis of existing literature, several hypotheses have been developed. Data was gathered using a survey method. The survey was conducted using online portal, 388 valid responses have been processed using SPSS 23.0 and AMOS 23.0 for empirical analysis. Two steps were used, first reliability and validity have been measured. Following this, the authors employed structural equation modeling technique to test hypothetical relationships.

Findings

The results from the authors’ empirical analysis indicate that business analytics and environmental orientation have a pivotal role toward green innovation as well as green competitive advantage. If the results are seen comparatively, then it can be indicated that the role of business analytics is more powerful compared with the environmental orientation. Although environmental orientation is a key factor of green innovation, but its direct role toward green competitive advantage is not so strong. Similarly, to check the other mechanisms, the role of green innovation as a mediator was explored. Empirical findings have established the mediating role of green innovation in the influence of business analytics and environmental orientation on green competitive advantage. Thus, the results confirm a mechanism of green innovation in the impact of business analytics and environmental orientation on green competitive advantage.

Practical implications

The study captures the attention of decision-makers and highlights that business leaders need to emphasize on business analytics while making managerial decisions related to green innovation and green competitive advantage.

Originality/value

For the first time, this study explored the role of business analytics and environmental orientation together toward green innovation and green competitive advantage. The study adds value to the existing literature and opens new avenues for scholarly research in the area of managerial decision-making.

Citation

Zameer, H., Wang, Y., Yasmeen, H. and Mubarak, S. (2022), "Green innovation as a mediator in the impact of business analytics and environmental orientation on green competitive advantage", Management Decision, Vol. 60 No. 2, pp. 488-507. https://doi.org/10.1108/MD-01-2020-0065