Green Innovation Performance Research Articles

Investigating a connectedness between green innovation and ocean health performance in Vietnam

The blue economy (BE) development has recently grown in importance, but scholars have kept silent on their determinants, especially in developing countries. This article focuses on the role of green innovation (EI). Utilizing the R2 decomposed linkage method, our investigation aims to delineate connections, particularly differentiating between contemporaneous and lagged linkages. This innovative approach is employed to examine the return transmission mechanism among the Ocean Health Index (OHI), green innovation (EI), nonrenewable energy (NONRENEW), and CO2 emissions (CO2). The dynamic total linkage, subject to temporal variation, is contingent on economic events. Our findings emphasize the heightened influence of lagged linkage prevailing over contemporaneous linkage for all four variables. As observed before 2019, ocean health was acknowledged for its prominent role as a net receiver. Subsequently, ocean health was recognized as a net receiver in contemporaneous dynamics, while its significant impact as a net transmitter in lagged linkage persisted. The results have important policy implications for governments in promoting the use of green innovation to enhance blue health performance in Vietnam.

Does CEO Power Affect Manufacturing Firms’ Green Innovation and Organizational Performance? A Mediational Approach

In this research work, we investigate the direct impact of CEO power on corporate performance, as well as the mediating role of green innovation in this hypothesized relationship. In this study, we use observation data collected from 780 listed manufacturing companies, explicitly focusing on the Karachi Stock Exchange (KSE), and adopt a GMM (generalized method of moments) model for testing our hypotheses. The results of this research show that CEO power has a negative impact on sustainable corporate performance, while the mediating role of green innovation positively and completely regulates the effect of CEO power on enterprises’ sustainable performance. This study adds novelty to the literature as it explores the influence of green innovation in manufacturing enterprises on CEO power and firm performance and observes the direct impact of green innovation and CEO power on sustainable business performance. The results of this study show that a green innovation strategy significantly affects CEO power and manufacturing firm performance and that companies that adopt green initiatives can increase corporate value and improve their reputation among stakeholders. The conclusions of this study have important implications for both theory and practice in this field.

Market-based debt-to-equity conversion and corporate green innovation

Using a sample of Chinese listed data, this paper examines how market-based debt-to-equity conversions affect firms’ green innovation performance to offer policy recommendations that bolster sustainable development. The empirical findings show that these conversions can enhance the level of green innovation and that risk-taking has a mediating effect. Furthermore, enterprises can alleviate their financing constraints through debt-to-equity conversions, thus regulating green innovation behaviour.

Maximizing green innovation: the impact of government subsidies and R&D in digital supply chains

PurposeThis research examines the relationship between green innovation and firm performance, focusing on identifying the moderating effects of government subsidies and digital transformation R&D investments. The study aims to provide insights on how firms can leverage green innovation for enhanced performance while addressing potential drawbacks.Design/methodology/approachThis study adopts a mixed-methods approach, utilizing both analytical models and empirical analyses. It investigates the curvilinear relationship between green innovation and firm performance and explores the moderating roles of government subsidies and digital transformation R&D investments.FindingsThe findings reveal an inverted U-shaped relationship between green innovation and firm performance, indicating that initial investments in green innovation led to performance improvements, but beyond a certain point, the returns diminished. The study also finds that government subsidies and digital transformation R&D investments significantly enhance the positive impact of green innovation up to the optimal threshold and help mitigate negative effects.Practical implicationsThe research provides practical guidance for firms on managing their green innovation investments to maximize performance benefits. It also offers insights for policymakers on designing effective subsidies and support mechanisms to promote environmental sustainability and economic growth.Originality/valueThis study contributes to the literature by elucidating the complex relationship between green innovation and firm performance and highlighting the critical roles of government subsidies and digital transformation R&D investments. It offers valuable implications for businesses seeking to balance environmental and economic objectives and policymakers aiming to foster sustainable and profitable practices.

