Financing SME green and sustainable innovation

The concept of green innovation has been increasingly gaining attention among academics, practitioners, and policymakers, although its way of adoption remains unclear. This study tried to address this gap by providing ways to foster green innovation in organizations. In addition, this study aims to discuss various factors that enable green innovation and accompanying opportunities from this initiative. Moreover, inherent challenges to promoting green innovation in organizations are also elaborated within the scope of this study. Furthermore, this study examines the moderating role of green innovation concerning higher education institute (HEI) and vocational education and training (VET) capabilities and environmental dynamism. This study is concluded after exploring the significance of capability between green dynamic capability and green innovation adoption. We believe that this study opens up a new avenue in the area of green and sustainable innovation and contributes to the environmental literature in general. The concept of green innovation has been increasingly gaining attention among academics, practitioners, and policymakers, although its way of adoption remains unclear. This study tried to address this gap by providing ways to foster green innovation in organizations. In addition, this study aims to discuss various factors that enable green innovation and accompanying opportunities from this initiative. Moreover, inherent challenges to promoting green innovation in organizations are also elaborated within the scope of this study. Furthermore, this study examines the moderating role of green innovation concerning higher education institute (HEI) and vocational education and training (VET) capabilities and environmental dynamism. This study is concluded after exploring the significance of capability between green dynamic capability and green innovation adoption. We believe that this study opens up a new avenue in the area of green and sustainable innovation and contributes to the environmental literature in general.

In this study the complex relationships between sustainability practices and green innovation in Indian manufacturing firms, focusing on quality management, green process innovation, and green product innovation are examined. The aim of the study was to investigate the impact of green technological advancements and quality management on the financial performance and investor-perceived value of manufacturing firms. The green process and green product innovations implication on financial performance and investor perception was also explored. With the help of Pearson correlation and regression analyses, the study assessed the impact of quality management and green innovations on financial performance and investor perception. The findings revealed a significant positive correlation between green product innovation and investor perception, endorsing environmentally responsible companies to attract higher investments and improve financial prospects. However, no significant positive correlation was found between green process innovation and financial performance, which may be influenced by upfront costs and delayed benefits. Green process innovation moderates the relationship between quality management and investor perception, while green product innovation mediates the relationship between green process innovation and investor perception. These insights highlight the importance of prioritising green product innovation to enhance investor perception and integrate environmental considerations into quality management. The study's results align with Sustainable Development Goal 9, promoting sustainable industrialisation, innovation, and infrastructure in the Indian manufacturing industry, fostering a more resilient and environmentally responsible sector.

In the rapidly expanding realm of the digital economy, the pivotal role of digital transformation in propelling businesses towards sustainable and progressive development is becoming increasingly evident. Examining how digital transformation motivates firms to innovate in green management practices sustainably is essential. Utilizing a dataset encompassing Chinese A-share listed companies from 2008 to 2020, this study empirically examines digital transformation's effects on the ongoing quest for green innovation. Additionally, it delves into the mediating role that green management innovation plays in this dynamic and evaluates how the fit of the innovation ecosystem within a company's regional environment serves as a moderating factor. The findings indicate that digital transformation strengthens firms' capacities for persistent green innovation. Green management innovation is revealed to be an intermediary in this process; meanwhile, aligning the innovation ecosystem's niche within a company's region amplifies the influence of digital transformation on fostering sustainable green innovation. This research offers valuable theoretical perspectives for organizations that leverage digital transformation as a strategic asset for ecologically friendly manufacturing and long-term expansion. This research examines how digital transformation drives sustainable green innovation in businesses, a significant but less-studied area. We aim to uncover the mechanisms influencing innovation, emphasizing the impact of green management and the fit of the innovation environment. We strive to provide empirical insights that enhance theoretical knowledge at the junction of digital strategy and environmental responsibility, guiding corporate practices toward operational efficiency and ecological sustainability. The study intends to foster a corporate ethos by integrating digital initiatives with green innovation and advancing global sustainable development.

