Abstract
People have become more conscientious about the environment in recent years. Increasing environmental awareness drives customers to be more selective about environmentally friendly products and forces governments to adopt environmentally friendly policies. As a result, competition in the market becomes more challenging. Thus, companies cannot remain indifferent to adopting environmentally friendly strategies to be sustainable. In this regard, this study investigates the effect of green innovation on firm performance. We also examined whether the environmental uncertainty moderates the investigated effect. For this purpose, first, data were collected from the first 1000 exporting firms declared in 2019 by the Turkey Exporters Assembly using a survey method. Secondly, factor analyses and regression analyses were performed with the data set obtained from 136 companies. As a result of the analysis, it was determined that green innovation increases both environmental performance and economic performance. It also was found that green innovation positively affects firm performance, but environmental uncertainty reduces this effect. According to these results, it was offered that firms should increase their green innovation activities to achieve better outputs and seek ways to reduce environmental uncertainty to keep these outputs at the maximum level. Finally, the research includes some considerations on the positive implications and potential of green innovation in an open-innovation context.
Highlights
People nowadays have significant environmental concerns and awareness about the environment
Companies are faced with risks such as environmental impacts, regulations, customer demands [21], and environmental uncertainties [30], especially when engaging in green innovation activities
We investigated the effects of green innovation practices on firm performance
Summary
People nowadays have significant environmental concerns and awareness about the environment. They have become more responsive to environmentally friendly products. Companies offer innovative products, production processes, and business methods to reduce the damage, pollution, and other adverse effects they cause to the environment. These products, processes, and methods are integral to the mechanism that ensures environmental sustainability and reduces or prevents environmental damage [1]. “Green innovation” strategy enables companies to reorganize their activities by incorporating green concepts in their business processes [3]
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