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Isdiana, Firdha Nurul
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Arts Humanities Economics, Econometrics & Finance Education Law, Crime, Criminology & Criminal Justice Social Sciences

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Green Innovation and Competitive Pressure as Drivers of Sustainable Performance in the Fashion Industry Isdiana, Firdha Nurul; Sari, Devi Artika; Batu, Kardison Lumban
Research Horizon Vol. 5 No. 3 (2025): Research Horizon - June 2025
Publisher : LifeSciFi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54518/rh.5.3.2025.600

Abstract

The fashion industry, particularly the fast fashion segment, significantly contributes to environmental degradation through excessive resource use and waste. This study examines how competitive pressure, green product innovation, and green process innovation influence sustainable firm performance among fashion Micro, Small, and Medium Enterprises (MSMEs) in a region. Using the Natural Resource-Based View (NRBV) as a theoretical framework, the research highlights the strategic role of green innovation in building environmentally valuable, rare, inimitable, and non-substitutable (VRIN) capabilities. A quantitative method was employed, with data collected from 100 MSME actors via a structured questionnaire and analyzed using Covariance-Based Structural Equation Modeling (CB-SEM) in AMOS. The findings reveal that competitive pressure, as well as green product and process innovations, have a positive and significant effect on sustainable firm performance. Green product innovation, including eco-friendly materials and circular design, and green process innovation, such as waste-reducing technologies, are identified as crucial strategies for achieving environmental and business goals.
Co-Authors Kardison Lumban Batu Sari, Devi Artika