Just go green

the effect of green innovation on competitive advantage with the moderating role of ‘access to finance’


  • Saqib Ali COMSATS university (CUI), Islamabad, Pakistan.
  • Mohammed Degan University Utara Malaysia (UUM), Kedah, Malaysia.
  • Abdullah Omar Emerson University Multan (EUM), Multan, Pakistan. https://orcid.org/0000-0001-6320-4295
  • Aram Jawhar Mohammad Erbil Polytechnic University (EPU), Erbil, Iraq.




Green Innovation, green organization culture, access to finance, competitive advantage and SMEs


Goal: This study explores the connection between green innovation components and the competitive advantage of the manufacturing sector in China through the mediating role of green organizational culture and the moderating role of access to finance.

Methodology: A self-administered survey with 310 respondents was used to collect data from the industrial sector. Data were examined using SmartPLS, and a bootstrapping method was used.

Results:  The findings demonstrated that the suggested moderated mediation model was accepted because the associations between the constructs were statistically significant. The mediating effect of green organizational culture and the moderating effect of access to finance were performed. The results showed that the proposed moderated mediation model was accepted because the relationships between the constructs were statistically significant. The results of the data analysis supported a positive relationship between green innovation and competitive advantage as well as a mediating effect of green organizational culture.

Limitations:  The study is limited to the Chinese economy; hence future studies can replicate these results on developing and developed economies. Furthermore, large sample size, different industrial sector and more advance analysis techniques can also be used in future studies.

Practical Implications: The study has practical implication of green innovation and green organizational culture in enhancing competitive advantage in the Chinese manufacturing sector, considering access to finance.

Originality / Value: This study contributes to the current vain of literature by examining the noval connection between competitive advantage and green innovation components of manufacturing sector in China through the mediating role of green organizational culture and the moderating role of access to finance.


Download data is not yet available.

Author Biography

Aram Jawhar Mohammad, Erbil Polytechnic University (EPU), Erbil, Iraq.


Abbas, J. & Dogan, E. (2022), "The impacts of organizational green culture and corporate social responsibility on employees’ responsible behaviour towards the society", Environmental Science and Pollution Research, Vol. 29, No. 40, pp. 60024-60034. Available at: https://doi.org/10.1007/S11356-022-20072-W.

Abbas, J. & Khan, S.M. (2023), "Green knowledge management and organizational green culture: an interaction for organizational green innovation and green performance", Journal of Knowledge Management, Vol. 27, No. 7, pp. 1852-1870. Available at: https://doi.org/10.1108/JKM-03-2022-0156/FULL/XML.

Abderzag, F.T. (2021), "Markets and the creation of competitive advantages in companies according to an internal marketing orientation", International Journal of Advanced and Applied Sciences, Vol. 8, No. 10, pp. 93-107. Available at: https://doi.org/10.21833/ijaas.2021.10.011.

Abu Seman, N.A., Govindan, K., Mardani, A., Zakuan, N., Mat Saman, M.Z., Hooker, R.E. & Ozkul, S. (2019), "The mediating effect of green innovation on the relationship between green supply chain management and environmental performance", Journal of Cleaner Production, Vol. 229, pp. 115-127. Available at: https://doi.org/10.1016/J.JCLEPRO.2019.03.211.

Adegboye, A.C. & Iweriebor, S. (2018), "Does Access to Finance Enhance SME Innovation and Productivity in Nigeria? Evidence from the World Bank Enterprise Survey", African Development Review, Vol. 30, No. 4, pp. 449-461. Available at: https://doi.org/10.1111/1467-8268.12351.

Ali, S., Poulova, P., Akbar, A., Muhammad, H., Javed, U. & Danish, M. (2020), "Determining the Influencing Factors in the Adoption of Solar Photovoltaic Technology in Pakistan: A Decomposed Technology Acceptance Model Approach", Economies, Vol. 8, No. 4, Page 108. Available at: https://doi.org/10.3390/ECONOMIES8040108.

Ali, S., Ullah, H., Akbar, M., Akhtar, W. & Zahid, H. (2019), "Determinants of Consumer Intentions to Purchase Energy-Saving Household Products in Pakistan", Sustainability, Vol. 11, No. 5, Page 1462. Available at: https://doi.org/10.3390/SU11051462.

