Green Innovation Performance Research Articles

The relationship between green product innovation and accounting-based financial performance: insights from non-linear modeling

Purpose This study aims to investigate the non-linear relationship between green product innovation and accounting-based financial performance in emerging East Asian economies. Specifically, this research explores how green product innovation affects financial performance through both cost-saving and productivity improvement effects. Design/methodology/approach Return on assets (ROA) is used to measure accounting-based financial performance. Using DuPont analysis, the author decompose ROA into two components: return on sales (ROS) to capture the cost-saving effect and asset turnover (AT) to capture the productivity improvement effect. Fixed-effects regressions are applied to analyze panel data from 409 non-financial listed firms in emerging East Asia from 2015–2019. To ensure robustness, the author uses a two-step generalized method of moments estimator to address potential endogeneity issues. Findings The author demonstrates a significant U-shaped relationship between green product innovation and ROA, with an initial decline in ROA followed by a subsequent increase. Additionally, the author observe a linear positive correlation between green product innovation and ROS, while the relationship between green product innovation and AT is non-linear and U-shaped. The analysis reveals that green product innovation may initially decrease ROA due to lower productivity, but it ultimately boosts total profitability through cost savings and productivity improvement. Originality/value The study advances the existing literature by exploring how cost-saving and productivity improvement effects contribute to a more detailed understanding of the U-shaped relationship between green product innovation and financial performance in emerging East Asia.

Enhancing Competitiveness in Pakistan: The Role of Green Product Innovation Performance, Artificial Intelligence Adoption, and Government Involvement in Business Strategies

Enhancing Competitiveness in Pakistan: The Role of Green Product Innovation Performance, Artificial Intelligence Adoption, and Government Involvement in Business Strategies

Sustainable futures: leveraging green intellectual capital, HRM, innovation and leadership

PurposeAchieving sustainability goals for manufacturing firms depends on green human resource management practices and green intellectual capital. This study explores how sustainable approaches, such as green human resource management practices, green intellectual capital, sustainable leadership and green innovation, enhance sustainable performance. Therefore, this study aims to determine whether green intellectual capital and innovation mediate between green human resources management practices and sustainable performance in Pakistan’s manufacturing industry.Design/methodology/approachThe data were collected from 458 executives representing 155 (SMEs) in the manufacturing sector in Pakistan using a self-administered questionnaire. Partial least squares structural equation modeling was employed for the data analysis.FindingsThe results indicated that green human resource management practices positively impact green intellectual capital, green innovation and sustainable performance. Additionally, green intellectual capital significantly affects both green innovation and sustainable performance. Furthermore, green intellectual capital and innovation mediate the relationship between green human resource management practices and sustainable performance. Results also reveal that sustainable leadership significantly moderates the relationships between green human resource management practices, green intellectual capital and green innovation.Practical implicationsThe results of this study assist practitioners in appreciating and assessing the significance of green intellectual capital and green human resource management techniques. It also emphasizes the importance of green innovation and sustainable leadership in fostering sustainable performance.Originality/valueThis study guides managers and policymakers on how green human resource management practices, intellectual capital, innovation and sustainable leadership enable firms to achieve sustainable performance goals.

Influence of a Green Environmental Orientation on Corporate Sustainable Performance in the Manufacturing Sector

As sustainability becomes a strategic imperative in the manufacturing sector, firms are increasingly adopting green environmental practices to enhance their competitive advantage and long-term viability. This study investigates the influence of an Internal (IGEO) or External Green Environmental Orientation (EGEO) on the Green Competitive Advantage (GCA), Green Innovation (GI), and Sustainable Performance (SP). Specifically, this research assesses the direct impact of an IGEO and EGEO on the GCA and GI, as well as their mediating roles in achieving sustainability objectives. To empirically validate the proposed conceptual framework, this study employs structural equation modeling (SEM) using survey data collected from 468 manufacturing firms in China. The findings reveal that an IGEO and EGEO are significant drivers of a GCA and GI, both of which, in turn, positively influence Sustainable Performance. The results underscore the importance of aligning internal sustainability initiatives with external environmental expectations to achieve superior long-term sustainability outcomes. This study contributes to the literature on green management by offering empirical evidence of the mechanisms through which a green orientation fosters sustainability. The insights derived have practical implications for firms seeking to integrate their internal capabilities with external environmental demands to develop a comprehensive and effective sustainability strategy. These findings serve as a valuable resource for researchers and practitioners aiming to enhance green competitiveness and innovation in the manufacturing sector.

