Effect of social innovation on sustainable business performance with the mediating role of green competitiveness; a case of large manufacturing firms in Ethiopia

Abstract

This research addresses the gap in understanding how social innovation influences green competitiveness and sustainable business performance in Ethiopia’s large manufacturing firms. The researchers utilized both primary and secondary data with quantitative research approach. Target population of the study comprised of 36500 employees of large manufacturing firms located in Sidama regional state, Ethiopia. By using the stratified sampling technique, 396 participants were selected from the target population. To collect data from respondents, a structured questionnaire was employed. The study employed structural equation modeling (SEM) alongside exploratory and confirmatory factor analysis (EFA and CFA) to analyze data. The finding of the study indicated that social innovation influences sustainable business performance. Social innovation also influences green competitiveness and green competitiveness influences sustainable business performance. In this study, green competitiveness was found to be a partial mediator in the relationship. The findings of this investigation conveyed the importance of green competitiveness to advance sustainability programs in large manufacturing firms, and they imply that businesses should prioritize community and environmental performance. The findings emphasize how green competitiveness and sustainability practices are interrelated in large manufacturing firms. Large manufacturing companies can enhance their innovative processes and effectively respond to market demands by fostering green competitiveness. This research contributes to a deeper theoretical understanding of sustainable business practices and provides helpful insights to manufacturers seeking to strengthen their sustainability initiatives. By integrating these practices, companies can achieve long-term commercial performance while promoting environmental stewardship, ultimately benefiting both the business and society at large.