Green innovation and competitiveness: empirical evidence from Ecuadorian manufacturing

Purpose The purpose of this study is to explore green innovation and its role in driving competitiveness in Ecuadorian manufacturing firms, focusing on structural equation modelings, which account for more than 90% of the productive units and aggregate national income. The manufacturing sector in Ecuador reports variable growth since the start of the COVID pandemic, drawing more attention from practitioners, regulators and scholars alike, due to its distinctive footprint on people, profit and planet, particularly in the context of developing economies. Design/methodology/approach A model with two second-order constructs is developed and tested in a sample of 325 managers from manufacturing firms in Ecuador, using quantitative and cross-section methods. Findings After obtaining adjusted and validated metrics, a structural equation model is presented, where the main hypothesis is confirmed, supporting the positive impact of green innovation on competitiveness. Practical implications The research provides evidence on how manufacturing firms favoring green innovation in their long-term planning can unlock and sustain competitiveness. Policymakers could then offer incentives for firms to embed sustainable practices, with potential ripple effects along the supply chain, aggregating up competitiveness to industry and national levels. Originality/value The study aims to bridge the existing knowledge gap on the interplay of green innovation and competitiveness, claiming that the former significantly influences the latter, in an emerging market context, with incremental gains for all stakeholders, as posited by stakeholder theory. Propósito El propósito de esta investigación es explorar la innovación verde y su rol en la generación de competitividad en las empresas manufactureras ecuatorianas, centrándose en las PYMES, que representan más del 90 por ciento de las unidades productivas y del ingreso nacional agregado. El sector manufacturero en Ecuador reporta un crecimiento variable desde el inicio de la pandemia de COVID, lo cual atrae la atención de profesionales, reguladores y académicos por igual, debido a su huella distintiva en la sociedad, la rentabilidad y el planeta, particularmente en el contexto de las economías en desarrollo. Diseño/metodología/enfoque Se desarrolla y estima un modelo con dos constructos de segundo orden, en una muestra de 325 gerentes de empresas manufactureras del Ecuador, utilizando métodos cuantitativos y transversales. Resultados Tra