How organizational green culture influences green performance and competitive advantage

Purpose Growing public concern about the natural environment is rapidly transforming the competitive landscape and forcing firms to adopt green innovation strategies. Many manufacturing firms have recognized the concept of green innovation, though there has been relatively little research on considerations of its driver and effect. The purpose of this paper is to empirically develop and test a theoretical model that analyzes how organizational green culture (OGC) influences green performance and competitive advantage. Specifically, this model explains how green innovation mediates these relationships. Design/methodology/approach The paper collected data from 327 manufacturing firms of different industry sectors in Taiwan. Structural equation modeling with AMOS 11 software was applied to analyze the data. Data on specific environmental innovation issues at the firm level are not usually available from published sources, so this paper uses a questionnaire. The questionnaire is developed based on the literature. Findings The findings of this paper suggest that OGC significantly predicted green performance and competitive advantage, respectively. Moreover, the results show that both green innovation completely mediates between OGC and green performance, and that it has a partially mediating effect on the relationship between organization green culture and competitive advantage under environmental pressure. Research limitations/implications This study has some limitations that point to the future lines of research. Perhaps, the biggest limitation of the study is that the data are from a single country, which may hamper generalization. This study is also limited in that it is based on cross-sectional data. A final limitation is the origin of organizational culture vs employee attitude culture. Originality/value This study contributes to the existing literature on organizational culture and innovation by considering green environmental concerns, which have not been empirically explored. This study also offers a unique theoretical argument describing the relationships by considering the mediating effect of green innovation strategy.