Green Customer and Supplier Integration for Competitive Advantage: The Mediation Effect of Sustainable Product Innovation

Abstract

The purpose of this study is two-fold: first is to examine the direct effect of green customer integration, green supplier integration, and new product flexibility on sustainable green product innovation (henceforth sustainable innovation), and the second is to assess the mediating role of sustainable green product innovation in the relationship of the independent variables on competitive advantage of the firm. To test these relationships, a quantitative method is used, employing a cross-sectional survey targeting the senior managers of the manufacturing sector in Jordan. Out of 750 surveys administered to respondents, 378 complete responses were obtained, yielding a response rate of 50.4%. Covariance-based structural equation modelling (CBSEM) using AMOS 28 is utilized to analyse the data. The results suggest that green customer integration, green supplier integration, and new product flexibility have a significant impact on sustainable green product innovation. The results also suggest that sustainable green product innovation has a significant mediating effect on the relationship between the three predictor variables and competitive advantage. In addition, new product flexibility partially mediates the relationship between green supplier integration and sustainable green product innovation.