The study explores the key reinforcing factors of green competitive advantage among equipment manufacturing enterprises in China. Primary data using a survey method has been collected from managers and customers of equipment manufacturing organizations. Covariance-based structural equation modeling (CBSEM) using SPSS 23.0 and AMOS 23.0 have been employed to estimate empirical findings. The results show that green brand image leads the process of reinforcing green competitive advantage. It has been seen that customer pressure, regulatory pressure and green creativity positively influence green production. However, the influence of customer pressure is higher, which provide an insight to the decision makers. Additionally, the work has indicated that although green production and green creativity directly have a positive role in reinforcing green competitive advantage. But, the role becomes stronger when it contributes toward green competitive advantage via green brand image. The study concludes that the role of customers is highly significant, they can play a vital role in reinforcing green competitive advantage for the enterprises and also they can influence firms to adopt green production. Similarly, the green awareness programs would be pivotal to create awareness among the general customers for persuading a business environment for cleaner production in the country.

Introduction

The internal and external business environment of manufacturing firms has been significantly changed due to the rapid economic globalization. In order to adapt the changes of the market environment at a faster speed, reducing the operating cost and offering better products to customers, enterprises must emphasize upon innovation. At the same time, resources and environmental issues have become the primary dilemma faced by enterprises. The latest advancements show that a great deal of efforts is being made for environmental protection through innovation (Cole & Grossman, 2018; Shu et. al., 2016). Zailani et al., (2015) argued that due to the excessive consumption of resources and increasingly prominent environmental problems, firms should implement green production to effectively reduce environmental risks and their negative consequences in the whole production process. The concept and practice of green production is getting great attention due to its focus on addressing environmental issues. Green production refers to the process of adding environmental concepts into product life cycle (Przychodzen & Przychodzen, 2015). Even though, the implementation of green production reduces waste and improve productivity in an all-round way (Tseng et. al., 2013). But, to what extent it can be useful in establishing a green image and improving core competitiveness is not explored yet.