Amadasun, D.O.E. & Mutezo, A.T. (2022), "Influence of access to finance on the competitive growth of SMEs in Lesotho", Journal of Innovation and Entrepreneurship, Vol. 11, No. 1, pp. 1-20. Available at: https://doi.org/10.1186/S13731-022-00244-1/TABLES/5.

Anuar, M.M., Omar, K. & Ali, A. (2017), "The influence of internal factors on consumer’s green consumption behavior", International Journal of Advanced and Applied Sciences, Vol. 4, No. 12, pp. 238-242. Available at: https://doi.org/10.21833/ijaas.2017.012.041.

Baker, W.E., Mukherjee, D. & Gattermann Perin, M. (2022), "Learning orientation and competitive advantage: A critical synthesis and future directions", Journal of Business Research, Vol. 144, pp. 863-873. Available at: https://doi.org/10.1016/J.JBUSRES.2022.02.003.

Barney, J. (1991), "Firm Resources and Sustained Competitive Advantage", Journal of Management, Vol. 17, No. 1, pp. 99-120. Available at: https://doi.org/10.1177/014920639101700108.

Bashir, U., Khan, S., Jones, A. et al. (2021), "Do banking system transparency and market structure affect financial stability of Chinese banks?", Econ Change Restruct, Vol. 54, pp. 1-41. Available at: https://doi.org/10.1007/s10644-020-09272-x.

Benson, M.H. & Craig, R.K. (2014), "The End of Sustainability", Society & Natural Resources, Vol. 27, No. 7, pp. 777-782. Available at: https://doi.org/10.1080/08941920.2014.901467.

Bilal, A.R., Fatima, T., Iqbal, S. & Imran, M.K. (2022), "I can see the opportunity that you cannot! A nexus between individual entrepreneurial orientation, alertness, and access to finance", European Business Review, Vol. 34, No. 4, pp. 556-577. Available at: https://doi.org/10.1108/EBR-08-2021-0186/FULL/PDF.

Cohen, J. (1988), "The Analysis of Variance and Covariance", Statistical Power Analysis for the Behavioral Sciences, pp. 273-380.

Comrey, A.L. & Lee, H.B. (2013), A First Course in Factor Analysis. Psychology Press. Available at: https://doi.org/10.4324/9781315827506.

Coutinho, P.B., Silva, N., Fulgêncio, C., Canas, Â. & Alcobia, S. (2018), "Environmental management practices for the sustainable development of a new city in Mozambique", Brazilian Journal of Operations & Production Management, Vol. 15, No. 1, pp. 112-126. Available at: https://doi.org/10.14488/BJOPM.2018.v15.n1.a10.

Crane, A. (1997), "Rhetoric and Reality in the Greening of Organisational Culture", In Greening the Boardroom, pp. 129-144. Routledge. Available at: https://doi.org/10.4324/9781351283489-9.

Delmas, M. & Toffel, M.W. (2004), "Stakeholders and environmental management practices: an institutional framework", Business Strategy and the Environment, Vol. 13, No. 4, pp. 209-222. Available at: https://doi.org/10.1002/BSE.409.

Dutta, A. & Banerjee, S. (2018), "Does microfinance impede sustainable entrepreneurial initiatives among women borrowers? Evidence from rural Bangladesh", Journal of Rural Studies, Vol. 60, pp. 70-81. Available at: https://doi.org/10.1016/J.JRURSTUD.2018.03.007.

Falk, R.F. & Miller, N.B. (1992), A Primer for Soft Modeling.

Fernández, E., Junquera, B. & Ordiz, M. (2010), "Organizational culture and human resources in the environmental issue: a review of the literature", The International Journal of Human Resource Management, Vol. 14, No. 4, pp. 634-656. Available at: https://doi.org/10.1080/0958519032000057628.

Fornell, C. & Larcker, D.F. (1981), "Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics", Journal of Marketing Research, Vol. 18, No. 3, pp. 382-388. Available at: https://doi.org/10.1177/002224378101800313.

Gürlek, M. & Tuna, M. (2017), "Reinforcing competitive advantage through green organizational culture and green innovation", The Service Industries Journal, Vol. 38, No. 7-8, pp. 467-491. Available at: https://doi.org/10.1080/02642069.2017.1402889.

Hair, J.F., Ringle, C.M. & Sarstedt, M. (2014), "PLS-SEM: Indeed a Silver Bullet", The Journal of Marketing Theory and Practice, Vol. 19, No. 2, pp. 139-152. Available at: https://doi.org/10.2753/MTP1069-6679190202.