Determinants of enterprise green innovation performance: Examining the role of environmental orientation, green practices, and organizational commitment

This study examines the links between environmental orientation (EO), green innovation performance (GNP), and green innovation practices (GIP), with technological capabilities (TEC) acting as a moderator. It offers a framework that combines the Resource-Based View (RBV) and the Dynamic Capabilities View (DCV), wherein dynamic capabilities (technological agility) and static resources (organizational commitment, strategic focus) work together to promote sustainable innovation. PLS-SEM, or partial least squares structural equation modeling, was used to analyze data from 535 SMEs in Ghana. The findings indicate that green organizational commitment (GOC) and EO incorporating sustainability into internal operations and culture and external stakeholder collaboration significantly increase GNP. By facilitating the effective deployment of green technologies, TEC strengthens the GOC-GNP relationship. The study emphasizes the difficulties SMEs face in developing nations such as Ghana and suggests solutions according to local limitations (such as a lack of resources or regulatory gaps) and stakeholder requirements. Combining RBV and DCV into a multi-level framework that addresses firm- and industry-level factors (e.g., market demand, regulation) theoretically fills in the gaps in the sustainability literature. It provides managers with practical guidance on how to link TEC, GOC, and EO for eco-competitive results. Validated context-sensitive EO, GOC, and TEC measurement scales provide instruments for cross-regional study and enhance knowledge of green innovation in under-researched areas such as sub-Saharan Africa.

Impact of accelerated depreciation policies for fixed assets on firms’ green innovation performance

Impact of accelerated depreciation policies for fixed assets on firms’ green innovation performance

Fiscal & tax incentives, ESG responsibility fulfillments, and corporate green innovation performance

Fiscal & tax incentives, ESG responsibility fulfillments, and corporate green innovation performance

Ethical leadership, green innovation and environmental performance in the restaurant industry

PurposeThis study aims to examine how employees’ perception of the ethical conduct of their leaders affects their level of green innovation and environmental performance. Therefore, this study investigated green innovation as a mediator between ethical leadership and environmental performance, specifically within the context of Pakistani restaurants.Design/methodology/approachData was collected from the frontline employees using a convenience sampling method having a sample size of 213 respondents. The hypothesized model was analyzed through structural equation modeling using SmartPLS v3 software.FindingsThis study shows a (i) positive relationship between ethical leadership and environmental performance, (ii) positive association between ethical leadership and green innovation, (iii) positive relationship between green innovation and environmental performance and (iv) green innovation mediates between ethical leadership and environmental performance.Research limitations/implicationsThis research suggests that top management of the restaurants needs to focus on exhibiting ethical leadership behavior, thereby fostering green innovation practices that will improve the environmental performance of Pakistani restaurants.Originality/valueThe current study is novel as it investigates the association between ethical leadership, green innovation and environmental performance, specifically within the context of Pakistani restaurants.

Green Innovation Performance and Employee Wellbeing in the Spanish Wine Industry: Unveiling the Role of Green Human Resource Management and Corporate Social Responsibility

This research examines the impact of Green Human Resource Management (GHRM) and Corporate Social Responsibility (CSR) on Employee Wellbeing (EW) and Green Innovation Performance (GIP) in Spanish wineries. It also investigates the mediating role of EW in the relationships between GHRM-GIP and CSR-GIP. Additionally, age, size, and PDO membership are considered as control variables. A conceptual model was developed and tested using structural equation modeling (PLS-SEM) with data from 196 Spanish wineries. The results indicate positive and significant relationships between the direct links, with EW partially mediating both GHRM-GIP and CSR-GIP relationships. The study contributes to the understanding of the benefits of GHRM, CSR, and happiness management in the wine industry. It is unique in examining the joint impact of GHRM and CSR on GIP and the mediating role of EW in these relationships.

