Greening for Gain: How Firm Resources Shape Competitive Advantage in Sri Lanka’s Green Apparel Sector

Green innovation stimulates healthier living, minimizes environmental harm, and supports long-term socio-economic well-being. Organizations with green practices can enhance competitiveness and build a strong corporate image through sustainable practices. This study examines the moderating role of firm resources on green innovation and competitive advantage. It uses the deductive approach to test the hypotheses. Data were collected using the survey method and a self-structured questionnaire. A simple random sampling technique was used to find the sample. The unit of analysis is the individual. PLS-SEM was used for data analysis. The results indicated that green innovation has a significant positive impact on competitive advantage and an insignificant moderating effect of firm resources on the relationship between green innovation and competitive advantage. The findings extend the Resource-Based View theory by providing empirical support. Further, findings show how organizations can lead to a competitive advantage with green innovation. Moreover, it suggests that having more resources is not important to gain a competitive advantage. This study is unique in examining the moderating impact of green innovation on competitive advantage in the green apparel sector. Further, it is original in its combined examination of three constructs within a single framework. Further, it addresses this notable gap in existing.