Assessing the Influence of Green Innovation on the Market Performance of Small- and Medium-Sized Enterprises

Abstract

Green innovation is a significant component of high-value growth closely linked to China’s 14th five-year plan. This research investigates the influence of green innovation on the market performance of small- and medium-sized enterprises (SMEs). The results are based on the primary data gathered via an online questionnaire survey from 453 respondents working for SMEs in China. The structural equation modeling approach is used for data analysis purposes. The research findings highlight that green innovation positively impacts marketing and products. In turn, marketing innovation positively influences product innovation and market performance, and product innovation also significantly boosts market performance. The study’s findings lead us to suggest that organizations in developing countries should focus on SMEs’ green innovation, which will support them in achieving an effective market performance. The study’s limitations are noted so the findings can be interpreted with caution, and directions for future research are outlined for all stakeholders.