Green Practices Implementation as Prerequisite to Sustain Firm Competitive Advantages: The Empirical Study from Indonesia Large Scale Enterprises (LSEs)

Kardison Lumbanbatu and Vincent Didiek Wiet Aryanto
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Kardison Lumbanbatu: University of Diponegoro, Semarang, Indonesia
Vincent Didiek Wiet Aryanto: Department of International Marketing, Diponegoro University, Semarang, Indonesia & and Dian Nuswantoro University, Semarang, Indonesia

International Journal of Social Ecology and Sustainable Development (IJSESD), 2015, vol. 6, issue 4, 34-53

Abstract: Encompassing firms to apply green policy in a holistic management practices are strongly required in order to maintain competitive advantages and experience long-term marketing performance. This current empirical research is aimed to fill the lack of empirical findings and empirical studies on firm's innovative concept. Green-based product innovation, green management practices and green corporate image are presented as the antecedents and postulated as the sources of sustaining firm competitive advantages. A questionnaire-based survey was deployed to collect data from Large Scale Enterprises in Indonesia with Top Management, Operational and Marketing Managers served as respondents. 500 questionnaires were mailed and 388 were valid for further analysis. Data was analyzed by using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) via AMOS statistical software. Statistical findings demonstrated that green-based product innovation, green management practices and green corporate image significantly has a positive affect to sustain firm competitive advantages which is led to enhance long term marketing performance. However, green-based product innovation plays insignificant direct relationship on long term marketing performance. This study discusses some managerial implications for enterprises and recommendations on a basis of green implementation.

Date: 2015
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