Greening the edge: how green innovations and green corporate image boost competitive advantage in Sri Lanka’s green apparel sector

Purpose The study aims to examine the impact of green innovation on competitive advantage, focusing on the mediating role of green corporate image. Design/methodology/approach The simple random sampling technique was used, and a self-administered questionnaire was distributed among 323 managers in green apparel organizations in Sri Lanka. The data was analyzed using structural equation modeling techniques. Findings The findings revealed that green innovation significantly enhances competitive advantage in the Sri Lankan green apparel sector. Furthermore, it demonstrated that green innovation can improve a company’s green corporate image, which has a significant and positive impact on competitive advantage. Finally, the results confirmed that the green corporate image partially mediates the impact of green innovation on competitive advantage. Research limitations/implications The theoretical contribution can be discussed from three perspectives. It reinforces the resource-based view (RBV) by offering empirical evidence, extends RBV by highlighting the importance of green corporate image in gaining competitive advantage and integrates RBV with stakeholder theory. Furthermore, this study contributes to green marketing literature with empirical evidence. Practical implications Practitioners should recognize that green innovation is a strategic asset that can be leveraged as a branding strategy. A strong green image should be cultivated through transparent sustainability reporting, environmental certifications and eco-labeling. Originality/value To the best of authors’ knowledge, this research is original in its combined examination of three constructs within a single framework. Furthermore, it addresses this notable gap in existing. It gives a unique theoretical contribution by integrating the RBV and stakeholder theory. In addition, it offers original insights into how green innovation practices contribute to competitive outcomes in an emerging market.