Driving factors for green innovation in agricultural production: An empirical study in an emerging economy

Abstract

The COVID-19 pandemic has caused catastrophic global upheaval with the potential to alter geopolitical and socio-economic norms. This study offers potential insights for the post COVID-19 era by investigating the impact of the determinants of green agricultural production to meet the need for innovation. The study investigates determinants’ impact on green agriculture innovation framing them within four issues (farm operational capacity, technology spillover, environmental awareness, and health concerns). These issues have been directly affected by the pandemic. A model was developed and empirically validated through Confirmatory Factor Analysis and tested using Covariance-based Structural Equation Modeling. A questionnaire survey was used to collect data from 315 farm households in Vietnam. Empirical results indicated that farm operational capacity and technology spillover have a direct positive impact on green innovation and economic performance. However, these factors alone do not play a key role in obtaining environmental performance, unless farm households have adopted green innovation within production. Environmental awareness and health concerns played a mediator role in strengthening green production innovation within the agricultural industry. This study offers several insights that may enhance the agriculture production literature and assist farm households intending to adopt green innovation in the future.