System dynamics simulation of green innovation and policy optimization considering decision bias

Promoting the development of green innovation is crucial for achieving the green transformation of society. This paper considers the decision bias of different agents in policy implementation and presents a theoretical model that captures the structure of the green innovation system. The model includes six subsystems: government, technology, public, energy, environment, and population. The study examines the transmission effect of green innovation and the influence mechanism of multiple decision biases on policy combination effects using a combination of various policy tools. The results show that: Various policy tools and their implementation differences have distinct effects on the green innovation and environmental performance. In most cases, the synergistic policy mix effect, surpassing the impact of individual policies, is driven by the resource effect. However, the synergistic effect of policy combination may not be fully realized, leading to potential conflicts. Due to various decision biases, particularly the gap in the public's green behavior, the policy mix faces challenges in achieving immediate synergistic effects. Combining tax policies with other policy instruments increases the risk of incoherence and inconsistency. However, in the long term, the combination of policy tools can exert strong late-developing advantages. This study provides insights for green innovation policy improvement.

The nexus of technology orientation and green innovation performance: The potential mediating role of innovation capability

This investigation explores the influence of technology orientation and innovation capability on the green innovation performance among small and medium-sized enterprises (SMEs) in Pakistan, utilizing a quantitative research method. Data were gathered from a variety of demographic databases, and structural equation modeling was employed to examine the impact of these factors on SMEs' business performance. Central to this study is the development of a research model that elucidates the interconnections between technology orientation, innovation capability, and green innovation performance. Through a survey conducted among 298 owners and managers of manufacturing firms, the study leverages Partial Least Squares Structural Equation Modeling (PLS-SEM) for its analysis. Findings indicate that technology orientation and innovation capability significantly contribute to enhancing green innovation performance in SMEs, thereby facilitating a competitive advantage. The investigation underscores the importance of bolstering innovation capabilities to fortify SMEs' competitive positioning.

How does directors' and officers' liability insurance affect green innovation? Evidence from China

This paper examines the relationship between directors' and officers' liability insurance (D&O insurance) and firms' green innovation. Using a large dataset on firms' green innovation achievements of Chinese listed firms over 2002–2019, we show that firms with D&O insurance significantly boost their green innovation performance, particularly those facing higher litigation risks, without political connections, and exhibiting corporate governance. Additionally, we find that the green innovation of insured firms significantly bolsters firm value, indicating that D&O insurance helps achieve a win-win situation between shareholder value and environmental sustainability. The mechanism analysis shows that the supervision effect of D&O insurers in mitigating managerial self-interest behavior is the underlying channel through which D&O Insurance affects firms’ green innovation. Overall, our findings suggest that D&O insurance encourages firms' directors and officers to actively pursue green innovation, thereby positively impacting firm value.

The impact of government subsidies on green innovation performance in new energy enterprises: A digital transformation perspective

This paper selects data from A-share listed companies in China's new energy industry from 2007 to 2021 and constructs a fixed-effects negative binomial regression model to examine the impact of government subsidies on corporate green innovation performance and its mechanism. It further investigates the moderating effects of digital transformation and environmental regulation. The research finds that government subsidies significantly enhance corporate green innovation performance, and this conclusion remains valid after a series of robustness tests. Both corporate digital transformation and environmental regulation amplify the positive effect of government subsidies on green innovation performance. Meanwhile, the impact of government subsidies on green innovation performance varies with the nature of corporate ownership, industry characteristics, and company size. In non-state-owned, high-tech, and non-heavy pollution enterprises, the enhancing effect of government subsidies on green innovation performance is more pronounced. Mechanism tests show that government subsidies improve corporate innovation performance by enhancing technological integration capability, easing financing constraints, and increasing innovation input capacity. This paper provides new evidence on the factors influencing green innovation performance in new energy enterprises, offering significant insights into how government subsidies enhance green innovation performance in the new energy sector.

