Green Innovation and Entrepreneurial Orientation as Strategies for Building Competitive Advantage and Sustainable Performance in the Creative Industry

Authors

  • Yedi Sispurwanto Politeknik Kampar
  • Nur Hidayatul Hafidzah IPB University
  • Muhammad Firjatullah Nur Akbar Universitas Pahlawan Tuanku Tambusai

DOI:

https://doi.org/10.61132/jpbi.v3i2.1614

Keywords:

Competitive Advantage, Entrepreneurial Orientation, Green Innovation, Creative Industry, Sustainable Performance

Abstract

Creative industries face increasing challenges in maintaining competitiveness while integrating innovation and sustainability strategies. This study aims to examine the role of green innovation and entrepreneurial orientation in improving sustainable performance through competitive advantage as a mediating mechanism. A quantitative explanatory research approach was applied involving creative industry business owners and managers selected through purposive sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to evaluate the measurement and structural models. The findings indicate that green innovation and entrepreneurial orientation contribute positively to competitive advantage and sustainable performance. Furthermore, competitive advantage plays an important mediating role in transforming strategic capabilities into sustainable business outcomes. These results highlight that environmentally responsible innovation and entrepreneurial capabilities can become valuable resources for creative industry firms to achieve long-term competitiveness. This study contributes to the development of sustainability and entrepreneurship literature by demonstrating how innovation-oriented strategies and internal capabilities support sustainable performance in dynamic business environments.

 

Downloads

Download data is not yet available.

References

Andrade-Valbuena, N. A., & Llanos-Herrera, G. R. (2022). Why are there discrepancies in the results of entrepreneurial orientation and its impact on a firm's performance? A review of the literature. In Handbook of Research on Organizational Sustainability in Turbulent Economies (pp. 315–334). IGI Global. https://doi.org/10.4018/978-1-7998-9301-1.ch017

Bedoya Villa, M. A., & Arango Alzate, B. (2017). Entrepreneurial orientation, resources and capabilities: A conceptual framework review for innovation. Espacios, 38(38).

Bota-Avram, C. (2023). Bibliometric analysis of sustainable business performance: Where are we going? A science map of the field. Economic Research-Ekonomska Istraživanja, 36(1), 2137–2176. https://doi.org/10.1080/1331677X.2022.2096094

Coelho, A., Ferreira, J., & Proença, C. (2024). The impact of green entrepreneurial orientation on sustainability performance through the effects of green product and process innovation: The moderating role of ambidexterity. Business Strategy and the Environment, 33(4), 3184–3202. https://doi.org/10.1002/bse.3648

Herlinawati, E., Suryana, Ahman, E., & Machmud, A. (2019). The effect of entrepreneurial orientation on SMEs business performance in Indonesia. Journal of Entrepreneurship Education, 22(5).

Herlinawati, E., Suryana, Ahman, E., & Machmud, A. (2019). The effect of entrepreneurial orientation on SMEs business performance in Indonesia. Journal of Entrepreneurship Education, 22(5).

Holz, H. F. (2025). The Resource-Based View of the Firm. In International Encyclopedia of Business Management (Vol. 1, pp. 316–323). Elsevier. https://doi.org/10.1016/B978-0-443-13701-3.00383-2

Lee, H., Ahmed, U., Zhussupova, B., & Khalid, N. (2019). Impact of innovation capability and competitiveness on entrepreneurial orientation regarding to the entrepreneurial education in business performance among South Korean firms. Polish Journal of Management Studies, 20(2), 358–367. https://doi.org/10.17512/pjms.2019.20.2.30

Lee, H., Ahmed, U., Zhussupova, B., & Khalid, N. (2019). Impact of innovation capability and competitiveness on entrepreneurial orientation regarding to the entrepreneurial education in business performance among South Korean firms. Polish Journal of Management Studies, 20(2), 358–367. https://doi.org/10.17512/pjms.2019.20.2.30

Marco-Lajara, B., Zaragoza-Saez, P., & Martínez-Falcó, J. (2023). Green innovation: Balancing economic efficiency with environmental protection. In Research Anthology on Business Law, Policy, and Social Responsibility (pp. 916–931). IGI Global. https://doi.org/10.4018/979-8-3693-2045-7.ch048

Marco-Lajara, B., Zaragoza-Saez, P., & Martínez-Falcó, J. (2023). Green innovation: Balancing economic efficiency with environmental protection. In Research Anthology on Business Law, Policy, and Social Responsibility (pp. 916–931). IGI Global. https://doi.org/10.4018/979-8-3693-2045-7.ch048

Martínez-Falcó, J., Sánchez-García, E., Marco-Lajara, B., & Millán-Tudela, L. A. (2024). Green innovation: Integrating economic growth with environmental stewardship. In Green Supply Chain Management Practice and Principles (pp. 150–167). IGI Global.

Melander, L. (2018). Improving green product innovation through collaboration. IEEE Engineering Management Review, 46(2), 133–137. https://doi.org/10.1109/EMR.2018.2833861

Mukhopadhyay, N., & Nayak, N. C. (2024). Examining the relationship between green innovation dynamics and firm performance: A comparative study of BRICS and G7 countries. Cogent Business & Management, 11(1), 2364836. https://doi.org/10.1080/23311975.2024.2364836

Münter, M. T. (2025). Resource-Based View. In International Encyclopedia of Business Management (Vol. 1, pp. 475–480). Elsevier.

Nuryakin. (2021). Mediating effect of relational capabilities in the relationship between entrepreneurial orientation and SMEs performance. Journal of Entrepreneurship, Management and Innovation, 17(1), 129–146. https://doi.org/10.7341/20211714

Pratono, A. H., Darmasetiawan, N. K., Yudiarso, A., & Jeong, B. G. (2019). Achieving sustainable competitive advantage through green entrepreneurial orientation and market orientation: The role of inter-organizational learning. Bottom Line, 32(1), 2–15. https://doi.org/10.1108/BL-10-2018-0045

Pratono, A. H., Darmasetiawan, N. K., Yudiarso, A., & Jeong, B. G. (2019). Achieving sustainable competitive advantage through green entrepreneurial orientation and market orientation: The role of inter-organizational learning. Bottom Line, 32(1), 2–15. https://doi.org/10.1108/BL-10-2018-0045

Rahman, E. Z., & Shah, S. H. A. (2023). The importance of green innovation and technologies for sustainable business in Asia: Issues and challenges of the contemporary sustainable business models. In Entrepreneurship and Green Finance Practices (pp. 163–180). Emerald Publishing.

Taan, H., Alam, H. V., Rukayah, S., Ismail, Y. L., & Arsyad, N. F. (2023). The impact of entrepreneurial orientation and company innovation on the business performance of manufacturing SMEs. International Journal of Management and Sustainability, 12(3), 419–434. https://doi.org/10.18488/11.v12i3.3467

Yaacob, Z., Md. Saad, N. H., & Dahalan, N. (2020). Influence of contextual factors on entrepreneurial orientation and business performance. Academy of Entrepreneurship Journal, 26(2), 1–10.

Downloads

Published

2026-04-30

How to Cite

Yedi Sispurwanto, Nur Hidayatul Hafidzah, & Muhammad Firjatullah Nur Akbar. (2026). Green Innovation and Entrepreneurial Orientation as Strategies for Building Competitive Advantage and Sustainable Performance in the Creative Industry. Jurnal Pemimpin Bisnis Inovatif, 3(2), 15–26. https://doi.org/10.61132/jpbi.v3i2.1614