Influence of Social Media Usage on the Green Product Innovation of Manufacturing Firms through Environmental Collaboration

Abstract

Firms are finding it increasingly important to leverage social media to facilitate knowledge access, get valuable feedback, and improve innovations to cater for emerging markets. However, using social media without integrating other key factors does not seem to add value to innovation efforts. Therefore, this study investigates the potential of social media usage (SMU) in enhancing green product innovation (GPI) and how two types of environmental collaboration may affect that relationship, which is a subject that has been under-explored. First, the literature on the expansion of the use of social media in enhancing GPI was reviewed to develop the theoretical framework and hypotheses. Then, data collected from 211 manufacturing firms were analysed using structural equation modelling to examine the proposed relationship. The results revealed that SMU does not directly influence GPI. Rather, internal environmental collaboration (IEC) and environmental collaboration with suppliers (ECS) fully mediate the relationship between SMU and GPI. The results further disclosed a positive relationship between IEC and ECS, where both types of environmental collaboration seem to be key factors in improving GPI. Hence, this study highlights the importance of knowledge sharing through environmental collaborations for the generation of ideas to improve products in order to remain competitive in the market.