Harris, L.C. & Crane, A. (2002), "The greening of organizational culture: Management views on the depth, degree and diffusion of change", Journal of Organizational Change Management, Vol. 15, No. 3, pp. 214-234. Available at: https://doi.org/10.1108/09534810210429273/FULL/PDF.

Hart, S.L. (1995), "A Natural-Resource-Based View of the Firm", Academy of Management Review, pp. 17-45. Available at: https://doi.org/10.5465/AMR.1995.9512280033.

Hart, S.L. & Dowell, G. (2010), "Invited Editorial: A Natural-Resource-Based View of the Firm: Fifteen Years After", Journal of Management, Vol. 37, No. 5, pp. 1464-1479. Available at: https://doi.org/10.1177/0149206310390219.

Hena, S., Jingdong, L., Rehman, A. & Zhang, O. (2019), "A comparative analysis of agricultural development and modernization between China and Pakistan", International Journal of Advanced and Applied Sciences, Vol. 6, No. 4, pp. 81-94. Available at: https://doi.org/10.21833/ijaas.2019.04.010.

Hermundsdottir, F. & Aspelund, A. (2021), "Sustainability innovations and firm competitiveness: A review", Journal of Cleaner Production, Vol. 280, 124715. Available at: https://doi.org/10.1016/J.JCLEPRO.2020.124715.

Hussaien, A.M., Abdelraheem, A.A.E., Khogly, M.E.M., Mohmed, T.E.B., Mehaouat, L.H.A. & Elbokhari, Y.A.E. (2021), "Disclosure of social responsibility and the competitive advantage at Sudan industrial companies", International Journal of Advanced and Applied Sciences, Vol. 8, No. 4, pp. 54-60. Available at: https://doi.org/10.21833/ijaas.2021.04.007.

Hoffman, A.J. (2001), "Linking Organizational and Field-Level Analyses: The Diffusion of Corporate Environmental Practice", Organization & Environment, Vol. 14, No. 2, pp. 133-156. Available at: https://doi.org/10.1177/1086026601142001.

Horng, J.S., Liu, C.H., Chou, S.F., Yu, T.Y. & Hu, D.C. (2022), "Role of big data capabilities in enhancing competitive advantage and performance in the hospitality sector: Knowledge-based dynamic capabilities view", Journal of Hospitality and Tourism Management, Vol. 51, pp. 22-38. Available at: https://doi.org/10.1016/J.JHTM.2022.02.026.

Khan, S. (2022), "Determinants of Banks Profitability: An Evidence from GCC Countries", Journal of Central Banking Theory and Practice, Vol. 11, No. 3, pp. 99-116. Available at: https://doi.org/10.2478/jcbtp-2022-0025.

Kock, N. (2015), "Common Method Bias in PLS-SEM", International Journal of E-Collaboration, Vol. 11, No. 4, pp. 1-10. Available at: https://doi.org/10.4018/IJEC.2015100101.

Levy, B.L.M. & Marans, R.W. (2012), "Towards a campus culture of environmental sustainability: Recommendations for a large university", International Journal of Sustainability in Higher Education, Vol. 13, No. 4, pp. 365-377. Available at: https://doi.org/10.1108/14676371211262317/FULL/PDF.

Lin, J.Z. & Kim, H.H. (2022), "An empirical study on the high-quality development efficiency of the urban economy in China", International Journal of Advanced and Applied Sciences, Vol. 9, pp. 119-124. Available at: https://doi.org/10.21833/ijaas.2017.012.041.

Lisi, W., Zhu, R. & Yuan, C. (2020), "Embracing green innovation via green supply chain learning: The moderating role of green technology turbulence", Sustainable Development, Vol. 28, No. 1, pp. 155-168. Available at: https://doi.org/10.1002/SD.1979.

Marshall, D., McCarthy, L., McGrath, P., & Claudy, M. (2015), "Going above and beyond: How sustainability culture and entrepreneurial orientation drive social sustainability supply chain practice adoption", Supply Chain Management, Vol. 20, No. 4, pp. 434–454. Available at: https://doi.org/10.1108/SCM-08-2014-0267/FULL/PDF.

Muganyi, T., Yan, L., & Sun, H. ping (2021), "Green finance, fintech and environmental protection: Evidence from China", Environmental Science and Ecotechnology, Vol. 7, 100107. Available at: https://doi.org/10.1016/J.ESE.2021.100107.

