Green is the new black: How research and development and green innovation provide businesses a competitive edge

Mohammad Jamal Bataineh; Pedro Sánchez‐Sellero; Fayssal Ayad

doi:10.1002/bse.3533

journal article Open Access Aug 16, 2023

Green is the new black: How research and development and green innovation provide businesses a competitive edge

Mohammad Jamal Bataineh

Pedro Sánchez‐Sellero Fayssal Ayad

Business Strategy and the Environment Vol. 33 No. 2 pp. 1004-1023 · Wiley

View at Publisher Save 10.1002/bse.3533

Abstract

Abstract
As part of the burgeoning research on green innovation (GI) and its influence on competitive advantage (CA), this paper examines the moderating effect of research and development (R&D) on this nexus. Our framework identifies five critical capabilities that contribute to CA, namely, firm image, labor costs, product differentiation, product quality, and market share. Using a novel bias‐correction methodology, we examined the Spanish Technological Innovation Panel (PITEC in Spanish) database from 2003 to 2016 to determine whether GI practices foster CA. Treatment‐effects analyses, including propensity score matching and fuzzy difference‐in‐differences (DiD), demonstrated that R&D expenditures have a positive moderating effect on CA when controlling for the covariates GI practices, firm age, and firm size. This research advances our understanding of the interplay between GI practices, R&D investments, and CA and, as such, has implications for decision makers aiming to create sustainable CA through GI. Our findings are also highly relevant for firms seeking to remain competitive in today's evolving business climate.

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Details

Published: Aug 16, 2023
Vol/Issue: 33(2)
Pages: 1004-1023
License: View

Authors

M

Mohammad Jamal Bataineh

Department of Business Administration, Faculty of Economics and Business Universidad de Zaragoza, Campus Paraiso Zaragoza Spain

P

Pedro Sánchez‐Sellero

Department of Business Administration, School of Engineering Universidad de Zaragoza, Campus Río Ebro Zaragoza Spain

F

Fayssal Ayad

National Higher School of Statistics and Applied Economics, Department of Econometrics Pôle Universitaire de Koléa Tipaza Algeria

Cite This Article

Mohammad Jamal Bataineh, Pedro Sánchez‐Sellero, Fayssal Ayad (2023). Green is the new black: How research and development and green innovation provide businesses a competitive edge. Business Strategy and the Environment, 33(2), 1004-1023. https://doi.org/10.1002/bse.3533

Green is the new black: How research and development and green innovation provide businesses a competitive edge

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