Cost Efficiency and Green Product Innovation in SMEs for Emerging Economies: The roles of Green Brand Knowledge and Green Innovation Capability

Maulidi, Ach (2025) Cost Efficiency and Green Product Innovation in SMEs for Emerging Economies: The roles of Green Brand Knowledge and Green Innovation Capability. Journal of Cleaner Production, 498 (145130). pp. 1-14. ISSN 1879-1786

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Abstract

This study aims to explore the conditions under which cost efficiency (CE) is positively linked to green product innovation (GPI), with a specific focus on SMEs in emerging economies – a context where the interplay between these variables remains under-explored. While existing literature has addressed CE and GPI individually, there is a paucity of research investigating their interrelationship, particularly within the dynamic environments of SMEs in emerging markets. By integrating internal resources, such as green brand knowledge (GBK) and green innovation capability (GIC), this study offers a novel perspective on how these factors potentially moderate or mediate the CE-GPI relationship. Our findings reveal a paradox: CE, when pursued in isolation, negatively affects GPI, potentially due to the constraints it places on innovation. However, in firms where GBK and GIC are robust, these resources enable better alignment and utilisation of cost-efficiency strategies, thereby fostering innovation. Interestingly, neither GBK nor GIC exhibits significant direct or mediating effects on the CE-GPI relationship, highlighting the complex nature of these interactions. Theoretical contributions and managerial implications are discussed, emphasising the need for a balanced approach to cost efficiency and innovation in SMEs within emerging economies.

Item Type:	Article
Uncontrolled Keywords:	Cost efficiency, Green product innovation, Green brand knowledge, Green innovation capability
Subjects:	H Social Sciences > HG Finance H Social Sciences > HJ Public Finance
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	ACH MAULIDI
Date Deposited:	10 Mar 2025 02:47
Last Modified:	10 Mar 2025 02:47
URI:	http://repository.ubaya.ac.id/id/eprint/48163

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