Norton, T.A., Zacher, H., & Ashkanasy, N.M. (2015), "Pro-Environmental Organizational Culture and Climate", The Psychology of Green Organizations, pp. 322–348. Available at: https://doi.org/10.1093/ACPROF:OSO/9780199997480.003.0014.

Okello Candiya Bongomin, G., Mpeera Ntayi, J., Munene, J.C., & Akol Malinga, C. (2017), "The relationship between access to finance and growth of SMEs in developing economies: Financial literacy as a moderator", Review of International Business and Strategy, Vol. 27, No. 4, pp. 520–538. Available at: https://doi.org/10.1108/RIBS-04-2017-0037/FULL/XML.

Pan, C., Abbas, J., Álvarez-Otero, S., Khan, H., & Cai, C. (2022), "Interplay between corporate social responsibility and organizational green culture and their role in employees’ responsible behavior towards the environment and society", Journal of Cleaner Production, Vol. 366, 132878. Available at: https://doi.org/10.1016/J.JCLEPRO.2022.132878.

Péra, T.G., Bartholomeu, D.B., Su, C.T., & Caixeta Filho, J.V. (2019), "Evaluation of green transport corridors of Brazilian soybean exports to China", Brazilian Journal of Operations & Production Management, Vol. 16, No. 3, pp. 398–412. Available at: https://doi.org/10.14488/BJOPM.2019.v16.n3.a4.

Poland, B., & Dooris, M. (2010), "A green and healthy future: the settings approach to building health, equity and sustainability", Critical Public Health, Vol. 20, No. 3, pp. 281–298. Available at: https://doi.org/10.1080/09581596.2010.502931.

Porter, M.E. (1985), Competitive Advantage: Creating and Sustaining Superior Performance. New York: FreePress.

Qu, X., Khan, A., Yahya, S., Zafar, A.U., & Shahzad, M. (2021), "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, Vol. 65, No. 3, pp. 536–561. Available at: https://doi.org/10.1080/09640568.2021.1891029.

Ravasi, D., & Schultz, M. (2006), "Responding to Organizational Identity Threats: Exploring the Role of Organizational Culture", Academy of Management Journal, Vol. 49, No. 3, pp. 433–458. Available at: https://doi.org/10.5465/AMJ.2006.21794663.

Rehman, M.A., Seth, D., & Shrivastava, R.L. (2016), "Impact of green manufacturing practices on organisational performance in Indian context: An empirical study", Journal of Cleaner Production, Vol. 137, pp. 427–448. Available at: https://doi.org/10.1016/J.JCLEPRO.2016.07.106.

Rhou, Y., & Singal, M. (2020), "A review of the business case for CSR in the hospitality industry", International Journal of Hospitality Management, Vol. 84, 102330. Available at: https://doi.org/10.1016/J.IJHM.2019.102330.

Riding, A., Madill, J., & Haines, G. (2006), "Incrementality of SME Loan Guarantees", Small Business Economics, Vol. 29, No. 1, 47–61. https://doi.org/10.1007/S11187-005-4411-4

Salim, N., Ab Rahman, M. N., & Abd Wahab, D. (2019), "A systematic literature review of internal capabilities for enhancing eco-innovation performance of manufacturing firms", Journal of Cleaner Production, Vol. 209, pp. 1445–1460. Available at: https://doi.org/10.1016/J.JCLEPRO.2018.11.105.

Salvioni, D. M., & Almici, A. (2020), "Transitioning Toward a Circular Economy: The Impact of Stakeholder Engagement on Sustainability Culture", Sustainability, Vol. 12, No. 20, 8641. Available at: https://doi.org/10.3390/SU12208641.

Saragih, R., Rahayu, A., & Wibowo, L. A. (2017), "External environment impact on business performance in digital creative industry: Dynamic capability as mediating variable", International Journal of Advanced and Applied Sciences, Vol. 4, No. 9, pp. 61-69. Available at: https://doi.org/10.21833/ijaas.2017.09.008.

Schönborn, G., Berlin, C., Pinzone, M., Hanisch, C., Georgoulias, K., & Lanz, M. (2019), "Why social sustainability counts: The impact of corporate social sustainability culture on financial success", Sustainable Production and Consumption, Vol. 17, pp. 1–10. Available at: https://doi.org/10.1016/J.SPC.2018.08.008.

