Analysing the effect of low carbon product design on firm performance

Purpose - The purpose of this study is to analyze the effect of low carbon product design on firm's competitiveness and economic performance. It also examines the mediating role of the proactive environmental strategy and eco-innovation on low carbon product design, competitiveness and economic performance. Design/methodology/approach - Through a questionnaire-based survey, the data were collected from 69 Indian manufacturing firms and analyzed using a variance-based structural equation modeling (SEM) technique to test the proposed hypotheses. Findings - The results show that the low carbon product design significantly improves firm's competitiveness and economic performance, and proactive environmental strategy significantly mediates the relationship between low carbon product design and firm's competitiveness. Practical implications - This study provides a framework for the adoption of low carbon product design. It demonstrates how manufacturing firms can implement environmental friendly product design. It also analyses the contextual factors that ensure a successful low carbon product design. Originality/value - This article investigates the economic benefit of low carbon product design, thus filling lacuna in existing research.