ABSTRACT
The main objective of this chapter is to highlight green innovation practices as a tool of environment sustainability and competitive advantage. It also explains their influence on environment and how they contribute to competitive advantage of an organization and help in maintaining environmental sustainability. Sustainability and environmental issues are rapidly emerging as one of the most important topics for strategic business, management, manufacturing, and product development decisions. This heightened awareness of the natural environment has been reflected in the innovative and environmentally conscious products offered to consumers in recent years. Firms develop sustainable programs with the purpose of greening their own products and process while reducing the impact of their activities. In order to eliminate the problems of environmental pollution, the concepts of environmental management such as green management, green marketing, green production, green innovation, etc. are now being pursued. Apart from innovation, the concerns of enterprises regarding environment have become main factor for achieving competitive advantage in the competitive business environment. Organizations tend to rely on developing
innovative products to stay competitive. According to Porter (1989), organizations create competitive advantage through better and new ways to compete in an industry and bring them to the market. Quality innovation gives the company an opportunity to grow faster and better. Through this quality innovation, organizations develop green products that differentiate them from other competitors. The use of green innovation products and processes result in a green economy. This can be thought of one which is characterized by less use of carbon, better in efficiency, and something that makes financial, technical, and social position of society better. In a green economy, there are investments in processes and procedures that limit pollution and carbon emissions. They enhance overall efficiency of resources and control damages to the environment.
