Research Horizon
Vol. 5 No. 3 (2025): Research Horizon - June 2025

Green Innovation and Competitive Pressure as Drivers of Sustainable Performance in the Fashion Industry

Isdiana, Firdha Nurul (Unknown)
Sari, Devi Artika (Unknown)
Batu, Kardison Lumban (Unknown)



Article Info

Publish Date
30 Jun 2025

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.

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Journal Info

Abbrev

RH

Publisher

Subject

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

Description

The journal aims to make significant contributions to applied research and knowledge across the globe through the publication of original and high-quality research articles. It publishes original research articles, reviews, mini-reviews, case reports, letters to the editor, and commentaries, thereby ...