Exploring the green edge: the role of market orientation and knowledge management in achieving competitive advantage through creativity

Abstract

AbstractThis study examines the interconnectedness between Green Market Orientation (GMO) and Green Knowledge Management (GKM) in connection to Green Competitive Advantage (GCA) within Chinese green businesses. This research also focuses on the mediating influence of Green Creativity (GC). Drawing on the Knowledge-Based View (KBV), we examine how GMOs and GKM improve enterprises’ green creativity and subsequent green competitive advantage. Using a comprehensive survey of 325 environmentally conscious Chinese companies and an advanced PLS-SEM analysis, our findings offer several important insights. Our findings reveal that GMOs substantially affect both GC and GCA, highlighting their crucial role in fostering a company’s innovative green capabilities and competitive position. Concurrently, GKM positively affects GC and GCA, emphasizing the importance of effectively using and leveraging green knowledge within businesses. Furthermore, we observe the mediating role of GC in the relationships between GMO and GCA, as well as GKM and GCA. This finding underscores the need to promote GC to maximize the advantages of market orientation and knowledge management in attaining a green competitive advantage. These results not only add to the existing KBV theoretical framework, but they also have important implications for managers because they show how important it is to fully incorporate green practices into an organization’s strategy in order to gain a sustainable competitive advantage.