The Green Blueprint: Founder Clan Culture Imprints and Green Innovation in Chinese Family Firms

Drawing on upper-echelon, imprinting, and agency theories, this paper investigates the influence of founder CEOs’ clan cultural values on family firms’ green innovation performance and examines the moderating roles of family involvement and the intensity of government environmental regulation. Using data from 1678 Chinese public family firms over the period from 2012 to 2020, which include 9048 firm–year observations, our results show a significant positive effect of founder CEOs’ clan cultural values on firms’ green innovation practices. Additionally, this positive effect is weakened when the level of family involvement is high, due to conflict. Moreover, the positive influence is strengthened when government environmental regulation is more stringent.

A Study on the Impact of ESG Performance on Green Innovation Performance of Listed Manufacturing Enterprises in China

In the context of the global economy, environmental issues have garnered significant attention, and the green innovation performance of the manufacturing industry, as a pivotal component of economic development, has emerged as a pivotal concern in achieving sustainable growth.The concept of Environmental, Social and Corporate Governance (ESG) has garnered considerable global attention, prompting an increasing number of manufacturing enterprises to integrate ESG factors into their strategic planning to enhance competitiveness and social responsibility. However, manufacturing industries often encounter challenges such as technological limitations, financial constraints, and market competition when pursuing green innovation pathways.Therefore, exploring the impact of ESG performance on green innovation performance can provide enterprises with strategic references. Such references can facilitate the analysis of the correlation mechanism between ESG and green innovation performance. This, in turn, can assist enterprises in acquiring financial support, optimizing resource allocation, and reducing innovation costs. Concurrently, enterprises can enhance their corporate image, garner social recognition, and cultivate a more conducive external environment for green innovation by fortifying their ESG management.In consideration of the aforementioned background, this study utilizes the ESG performance of the manufacturing industry as its point of departure for research. The study's objective is to examine the impact of ESG performance on the green innovation performance of manufacturing industry enterprises. To this end, it employs a two-way fixed effect model to investigate the impact of ESG performance on green innovation performance. The findings of the study demonstrate that commendable ESG performance exerts a discernible stimulatory influence on the green innovation performance of enterprises. Consequently, manufacturing enterprises are required to proactively adopt the concept of ESG development, explicitly acknowledge the beneficial impact of ESG performance on green innovation performance, and consequently prioritize ESG management.

Unlocking sustainable performance in the health-care sector: the dynamic nexus of artificial intelligence, green innovation and green knowledge sharing

Purpose This study, using stakeholder theory and diffusion of innovations (DOIs), aims to examine the readiness of Omani health-care firms to adopt artificial intelligence (AI). This adoption is seen as a key step towards ensuring green innovation and sustainable performance (SP) in the health-care sector. Design/methodology/approach This study adopted convenience and referral sampling techniques to enhance the response rate for the limited number of health-care firms using AI. Using explanatory research design, structure equation modelling and employees as the unit of analysis, a random sample technique is used to distribute the structured questionnaire to five hospitals in North Al-Batinah, including Shinas, Liwa and Sohar cities. Smart PLS 4.1 analyses the responses. Findings The research demonstrates that AI could significantly enhance SP, a finding that is of utmost importance in the current health-care landscape. This study also tested green knowledge sharing as a boundary condition. Furthermore, the study’s findings indicate that AI leads to the emergence of green innovation and SP, suggesting that firms are willing to adopt AI and achieve the sustainable development goals (SDGs). Practical implications This study implies that stakeholders, including the Omani Government and Middle Eastern firms, should prioritize investments in AI technologies tailored to sustainability initiatives. Originality/value This research study makes three significant and unique contributions. Firstly, it uniquely integrates stakeholder and DOIs theories to explain the mediating function of green innovation and the moderating effect of green knowledge sharing. Secondly, it provides a unique Middle Eastern context, where the government’s focus on the health sector is crucial. Finally, this study outlines a clear and actionable pathway for the Middle East to achieve the SDGs, thereby enlightening the reader on the potential of AI in the health-care sector.