UMK as business actors who produce various necessities of life, are one of the contributors to the causes of environmental damage. The negative impacts caused by UMK activities start from its efforts to obtain raw materials, production processes, and waste produced both at the time of production and afterward. The implementation of green business is becoming increasingly important after most countries in the world have ratified the Sustainable Development Goals (SDGs). With a target of 160 points, the SDGs seek to save the earth, human population and increase prosperity that will be achieved by 2030. One of the UMK that has implemented Green Innovation on products and their manufacturing process is Rumah Mocaf Indonesia, Rumah Mocaf Indonesia is a UMK that sells products made from cassava. These raw materials are the crops of local cassava farmers, so we also contribute to the welfare of farmers. Sustainable Business is a Company's ability to achieve business goals and increase long-term value for shareholders by integrating economic, social and environmental into its business strategy. Green Innovation is known as sustainable innovation, which is a process by which sustainability considerations such as environmental, social finance are integrated into the company's system from the idea stage through research and development (R &D) and commercialism. Sustainability processes impact products, services, technology, and new business and organizational models. Green Product Innovation helps companies to gain a competitive advantage by distinguishing their products from competitors who do not do green product innovation (Reinhardt, 1998). Based on the results of the analysis, it turns out that Rumah Mocaf Indonesia UMK in creating a competitive advantage for products are influenced by green product innovation. Green Product Innovation affects the competitive advantage of products and marketing performance at Rumah Mocaf Indonesia UMK. Meanwhile, the influence of Green Process Innovation on Product Competitive Advantage and Marketing Performance of Green Process Innovation affects the competitive advantage of products at Mocaf Indonesia House UMK. Green process innovation is also known as the innovation process which is an environmentally friendly composition of one or more innovation processes (for example, water recycling desulfurized gas fuel).

As environmental sustainability becomes an increasingly important component of corporate strategy, understanding the internal drivers of green innovation has become a critical research issue. This study examines how executive environmental cognition influences corporate green innovation. Drawing on upper echelons theory and the natural resource-based view, we distinguish between green technological innovation and green managerial innovation and propose that green investment serves as an important mechanism linking executive cognition to innovation outcomes. Using panel data from Chinese A-share manufacturing firms from 2014 to 2023 and a two-way fixed effects model, we find that executive environmental cognition significantly promotes both types of green innovation. Further analysis shows that green investment partially mediates this relationship. Moreover, environmental information disclosure quality strengthens the positive effect of executive environmental cognition on green innovation. By integrating managerial cognition, resource allocation, and information environment perspectives, this study contributes to the literature by revealing the micro-cognitive foundations of corporate green innovation and highlighting the heterogeneous mechanisms through which executive cognition translates into sustainability-oriented innovation.

Although there has been much research into green innovation, limited studies focus on the influence of internal factors on green innovation. This paper investigates whether and how two internal factors, such as green market orientation and absorptive capacity, facilitate green innovation. By dividing green innovation into green product innovation and process innovation, we also test the differential effects of the two internal factors on green product innovation and process innovation. Using a survey of 262 manufacturing firms in China, our results show that green market orientation improves only green product innovation, not green process innovation, whereas green absorptive capacity improves green product innovation and process innovation simultaneously. Green market orientation (green absorptive capacity) has a stronger impact on green product (process) innovation than on green process (product) innovation. Further, we find that a positive interaction effect of green market orientation and absorptive capacity on green product innovation and process innovation is significant. The findings contribute to the green innovation literature by providing an integrated framework for exploring whether the pursuit of green market intelligence and technological knowledge improves green product innovation and process innovation.

The purpose of this study is two-fold: first is to examine the direct effect of green customer integration, green supplier integration, and new product flexibility on sustainable green product innovation (henceforth sustainable innovation), and the second is to assess the mediating role of sustainable green product innovation in the relationship of the independent variables on competitive advantage of the firm. To test these relationships, a quantitative method is used, employing a cross-sectional survey targeting the senior managers of the manufacturing sector in Jordan. Out of 750 surveys administered to respondents, 378 complete responses were obtained, yielding a response rate of 50.4%. Covariance-based structural equation modelling (CBSEM) using AMOS 28 is utilized to analyse the data. The results suggest that green customer integration, green supplier integration, and new product flexibility have a significant impact on sustainable green product innovation. The results also suggest that sustainable green product innovation has a significant mediating effect on the relationship between the three predictor variables and competitive advantage. In addition, new product flexibility partially mediates the relationship between green supplier integration and sustainable green product innovation.

