Analysis of the Effect of Green Organizational Culture on Organizational Performance and Competitive Advantages of Green through Green Innovation in Manufacturing Industries

Kristian Chandra, Willy Arafah, Yuzwar Z. Basri


The impact of company activities on the environment is an important issue today. Due to its importance, the purpose of this study is to examine the influence of green culture organizations on organizational performance and green competitive advantage mediated by green innovation. The sample used is a leadership level consisting of CEOs, managers, and a team of experts in the manufacturing industry, with 185 respondents. The sampling technique was purposive sampling. The analytical method used is the Structural Equation Model (SEM). This study shows a positive and significant influence of green culture organization on green innovation, green competitive advantage, and organizational performance for the direct effect. And also an indirect effect, green culture organization through green innovation has a positive and significant influence on green competitive advantage and organizational performance. These results indicate the importance of a green strategy implemented within the company because it will increase its competitiveness and performance in economic, operational, and environmental aspects. In this study, the authors seek to contribute to the development both in theory and practice. The strategy carried out by the company must pay attention to environmental factors because it is to pay attention to the continuity of the business being carried out. Companies that pay attention to environmental factors today can win the business competition for a long time. That is proven by the results of research done.



Keywords: green culture organization, green innovation, green competitive advantage, organizational performance.




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