The effect of product innovation, CSR, environmental sustainability and technology innovation on firm performance: a mediated moderation model

Abstract

The importance of product innovations has increased to the centre of priorities at every level of the firm organisational structure. This study examines the possible links between product innovation, environmental sustainability, and CSR with firm performance (FP) relationships in Malaysian fashion industries. This research has employed environmental sustainability (ES) as a mediating variable. We also examine how technology innovation (TI) affects the link between ES and FP as a moderator. First, we collected data from 310 respondents working in the fashion industry in Malaysia using a survey instrument to arrive at the conclusions. Furthermore, managers were chosen as responders because of their crucial role in the firm’s strategic growth. Moreover, data is only collected from firms registered on the Bursa Malaysia Stock Exchange. In addition, data for this research were obtained between February and August 2022. Then we used structural equation modelling (SEM) to analyse the data. The scales’ validity and reliability were rigorously examined, and both were found acceptable. According to the study, product innovation (PI), CSR, and ES each directly influenced the FP. Furthermore, the study concluded that the mediating variable ES and moderator technology innovation positively affected FP.