Green Product Innovation as a Mediator Between Green Market Orientation and Sustainable Performance of SMEs

This study looks at how green market orientation affects green product innovation and the sustainable performance of SMEs in the manufacturing sector of an emerging market. Therefore, the objective of the study is to analyze the mediating role of green product innovation between green market orientation and the sustainable performance of SMEs. It also looks at how green product innovation can operate as a mediator in the relation between green market orientation and the sustainable performance of manufacturing SMEs. The data from 324 Omani manufacturing sector SMEs were analyzed using the partial least squares structural equation modeling (PLS-SEM) technique. The findings indicate that green market orientation has a direct impact on the sustainable performance of manufacturing SMEs. Furthermore, the findings suggest that green market orientation has an indirect impact on the sustainable performance of manufacturing SMEs through green product innovation, which confirms the mediating effect. Manufacturing SMEs accept responsibility for continuously improving the safety and health of their employees while focusing on innovation in new green products. This empirical study, which was examined in the context of Oman’s developing market economy, is unique as it highlights the significant mediating influence of green product innovation on the sustainable performance of manufacturing SMEs. This study complements earlier studies that have mostly been carried out in industrialized (Western) economies. Practically speaking, this study emphasizes for SMEs the importance of consistently experimenting with new concepts for sustainable innovation and a competitive edge in a tough business environment. Future research directions are also provided. Therefore, the findings recommend that the owners and managers of the manufacturing sector’s SMEs should invest in green product innovation to promote sustainable performance in accordance with green market orientation concepts.