Green Product Innovation Performance Research Articles

Green process innovation, green product innovation, leverage, and corporate financial performance; evidence from system GMM

Natural resource usage has produced various environmental challenges. Green process innovation has been considered a viable option that can help both industry and society. This study investigates the impact of green process innovation and green product innovation on corporate financial performance. We based our findings on a sample of 280 listed non-financial firms operating in South Asia. Information was gathered from firms' annual and CSR reports from 2012 to 2022. This study's data was analyzed using a two-step dynamic panel system GMM, correlation analysis, multicollinearity diagnostic tests, and descriptive statistics. Corporate financial performance is measured with ROA, ROE and Tobin's Q. Overall findings of the study show that green innovation has a significant positive impact on all measures of financial performance. Investing in the innovation of green products and green process can assist businesses in avoiding environmental concerns and regulatory penalties, while also assisting them in establishing new market prospects and achieving new levels of success with their green products. In addition, developing products that are friendly to the environment is tightly connected to expanding green competencies, promoting a company's green image, and improving the company's financial performance. Particularly useful for policymakers in developing countries, the study's findings can be used to introduce paradigm-shifting legislation and penalties that speed up business adoption of green process innovation.

Linking Green Innovation to Firm Success: Cost Leadership’s Mediating Role in Vietnam

ABSTRACT Purpose Although most previous studies proposed a positive relationship between green innovation and firm performance, the mechanisms of different types of competitive advantages in the above relationship have not been examined. The aim of the study is to examine the relationship between green innovation and firm performance with the participation of cost leadership competitive advantage as the role of a mediator. Methodology/Approach The study used structural equation model employing partial least squares method (PLS-SEM) to examine the hypotheses. Data was collected using a questionnaire via a survey. Results based on information provided by 121 middle and senior managers of firms that engage in manufacturing in Vietnam were analyzed using SmartPLS 3 software. Findings The results indicate that both dimensions of green innovation including green product innovation and green process innovation improve performance of manufacturers in Vietnam. Further, cost leadership competitive advantage fully mediates the relationship between green process innovation and firm performance but does not act as a mediator in the relationship between green product innovation and firm performance. Research Implications The study’s findings confirm the positive influence of green innovation on firm performance. Moreover, the study emphasizes the diversity of competitive advantages in the role of mediating the relationship between green innovation and firm performance. Practical Implications The study supports the importance of green innovation in enhancing performance. Also, the findings help manufacturers in selecting which type of green innovation suits best with low-cost strategies and serves as value-creating tools. Specifically, manufacturers can prevent costly pollution and improve productivity, achieve economies of scale, thus attaining increased cost efficiency through green process innovation. Originality/Value/Contribution of the paper The study first distinguished types of competitive advantages, then focused on and attempted to address the value-capturing mechanism in which green innovation serves as a means of value creation via cost leadership competitive advantage. The study provides a plausible explanation for the contradictory findings of previous studies on the relationship between green innovation and firm performance. Moreover, in an effort to examine the relationships between environmental activities and their consequences in emerging markets where related researches are scarce, this research was operated in Vietnam, an emerging country that is a manufacturing hub.

Efek Moderasi Kepedulian Lingkungan Manajerial Pada Pengaruh Inovasi Produk Hijau Dan Proses Inovasi Hijau Terhadap Kinerja Berkelanjutan Ukm Sektor Makanan Dan Minuman Di Kabupaten Banjarnegara

This study aims to examine the effect of green product innovation on sustainable performance, the effect of green innovation processes on sustainable performance, and the moderating effect of managerial environmental concern on the relationship between product innovation and green innovation processes and sustainable performance. The valid responses received through a structured questionnaire were from 110 SMEs in the food and beverage sector in Banjarnegara district. MRA analysis was used to validate the hypothesis from the literature review. The results of this study indicate that individual green product innovation variables have a significant influence on sustainable performance variables. Green innovation process variables individually have a significant influence on sustainable performance variables. The managerial environmental concern variable is unable to moderate the relationship between green product innovation and the relationship between green product innovation and sustainable performance. The managerial environmental concern variable positively and significantly moderates the relationship between the green innovation process and sustainable performance.
 Keywords: Green product innovation, Green innovation process, Managerial environmental concern, Sustainable performance

From Covid-19 to conflict: Does environmental regulation and green innovation improve industrial sector decarbonization efforts and environmental management?

