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All Journal International Journal of Applied Business and International Management
Dwi Retno Setyaningsih
Universitas Pembangunan Nasional Veteran Yogyakarta
Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

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Innovation Capability, Green Innovation, and Property Business Performance: Mediating Role of Competitive Advantage Dwi Retno Setyaningsih; Sabihaini Sabihaini; Heru Kristanto
International Journal of Applied Business and International Management Vol 11, No 2 (2026): August 2026
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/ijabim.v11i2.4664

Abstract

The property industry faces growing demands to integrate sustainability into business strategy. This study examines the effects of innovation capability and green innovation on business performance, mediated by competitive advantage, in the property industry of the Special Region of Yogyakarta (DIY). A quantitative explanatory design was applied, with landed housing projects as the unit of analysis. Data comprised 141 project-level responses covering 141 active landed housing projects, collected through a key informant approach and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that innovation capability significantly affects competitive advantage, while competitive advantage significantly affects business performance. Competitive advantage demonstrates indirect-only mediation (full mediation) between innovation capability and business performance. Green innovation, by contrast, does not significantly affect competitive advantage or business performance, either directly or through the mediating pathway. Innovation activities appear to function as integrative capabilities rather than separate practices. These findings confirm the Resource-Based View proposition that internal resources require conversion through competitive advantage. They also reveal the contextual limitations of applying the Natural Resource-Based View in regional property markets that remain price-sensitive and lack a mature green ecosystem.
Co-Authors Heru Kristanto Sabihaini Sabihaini