Singh, H., Mansor, N. A., Krubally, M., Balder, N., & Ullah, H. (2019), "Investigating the impact of dynamic and relational learning capabilities on green innovation performance of SMEs", International Journal of Advanced and Applied Sciences, Vol. 6, pp. 10-18. Available at: https://doi.org/10.21833/ijaas.2019.07.002.

Song, M., Wang, S., & Zhang, H. (2020), "Could environmental regulation and R&D tax incentives affect green product innovation?", Journal of Cleaner Production, Vol. 258, 120849. Available at: https://doi.org/10.1016/J.JCLEPRO.2020.120849.

Sun, Y., & Sun, H. (2021), "Green Innovation Strategy and Ambidextrous Green Innovation: The Mediating Effects of Green Supply Chain Integration", Sustainability, Vol. 13, No. 9, 4876. Available at: https://doi.org/10.3390/SU13094876.

Sutter, C., Bruton, G. D., & Chen, J. (2019), "Entrepreneurship as a solution to extreme poverty: A review and future research directions", Journal of Business Venturing, Vol. 34, No. 1, pp. 197–214. Available at: https://doi.org/10.1016/J.JBUSVENT.2018.06.003.

Trapp, C. T. C., & Kanbach, D. K. (2021), "Green entrepreneurship and business models: Deriving green technology business model archetypes", Journal of Cleaner Production, Vol. 297, 126694. Available at: https://doi.org/10.1016/J.JCLEPRO.2021.126694.

Tu, Y., & Wu, W. (2021), "How does green innovation improve enterprises’ competitive advantage? The role of organizational learning", Sustainable Production and Consumption, Vol. 26, pp. 504–516. Available at: https://doi.org/10.1016/J.SPC.2020.12.031.

Vafaei, S., Bazrkar, A., & Hajimohammadi, M. (2019), "The investigation of the relationship between sustainable supply chain management and sustainable competitive advantage according to the mediating role of innovation and sustainable process management", Brazilian Journal of Operations & Production Management, Vol. 16, No. 4, pp. 572–580. Available at: https://doi.org/10.14488/BJOPM.2019.v16.n4.a3.

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, Vol. 30, No. 4, pp. 666–683. Available at: https://doi.org/10.1108/JMTM-09-2018-0314/FULL/PDF.

Wang, J., Xue, Y., Sun, X., & Yang, J. (2020), "Green learning orientation, green knowledge acquisition and ambidextrous green innovation", Journal of Cleaner Production, Vol. 250, 119475. Available at: https://doi.org/10.1016/J.JCLEPRO.2019.119475.

Wang, J., Xue, Y., & Yang, J. (2020), "Boundary-spanning search and firms’ green innovation: The moderating role of resource orchestration capability", Business Strategy and the Environment, Vol. 29, No. 2, pp. 361–374. Available at: https://doi.org/10.1002/BSE.2369.

Wang, S., Abbas, J., Sial, M. S., Álvarez-Otero, S., & Cioca, L. I. (2022), "Achieving green innovation and sustainable development goals through green knowledge management: Moderating role of organizational green culture", Journal of Innovation & Knowledge, Vol. 7, No. 4, 100272. Available at: https://doi.org/10.1016/J.JIK.2022.100272.

Wu, W., Wu, W., Wu, K., Ding, C., & Fan, C. (2022), "Green Innovation, Corporate Environmental Ethics, and Competitive Advantages of Chinese Automobile Industry During COVID-19: Corporate Environmental Management as Moderator", Frontiers in Psychology, Vol. 13. Available at: https://doi.org/10.3389/FPSYG.2022.832895.

Zhang, M., Liu, X., Ding, Y., & Wang, W. (2019), "How does environmental regulation affect haze pollution governance?—An empirical test based on Chinese provincial panel data", Science of The Total Environment, Vol. 695, 133905. Available at: https://doi.org/10.1016/J.SCITOTENV.2019.133905.

Zhou, K. Z., Brown, J. R., & Dev, C. S. (2009), "Market orientation, competitive advantage, and performance: A demand-based perspective", Journal of Business Research, Vol. 62, No. 11, pp. 1063–1070. Available at: https://doi.org/10.1016/J.JBUSRES.2008.10.001




How to Cite

Ali, S., Degan, M., Omar, A., & Mohammad, A. J. (2024). Just go green: the effect of green innovation on competitive advantage with the moderating role of ‘access to finance’. Brazilian Journal of Operations & Production Management, 21(2), 1815 . https://doi.org/10.14488/BJOPM.1815.2024



Research paper