Year: 2026 | Month: June | Volume 14 | Issue 1
Eco-Innovation, Green Competitive Advantage, and Sustainable Business Performance in African Firms: An Empirical Structural Equation Modeling Approach
10.30954/2322-0465.01.2026.2
DOI:10.30954/2322-0465.01.2026.2
Abstract:
Eco-innovation has emerged as a strategic mechanism for enhancing corporate sustainability, particularly in emerging African economies facing environmental and institutional pressures. Despite growing interest, empirical evidence explaining how eco-innovation translates into sustainable business performance remains limited. This study investigates the direct and indirect effects of eco-innovation on sustainable business performance, incorporating green competitive advantage as a mediating construct. Using survey data collected from 312 manufacturing and service firms across Nigeria, Kenya, and South Africa, the study applies Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that product, process, and organizational eco-innovation significantly enhance green competitive advantage and sustainable business performance. Furthermore, green competitive advantage partially mediates the eco-innovation–performance relationship. The findings contribute to eco-innovation literature in emerging economies and provide strategic implications for managers and policymakers.
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