Abstract
This study examines how market demand affects green product innovation, and firm performance in the context of Vietnamese motorcycle industry. The paper seeks to answer two key questions: (a) how does market demand influence a firm’s green product innovation? and (b) how can green product innovation affects firm performance? This study collected a total of 208 valid questionnaires from four leading foreign motorcycle firms in Vietnam. The empirical findings show that market demand is positively correlated to both green product innovation and firm performance; while green product innovation performance is also positively correlated to firm performance. In addition, this study also categorizes three types of green product innovation and discusses their effects on market demand and firm performance.
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