Examining the Role of Technological Innovation, and the Impact of Green Procurement on Competitive Advantage and Company Performance

Abstract

This study investigates the relationship between competitive strategy, green purchasing practices, and firm performance among firms in the Tema Metropolis. Adopting the Resource-Based Theory as its theoretical foundation, positivist research methodology, and explanatory research design, 161 respondents were surveyed. The associations between the variables were determined using the Structural Equation Modeling (SEM) method with Smart Partial Least Square (PLS) software version 3.0 as well as the Statistical Package for Social Sciences (SPSS). The study analysis revealed that findings reveal a positive association between competitive strategy and green purchasing adoption, but a negative relationship between green purchasing practices and firm performance. However, technological innovation can mitigate this negative effect, suggesting that firms can balance their green initiatives with performance goals by investing in innovation. The study's recommendations include adopting competitive strategies to encourage green purchasing, considering the potential negative impact on competitive advantage and performance, leveraging technology, and providing policy support for sustainable practices and economic growth. This research contributes to the literature on green practices and firm performance, providing practical implications for firms and policymakers.