Green Innovation Drivers and their Impact on Competitive Advantage, Operational and Environmental Performance in the Malaysian Automotive Industry

Sharulshahida Shakrein Safian, Adibah Alawiah Osman, Mohammad Zulfakhairi Mokhtar, Salwaty Jamaludin and Zarina Kassim

Information Management and Business Review, 2025, vol. 17, issue 3, 228-236

Abstract: In recent years, environmental crises have been perceived by businesses as significant threats to their operations and long-term sustainability, forcing many businesses to adapt and incorporate environmentally friendly approaches. Due to the increasing importance of environmental issues and demand for environmentally friendly methods, green innovation has emerged as a pivotal strategy for companies to achieve sustainable growth and boost their business’s sustainability efforts. The term ‘green supply chain management’ or ‘supply chain environmental management’ has only recently gained recognition from numerous companies; thus, only a few studies have been done on the relationship between greening the supply chain, green innovation, competitive advantage, operational, and environmental performance. The paper aims to bridge the significant gap by providing empirical evidence, which will allow the industrial implementation of green supply chains and green innovation to gain a competitive advantage in the global market. Through the findings, it will then improve operational and environmental efficiency. The information was gathered from 240 Malaysian companies in the automotive industry sector through a questionnaire survey. Structural equation modelling was utilized to analyze the data, and through the results, it is evident that greening the supplier through green innovation has a major impact on environmental performance. The results will contribute to facilitating automotive industry professionals in building a systematic blueprint to control and maximize the implemented green innovation practices towards increasing the overall productivity.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arimbr:v:17:y:2025:i:3:p:228-236

DOI: 10.22610/imbr.v17i3(I).4661

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