How does digitalization affect the green transformation of enterprises registered in China's resource-based cities? Further analysis on the mechanism and heterogeneity

Digitalization, as a crucial engine for promoting sustainable development, has created new prospects for enterprise green transformation. Utilizing panel data from enterprises registered in China's resource-based cities from 2010 to 2021, this study innovatively examines the role of digitalization in promoting green transformation across two key performance dimensions. The findings indicate that enterprise digitalization significantly enhances the green innovation performance, while its impact on environmental performance, although positive, is not statistically significant. Overall, enterprise digitalization greatly facilitates green transformation. Moreover, mechanism analysis reveals that enterprise digitalization promotes green transformation through the alleviation of financial mismatch and the increase of external market attention. In addition, heterogeneity analysis shows that the effectiveness of enterprise digitalization in promoting green transformation is significantly different in different opportunist risk scenarios, proving more effective in areas with low-marketization, high-competition industries, and high environmental regulation intensity. In terms of the policy level, the National Big Data Comprehensive Pilot Zone (NBDCPZ) and the Carbon Emission Trading Policy (CETP) played a positive stimulating role in the process of enterprise digitalization affecting green transformation. This paper broadens the scope of research on green transformation, offers new development philosophy for enterprises in resource-based cities, and provides new directions for the synergistic development of digitalization and greenization.

Can Resource Dependency and Corporate Social Responsibility Drive Green Innovation Performance?

Can Resource Dependency and Corporate Social Responsibility Drive Green Innovation Performance?

Does digital-industrial technology integration reduce corporate carbon emissions?

The integration of digital technology and industrial technology emerges as a pivotal avenue for enterprises to attain Sustainable Development Goals (SDGs), promoting the transition towards a sustainable and green trajectory of development. The panel data utilized in this paper encompasses financial, operational, and carbon emission metrics of publicly listed companies in China from 2008 to 2019. This longitudinal dataset enables us to perform robust statistical analyses to evaluate the impacts of Digital-Industrial technology integration on carbon emission intensity over time. The results indicate that: (i) Digital-Industrial technology integration significantly reduces the carbon emission intensity of enterprises, the conclusion remains robust when subjected to endogeneity and sensitivity analyses. (ii) Digital-Industrial technology integration mainly reduces the marginal cost of production and enhances the accumulation of knowledge to reduce the carbon emission intensity of enterprises. (iii) Digital-Industrial Technology Integration manifests more pronounced effects in curbing carbon emissions in regions characterized by robust property rights protection and well-developed digital infrastructure. (iv) Further research finds that Digital-Industrial technology integration increases the green technology innovation and ESG (Environmental, Social, and Governance) performance of enterprises. The results of this study provide empirical evidence for the carbon emission reduction function of the Digital-Industrial technology integration, and also verify the positive externality impact of the Digital-Industrial technology integration on the enterprise green innovation and SDGs.

Green innovation and financial performance. The role of R&D investments and ESG disclosure

AbstractThis study investigates the effects of green innovation (GI) on financial performance under both accounting and market‐based perspectives in European Union (EU) listed non‐financial firms. In addition, this study explores whether the R&D investments and the Environmental, Social and Governance (ESG) disclosure play a mediating role over the association between GI and accounting‐based and market‐based financial performance, respectively. Based on a sample of 526 firms over the period 2012–2022, we find that GI is negatively associated with accounting‐based financial performance and positively associated with market‐based financial performance. We further find that GI impacts on accounting‐based financial performance via the channel of R&D investments and on market‐based financial performance via the channel of ESG disclosure. This study provides useful contributions to prior research by encouraging the adoption of an integrated perspective when evaluating potential effects of GI. This study can also assist managers in better preparing for the challenges of implementing GI by leveraging the ESG disclosure. It also advices to investors to carefully assess the more complex impact of GI on financial performance of the firm within their capital allocation decision‐making process. In the same vein, it offers some insights to policy makers interested in facilitating the transition to a sustainable economy.