This research aims to examine the business ethics associated with sustainable green resource innovation in the context of social entrepreneurship. Secondary data was obtained from existing literature on sciencedirect.com from the last 10 years. A descriptive approach was used to describe the phenomenon, with a focus on business ethics and green resource innovation. This article discusses the concepts of social entrepreneurship and sustainable entrepreneurship, and the importance of technology to support green innovation. Business ethics in the context of social entrepreneurship, collaboration, responsibility, and green resource innovation are the focus of discussion in this article. Business ethics in social entrepreneurship is essential to foster sustainable green resource innovation. Green innovation is increasingly important in business due to increasing business interest in sustainability and customer awareness of environmental issues.

Environmental degradation is a significant concern that jeopardizes global sustainable production and consumption. In this instance, ASEAN (Association of South-East Asian Nations) has contributed to a considerable amount of carbon dioxide (CO2) emissions throughout the modernization phase. However, there is a paucity of information within this region on the non-linear impact of transitions in green and sustainable technological innovation on CO2 emissions. In response, the present work endeavors to bridge the existing research gap by examining the asymmetrical and periodic interactions between green and sustainable technological innovation and CO2 emissions by employing cross-sectional time series data of 7-ASEAN economies over the period 1990 to 2017. The co-integrating connections between the specified parameters were established using the Wester-Lund cointegration technique. Further, the Cross-Sectionally Augmented Autoregressive Distributed Lag estimator revealed that negative disruptions in green and sustainable technological innovation lead to CO2 emissions during downturns. Secondarily, the findings confirmed positive surges in green and sustainable technological innovation minimize CO2 emissions during times of economic expansion. Also, as compared to foreign direct investment, current statistics indicate that renewable energy utilization seems to have a substantial impact on reducing carbon emissions. Besides, the robustness analysis corroborated the uniformity and validity of the given outcomes. Consequently, the outcomes divulged a counter-cyclical interaction between green and sustainable technological innovation and CO2 emissions.

In each stage of the supply chain system, the sustainable green innovation plays a critical role. Moreover, there may exist substitution effect between products, and the spillover effect of learning characteristics generated by sustainable green technology investment will enable other related companies to obtain certain profits. Therefore, the spillover effect and substitution effect of sustainable green technology investment will change the pricing decision, demand decision and the profits of the two competing companies. Based on the spillover effect characteristics of sustainable green technology innovation on the two competing companies, we build mathematical models and analyze the models with numerical results. The research results are as follows: In a duopoly market, the Nash equilibrium profits of the two competing companies will decrease as the product's substitutability increases, and the Nash equilibrium profit of one company will change due to the change of the scale of the other's sustainable green technology innovation investment. Within a certain range, when the market has demand for green products, both competing companies have incentives to take corresponding investments and obtain profits, but there are also have risks. At the same time, a good sustainable green technology innovation investment market environment will increase corporate profits, but when it exceeds a certain threshold value, it will also reduce corporate profits. Moreover, companies in the status of followers have inherent disadvantages, so when the market environment and their own conditions are sufficient, they should make decisions in a timely manner.

Knowledge management (KM) is vital for fostering sustainable innovation, enhancing organizational competitiveness, and aligning with environmental health and the United Nations Sustainable Development Goals (SDGs) in healthcare. A meta-analysis and systematic review of recent peer-reviewed studies reveal that KM practices drive incremental and radical innovation, with digital transformation catalyzing green innovation and effective knowledge sharing. Leadership plays a pivotal role in creating collaborative environments and fostering learning cultures. Moreover, the analysis highlights the importance of psychological safety in addressing knowledge sharing and hiding paradoxes. In public health systems, effective knowledge management processes significantly improve organizational resilience and responsiveness to emerging health challenges while facilitating the integration of health informatics into primary healthcare for better decision-making and more equitable outcomes. Integrating KM with sustainability goals, particularly in healthcare, aligns with SDG targets such as promoting health (SDG 3), supporting sustainable industrial innovation (SDG 9), and combating climate change (SDG 13). For example, green innovation in healthcare can reduce environmental impacts by optimizing resource use and improving operational efficiency. Leadership’s ability to foster trust and collaboration is central to achieving these goals, as it cultivates a culture of open knowledge exchange critical for innovation and organizational resilience. This research offers actionable strategies for healthcare organizations, including developing KM frameworks aligned with digital transformation efforts and sustainability objectives. By prioritizing leadership development and fostering cultures of collaboration, organizations can leverage KM to advance environmental health initiatives, address global health challenges, and meet SDG targets. Future research could explore AI’s potential to enhance KM practices and cross-cultural dynamics in healthcare knowledge sharing, further contributing to sustainable innovation and equitable health outcomes.

