Environmental Responsibility, Strategy, and Competitive Advantage: Mediating Effect of Environmental Innovation

Shaker M. Al-Kahtani, Nabil Ahmed Mareai Senan and Ibtisam Dhuwayhi Alanazi
Additional contact information
Shaker M. Al-Kahtani: Department of Business Administration, Administrative Science College, Albaydha University, Yemen
Nabil Ahmed Mareai Senan: Department of Accounting, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia; & Department of Accounting, Administrative Science College, Albaydha University, Yemen
Ibtisam Dhuwayhi Alanazi: Department of Accounting, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 3, 316-331

Abstract: This study recognizes that corporate environmental responsibility (CER) can be put into practice in both tactical and strategic ways. Companies often embrace environmental responsibility (ER) as a commitment to the environment as they deal with constraints on their resources while seeking competitive advantages (CAs). Companies are under tremendous pressure to fulfill their social and environmental responsibilities because of accelerating environmental issues. This study uses environmental innovation (EI) as a mediating variable to study the relationship between ER, environmental strategy (ES), and CAs. The study also attempts to understand how EI affects companies' ability to compete. This paper fills the gap in the relevant literature where there is insufficient evidence regarding the practices of ER, ES, eco-innovation (EN), and competitive advantage (CA). This is due to the growing trend of EN and the resulting increase in research interest. A questionnaire was conducted on 45 of the largest local and foreign companies operating in the Republic of Yemen to achieve the objectives of the study. 250 survey questionnaires were distributed. Descriptive and inductive statistics, including structural equation modeling using Smart Plus 4 software, were used to analyze the data. The results of the study showed that the studied companies used EI strategies to a reasonable extent. We discovered a positive effect and relationship between ER and ES, as independent variables, and EI. We also discovered a direct positive effect and relationship between EN and CA. In addition, we concluded that there is a positive influence relationship and a mediating relationship between CA using EI as a mediating variable and ER and ES as independent variables.

Keywords: Environmental Responsibility; Environmental Strategy; Environmental Innovation; Competitive Advantage; Industrial Companies; Smart Plus (search for similar items in EconPapers)
JEL-codes: M10 M19 O30 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/15482/7875 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/15482 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2024-03-32

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().