Digital capability and green innovation: The perspective of green supply chain collaboration and top management's environmental awareness

The emergence of the digital economy has accelerated digital transformation, and digitalization has shown new potential and solutions to increasingly severe environmental challenges. Based on the resource-based view, dynamic capability view, synergy effect and upper echelons theory, the connotation and measurement dimensions of digital capability and green supply chain collaboration are defined and improved. Then, a theoretical model of “digital capability-green supply chain collaboration-green innovation performance” is constructed. The influence mechanism and transmission process of digital capability on green innovation performance from the perspective of green supply chain collaboration is discussed. Meanwhile, the boundary condition of the influence of digital capability on green innovation performance in the view of top management's environmental awareness is explored. Finally, an empirical test is conducted based on the Chinese manufacturing corporates. The results indicate that green innovation performance is significantly and favorably impacted by digital capability, green supply chain collaboration plays a partial mediating role between digital capability and green innovation performance, and top management's environmental awareness can positively moderate the effect of digital capability on green innovation performance. This study offers valuable theoretical and practical enlightenments for manufacturing companies to foster the growth of green innovation through digital capability more effectively.

Green Innovation and Firm Performance: The Role of Environmental Management Practices

The relationship between environmental management practices (EMPs), green innovation, and company performance is investigated in this study. Although prior studies have demonstrated the beneficial effects of implementing green management practices on financial performance, the objective of this study is to offer more comprehensive insights by integrating empirical measurements of green innovations. The study looks into how green innovations affect the connection between business performance and EMPs. EMPs are crucial policies that businesses implement to protect the environment and abide by environmental laws. According to the study, financial performance and environmental performance can reinforce one another when investments are made in green innovations. The study adds to the body of knowledge already available on the connection between business environmental sustainability and financial performance by expanding on earlier empirical claims. Keywords: Green innovation, environmental management practices, firm performance, financial performance, environmental performance, green products, technology.

Exploring Firms’ Green Innovation and Green Performance: A Systematic Review and Conceptual Framework

Exploring Firms’ Green Innovation and Green Performance: A Systematic Review and Conceptual Framework

PENGARUH GREEN INNOVATION DAN KINERJA KEUANGAN TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN SUB SEKTOR MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2017-2021

This study aims to examine and analyze the effect of Green Innovation and Financial Performance on firm value proxied by Tobin's Q and Price to Book Value. This study uses a multiple linear regression equation model which is processed with Eviews software version 12. The sample for this research is food and beverage sub-sector companies listed on the Indonesian Stock Exchange for the period 2017 – 2021 using a purposive sampling technique. The results showed that Green Innovation has a negative effect on Tobin's Q and Price to Book Value, Return On Assets has a positive effect on Tobin's Q and Price to Book Value, Earnings Per Share has no effect on Tobin's Q and Price to Book Value, and Debt To Equity Ratio has no effect on Tobin's Q, but has a positive effect on Price to Book Value. These results provide an indication that companies in the food and beverage sub-sector in Indonesia that carry out green innovation consider that the disclosure and implementation of this innovation does not result in the company getting rewards from investors in the form of an increase in share prices and financial performance remains a factor that cannot be separated from investors' assessment of firm value.

The Effect of Green Innovation on Corporate Financial Performance: A Literature Review

Heightening environmental challenges, increasing environmental awareness, and continuous refinement of environmental regulations have prompted corporations to increasingly focus on the development of green innovation in recent years. However, previous research has not reached a conclusive understanding of how green innovation affects corporate financial performance. In this case, this study seeks to categorize and summarize research conducted over the past five years on the relationship between green innovation and corporate financial performance, aiming to illustrate the reasons behind varied research conclusions.

