THE EFFECT BETWEEN GREEN PRODUCT INNOVATION AND GREEN MARKETING ON COMPETITIVE ADVANTAGE AND BUSINESS PERFORMANCE

Abstract

Based on the Resource Based View Perspective, a purpose for this research study was to examined and explained by the effect between Green Marketing, Green Product Innovation, towards competitive advantage and business performance. This study also uses an explanatory approach to explain the causal relationship between variables through hypothesis testing. The research data were collected using a questionnaire distributed to 95 business actors who are members in the Small and Medium Enterprises assisted by PLUT East Java. For the data analysis also used with the Partial Least Square (PLS) approach. The research findings shown that Green Marketing and Green Product Innovation have a significant effect on Business Performance. Additionally, green marketing and green product innovation have a significant effect on competitive advantage. In conclude, competitive advantage has a significant effect on business performance.