Green innovation, indeed a cornerstone in linking market requests and business performance

Abstract

Many studies uphold market orientation as a key factor in creating and sustaining a firm’s competitive advantage. This research aims to explore this topic further by including within the model the concept of green innovation. In particular, this paper empirically tests the mediating role of green innovation performance in the relationship between market orientation and organizational performance. This study relies on a sample of 145 firms belonging to the Spanish automotive components manufacturing sector. The results obtained by applying Partial Least Squares (PLS) path-modelling, a variance-based structural equations modelling technique, reveal that market orientation exerts a direct impact on organizational performance. Subsequently, we observe how the green innovation performance construct partially mediates the market orientation-organizational performance link. The paper brings some theoretical conclusions and implications for research and practice.