Digital transformation and green innovation: firm-level evidence from China

The technological source of green innovation has been a persistent theme in environmental economics. In more recent years, digital technology has triggered a new round of social changes and is viewed as the emerging growth engine, leading to significant improvements in productivity and innovation. However, whether digital technology can promote green innovation remains an unknown issue. This study elucidates the causal relationship between digital transformation and green enterprise innovation for Chinese companies during 2009–2019. The findings indicate that digital transformation positively affects the quantity and quality of green innovation performance. Each standard deviation increase in the degree of digital transformation increases the quantity and quality of green enterprise innovation by 2.924% and 2.124%, respectively. Additionally, digital transformation drives green innovation by alleviating financing constraints and information asymmetries and improving human capital. This effect is more pronounced among enterprises in regions with high levels of environmental investment, clean industries, and stringent environmental regulations. By highlighting the linkage between firm-level digital transformation and green innovation, this study contributes to our understanding of the positive environmental externality associated with the diffusion of digital technology and offers valuable insights for the sustainable development of emerging economies.

Assessing the role of organizational strategic factors in stimulating green innovation performance: moderating effects of green absorptive capacity

PurposeThis study investigates the interaction between organizational strategic factors (Leadership and management support [LMS] and green learning orientation [GLO]) and green innovation performance (GIP), through the lens of resource-based view (RBV) theory. It examines both the direct and indirect impacts of these factors on GIP via green knowledge management (GKM), and explores how green absorptive capacity (GAC) enhances these relationships.Design/methodology/approachUsing Partial least squares structural equation modeling (PLS-SEM) and moderated mediation analysis, we analyzed responses from 419 individuals across 154 manufacturing firms in Pakistan to understand these dynamics.FindingsResults show that LMS and GLO significantly affect GIP, both directly and indirectly, through GKM. Furthermore, GAC intensifies the impact of GLO on GKM and the influence of GKM on GIP, indicating a moderated mediation effect.Practical implicationsHighlighting the importance of LMS, GLO, GKM, and GAC, the study suggests that focusing on these areas can help firms align their strategies with sustainability goals, enhancing their GIP. These insights can guide policymakers in creating supportive strategies for businesses to improve their GAC, facilitating better knowledge adoption and application.Originality/valueThe research contributes to the RBV theory by clarifying the role of strategic organizational factors in enhancing GIP within manufacturing firms, offering a clearer path to achieving sustainability goals.

Do green dynamic capabilities and absorptive capacity affect green innovation performance? A study on companies in Indonesia

Purpose: This study aims to empirically analyze the effect of absorptive capacity, green dynamic capability, and green manufacturing practices (GMP) on green innovation performance (GIP).Design/methodology/approach: A quantitative approach was employed in this study, with data collected through a questionnaire and analyzed for hypothesis using the partial least squares structural equation model. In order to enhance the depth of the analysis, in-depth interviews were conducted with experienced practitioners from three selected companies implementing green innovations.Findings: Empirical findings showed that reconfiguring capabilities positively affects GIP. Realized absorptive capacity positively affects GMP but does not affect GIP. Then, realized absorptive capacity positively impacts sensing and reconfiguration capabilities. GMP mediates the relationship between realized absorptive capacity and GIP. This study reveals the two pathways through which green dynamic capabilities affect realized absorptive capacity and GIP.Research limitations/implications: This study has yet to consider potential variations in company ownership, applied technology, and industry type that could lead to differences in green innovation characteristics. This study employed a small sample size and a Likert-scale questionnaire, possibly leading to respondent perception bias (although this is unlikely).Practical implications: The results of this study offered valuable insights into how companies developed dynamic capabilities to address essential green requirements in their product and processes. Thus, companies can prepare all available resources to adapt to various environment-related changes.Social implications: Companies with high green innovation performance will produce environmentally friendly products, conduct industrial activities without damaging the environment, and ultimately create a sustainable industry.Originality/value: What distinguishes this study is the division of green dynamic capabilities into three independent capabilities: SenCap, SeiCap, and Reconf, which had been described as a single capacity in previous studies. Furthermore, this study emphasizes GMP's position between absorptive capacity and green dynamic capability with GIP.