Environmental and innovational dynamics for sustainable competitiveness in the manufacturing industry

This research examines how environmental management system, recycling, eco-innovation, and open innovation effect sustainable competitive advantage in the Indian manufacturing sector in New Delhi. This quantitative research was carried out using a questionnaire-based approach, where 583 participants responded using the PLS-SEM method via Smart-PLS 4. the results of this paper indicate that environmental management systems mediate the relationship between recycling and Eco-Innovation. Furthermore, external sources of information and open innovation show significant relations to eco-innovation, which, in turn, contributes highly to sustainable competitive advantage. The paper's originality is to illustrate the mediating effect of environmental management system within the recycling-innovation nexus and further provide empirical evidence that eco-innovation is an important causal factor for long-term competitive advantage. Therefore, businesses that practice eco-innovation are well-placed to comply with regulations and market demands concerning greener products, thereby achieving a strategic advantage.