Purpose This study examines the pathways through which institutional pressures, specifically environmental regulatory and green market pressures, influence corporate sustainability. It focuses on the mediating roles of green knowledge and green innovations, integrating the Porter hypothesis with institutional theory and knowledge resource-based views. Design/methodology/approach The research utilizes structural equation modeling (SEM) on data collected from 414 manufacturing firms in China. The study investigates the relationships between environmental institutional pressures, green knowledge, green innovations (process and product), and their collective impact on sustainable performance. Findings The findings confirm that institutional pressures positively affect green knowledge, which in turn enhances both green process and product innovations. These innovations significantly contribute to sustainable performance across environmental, economic, and social dimensions. Furthermore, green knowledge acts as a crucial mediator, particularly in translating green market pressure into green process and product innovation. Practical implications Organizations can leverage green knowledge as a critical intangible asset to navigate institutional pressures and foster green innovation. Policymakers should consider strengthening green market mechanisms to encourage sustainable corporate practices and innovation, particularly in emerging markets. Originality/value This study provides a comprehensive framework linking institutional pressures, green knowledge, and innovations to sustainable performance. By integrating multiple theoretical perspectives, it highlights the importance of green knowledge and innovation strategies for achieving sustainability in industrial contexts.

This paper seeks to investigate the impact of ambidexterity (exploration and exploitation) on green product innovation and the success of new products through the effects of sustainability, considering the moderating role of customer pressure. This research proposes a theoretical model that was tested using structural equation modelling (SEM) and a multigroup analysis to understand the moderating role of customer pressure. A 23‐item questionnaire was developed to explore the proposed relationships, applied in two different moments, answered by two other critical respondents from each company. At the end of the second collection moment, 336 valid questionnaires were collected from a sample of industrial SMEs in Portugal. The results show a positive influence of ambidexterity on sustainability and, therefore, on new product success and green product innovation. In addition, green product innovation increases the success of new products due to the growing demand for more sustainable products. Furthermore, the chain of effects between ambidexterity and further product success was strengthened when customer pressure was higher. This study stresses the need to actively manage exploration and exploitation investments to enhance ambidexterity, especially when sustainability and green innovation are the expected outcomes. The originality of this research is related to the contributions of hierarchical dynamic capabilities, combining and balancing exploration and exploitation, to produce successful ambidextrous companies in sustainability and green strategies.

This chapter is aimed to analyze the relationships between environmental sustainability, urban ecosystems and green innovation. The purpose of this paper focuses on the assumption to reviewing the work done on green areas innovation in urban settings and identifying the social, niche, incremental and radical types of innovation, as well as the dimensions of sustainable urban ecosystems associated with the concept, encompassing the risks inherent to administrative, technological and operational innovations. The method employed is the critical analytical review of literature and further discussion on the issues focusing the city´s experience on managing the formulation, generation, development, implementation and evaluation of new behaviors and ideas in green innovation. It is concluded that the green innovation is directly related with the environmental sustainability and urban ecosystems. The interest of this analysis lies in providing support to urban settlements in managing the risks inherent in green area innovation, incremental or radical as a community’s management would experience in relation to the environmental sustainability in urban ecosystems.

In the context of growing environmental challenges, consumer engagement in green innovation is becoming essential to sustainable development. This study examines the predictive role of cognitive (awareness and knowledge) and affective (emotions and concern) components of consumer attitudes towards sustainability and green innovations in shaping willingness to engage (WTE). The theoretical framework integrates the Theory of Planned Behavior (TPB), the Value-Belief-Norm Theory (VBN), and the Elaboration Likelihood Model (ELM). Empirical data were collected from 1,373 Polish consumers using a self-administered CAWI survey and analyzed using Structural Equation Modeling (SEM) and Necessary Condition Analysis (NCA). The findings show that affective attitude is the only direct predictor of WTE. In contrast, environmental awareness, concern, and cognitive attitude function as necessary but insufficient background conditions, influencing engagement indirectly. This confirms the differentiated roles of distal and proximal attitudes and highlights the complementary value of SEM and NCA. The study offers a theoretical contribution by combining three behavioral models and a dual-method approach. The results also provide practical implications for designing communication strategies that integrate emotional engagement with cognitive reinforcement to support consumer participation in sustainable innovation.