Green Innovation and Environmental Performance: The Moderating Roles of Governance and Policy

This study investigates the impact of green innovation (GI) on corporate environmental performance (CEP), while examining the moderating roles of corporate governance practices (CGPs) and environmental policy pressure (EPP). This study uses advanced statistical methods to ensure the reliability of the results. These include techniques such as propensity score matching (PSM), difference-in-differences (DID) analysis with China’s National Green Development Fund (2020) as the policy intervention, and the generalized method of moments (GMM), and this study examines how internal governance mechanisms and external regulatory pressures influence the GI-CEP relationship. The results show that GI significantly increases CEP, and that this effect is amplified by robust CGPs and EPP. By analyzing data from 4026 firm-year observations of A-share listed Chinese companies (2017–2022), the findings highlight the importance of innovation, governance, and policy in achieving sustainable environmental outcomes. This study provides valuable insights for firms and policymakers to foster green innovation and align corporate strategies with global sustainability goals.

The Mediating Role of Green Innovation and Environmental Performance in the Effect of Green Transformational Leadership on Sustainable Competitive Advantage

Owing to global warming and changing environmental factors, the world has been experiencing negative and major changes. Society is showing a strong reaction to these environmental problems through marches, protests, and political initiatives, which also demonstrate the need for a new understanding of leadership. In this respect, green transformational leadership emerges as a potential solution. The current study aims to determine the mediating role of green innovation and environmental performance in the effect of green transformational leadership on sustainable competitive advantage. With this aim, a model was formed by utilizing the Natural Resource-Based View (NRBV) theory. To test the model, data were collected through a survey answered by 412 people working in SMEs in Istanbul and analyzed via the Smart-PLS program. The results indicate that green innovation had a moderate mediating role, and environmental performance had a low mediating role in the effect of green transformational leadership on sustainable competitive advantage. In light of these results, the sustainable competitive advantage predicted by the NRBV theory was found to have been achieved.

Steering Sustainability: The Interplay of CEO Imprints, Organizational Performance, and Government Policies in Green Innovation

How do CEOs’ unique early-life experiences—particularly those shaped by formative influences such as military training—impact their subsequent strategic decision-making in green innovation? By integrating upper-echelon theory, imprinting theory, and the green innovation literature, this paper explores whether and when a CEO’s military background influences a firm’s adoption of green innovation practices, specifically within an emerging market context. Analyzing a sample of 1419 Chinese listed firms over the period from 2007 to 2016, our results reveal a significant positive effect of a CEO’s military experience on the firm’s green innovation performance. Furthermore, we find that a firm’s positive financial performance amplifies the influence of the CEO’s military imprint on green innovation outcomes. However, the intensity of government environmental regulation moderates this effect, weakening the relationship between the CEO’s personal values and the firm’s green innovation performance. Theoretical and practical implications are discussed.

Understanding Environmental Performance in Hospitality Industry: Role of Green Human Resource Management, Environmental Strategy, Environmental Legitimacy and Green Innovation

Literature indicates that environmental performance has received special attention due to the increasing awareness of business managers on its positive impacts on the economy, society and environment. However, few studies have been conducted to examine the drivers of green innovation i.e. green human resource management, environmental strategy, environmental legitimacy towards environmental performance in the context of hospitality industry especially in developing countries. This study aims to examine the relationship between green human resource management, environmental strategy, environmental legitimacy, green innovation, and environmental performance in the hospitality industry both in direct and mediation relationships. Data were collected from hotel and restaurant managers in Bali, Indonesia. Smart-PLS was used to examine the validity and reliability of the proposed structural equation modeling. The findings of the present study revealed that green human resource management significantly influences environmental strategy, legitimacy, green innovation and environmental performance. Furthermore, environmental strategy, legitimacy, and green innovation mediate the relationship between GHRM and environmental performance. This study contributes to theoretical and practical implications and provides valuable suggestions, especially for managers in the hospitality industry for environmental conservation.

Green process innovation and financial performance in small and medium-sized enterprises in a developing Country: Role of resource orchestration

Green process innovation and financial performance in small and medium-sized enterprises in a developing Country: Role of resource orchestration

The mediating role of green innovation in the relationship between environmental orientation and firm performance: Evidence from Indonesia

This study aims to examine the mediating role of green innovation in the relationship between environmental orientation and firm performance. A sample size of 153 publicly listed companies on the Indonesian Stock Exchange that participated in the PROPER (Public Disclosure Program for Environmental Compliance) program between 2020 and 2023 was chosen, yielding 612 firm-year observations. The Hayes Process macro model version 4 in SPSS 27 was utilized in this study for hypotheses testing. This study found environmental orientation has a positive and significant effect on green innovation. A similar effect was also found on the relationship between green innovation and firm performance. However, the direct effect of environmental orientation on firm performance was insignificant. The results confirmed that green innovation mediates the relationship between environmental orientation and firm performance. The result also reinforces the argument that green innovation plays a key role in improving the performance of business entities in a developing country like Indonesia This study implied that having an environmental orientation encourages firms to be more innovative in creating green processes and products in a variety of ways. It implied that top management should be encouraged to analyze and improve their green innovation practices for maintaining sustainable outperformance from their competitors. The result also implied that policymakers should create an enabling atmosphere to support corporate green innovation. Progressive policies such as subsidies or tax rebates can encourage firms to invest more in green innovation practices.

How speculative culture shapes green innovation performance: A dual regional and institutional lens

Background: Regional culture plays a crucial role in green innovation performance, yet its impact has not been sufficiently explored, particularly within the African context.Aim: The study aims to assess how speculative culture within regions affects corporate green innovation performance in the context of regional cultural integration.Setting: The research uses data from Chinese A-share listed companies from 2008 to 2020, specifically focussing on companies with various ties to Africa.Method: This study employs an empirical research method using multiple regression analysis, moderation analyses, along with robustness checks and endogeneity tests to ensure the validity and reliability of the findings.Results: Findings indicate that a speculative culture inhibits green innovation, a result that remains robust across various endogeneity tests. Traditional ecological culture, trust culture and cultural diversity mitigate this negative effect, while local clan culture exacerbates it. Stakeholder supervision and external regulatory pressure from the government effectively weaken the inhibitory effect of speculative culture.Conclusion: This study highlights the significant and complex role of regional cultures in shaping green innovation outcomes, underscoring the importance of institutions to counteract adverse cultural influences.Contribution: This research enhances the understanding of green innovation drivers by exploring the interactions between various cultural dimensions and their impact, emphasising the alignment of formal institutions to achieve sustainable green innovation. It offers several recommendations for enhancing corporate resilience and developing effective green innovation strategies.

Talent Introduction Policies, Optimal Labor Allocation, and Corporate Green Innovation

Under the “dual carbon” strategy, innovation driving has become the core force for corporate green transformation, with human resources, a key element of green innovation, increasingly gaining attention. This study utilizes data from A-share listed companies to evaluate the impact of China’s urban talent introduction policies on corporate green innovation, focusing on the three dimensions of green product, process, and management innovation. The results reveal that urban talent introduction policies significantly promote corporate green innovation in three areas: green product innovation, green process innovation (end-of-pipe pollution control), and green management innovation. The influx of high-quality talent and optimization of the labor structure represent vital pathways for achieving this impact. Different talent types play different roles in different dimensions of green innovation. Heterogeneity analysis indicates that talent introduction policies have a stronger promoting effect on the green innovation performance of large enterprises, technology-intensive industries, and enterprises in relatively weak regional economies. For enterprises with public–private partnerships, talent admission policies have a more pronounced impact on their green product innovation and process innovation (end-of-pipe pollution control). Furthermore, the impact of talent policy on corporate green innovations in products and processes varies with the intensity of local government intervention. This study emphasizes the key role of talent introduction policies in promoting green innovation, providing theoretical foundations and policy references for implementing sustainable development strategies and environmental protection objectives.