During the COVID-19 period, industrial production was slowed or halted due to COVID restrictions and lockdowns, followed by global tensions and conflicts, which created uncertainties for industrial production. Similarly, during this period, the growth in carbon emissions was seen shrinking. However, it is greatly important to explore whether this shrinking trend will continue or whether a new growth pattern could emerge. Considering this, the research was carried out to investigate the relationship between green innovation initiatives and environmental regulations in the process of environmental management and environmental performance in the industrial sector. To do so, the survey-based research methodology using PLS-SEM was adopted, and data was gathered from 279 managers working in the equipment manufacturing industry. Our empirical findings revealed that environmental regulation and green innovation efforts strengthen decarbonization efforts, which further improve environmental management and environmental performance. The mediating role of decarbonization efforts was found to be prominent among green process innovation, environmental management and environmental performance. Moreover, decarbonization serves as a mediator between green product innovation and environmental management. In contrast, we could not verify that decarbonization mediates the relationship between green product innovation and environmental performance. The key findings are greatly important and provide a fresh roadmap for environmental management in the post-COVID era.

How environmental leadership shapes green innovation performance: A resource-based view

Considering rapid climate change and its effects, an increasing number of enterprises are paying more attention to environmental protection behavior in order to realize their green innovation activities. However, environmental leadership is critical for delivering green innovation in business and industry. As such, can environmental leadership promote the green innovation performance of enterprises? If so, what is the influence mechanism? In the previous research on environmental leadership, the impact of environmental leadership on the green innovation performance of enterprises had not yet been effectively explored. Therefore, drawing on a resource-based view, this study explored the mechanism through which environmental leadership influences a firm's green innovation performance. In this study, with the help of the mature scale at home and abroad, variables were measured, and the relationship between variables was verified by multiple regression analysis using samples collected from 224 heavy-polluting enterprises in western China at multiple time points. It was found that (1) environmental leadership has significant positive effects on green product innovation performance and green process innovation performance; (2) proactive environmental strategies partly mediate the relationships between environmental leadership and green product, as well as green process innovation performance; and (3) a firm's organizational structure positively moderates the relationship between environmental leadership and proactive environmental strategies. Therefore, the results of our study provide theoretical and practical contributions for research on environmental leadership and proactive environmental strategies.

Green creativity, responsible innovation, and product innovation performance: A study of entrepreneurial firms in an emerging economy

AbstractIn this article, we investigate the effect of green creativity on product innovation performance through the mediating mechanism of responsible innovation. Further, we explore the moderating impact of resource commitment on the relationship between green creativity and responsible innovation. Utilizing a sample of 273 entrepreneurial firms in Vietnam, we find that green creativity positively influences responsible innovation. In addition, the results demonstrate that the effect of green creativity on responsible innovation is moderated by a firm's level of resource commitment to environmental innovation, such that the effect is more pronounced when a firm commits more resources to environmental innovation. Finally, we find the effect of green creativity on product innovation performance is mediated by responsible innovation. The theoretical as well as practical implications of the findings are discussed.

THE IMPACT OF ENVIRONMENTAL INNOVATION & ENVIRONMENTAL MANAGEMENT ON GREEN PRODUCT INNOVATION PERFORMANCE IN THE MANUFACTURING INDUSTRY OF PAKISTAN WITH THE HELP OF MEDIATING ROLE OF GREEN CREATIVITY CLIMATE

The purpose of this paper, exploring the impact of success factors of EIP dimensions (i.e. Environmental Management, Creativity Climate, Green Creativity, Green Product Innovation Performance) & their impact on the organizational performance of Manufacturers in Pakistan on various leveled execution (i.e. environmental performance, economic performance, & operational performance, whereas EIP practices in developing countries like Pakistan needs to explore. The Data of this research were collected from the managers of 185 business firms in Pakistan through survey questionnaires with a purposive sampling technique. The target population consisted of managerial employees (business experts & executives) from private business firms & it was subjected to PLS-SEM for analysis. Our findings show that Manufacturing organizations can find consumers with low-quality environmental requirements having a low motivation to buy products. The most important element of an organization that promotes the establishment of a green factory product, contributes to the organizational innovation theory.

A nonlinear relationship between corporate environmental performance and economic performance of green technology innovation: Moderating effect of government market‐based regulations

AbstractGreen technology innovation corporates can effectively coordinate the relationship between the environment and the economy, which has been an area of interest among academia and governments. To stimulate the sustainable green technology innovation of corporates, it is necessary to clarify the internal correlation among green technology innovation, environmental performance, and economic performance. Based on the information of 642 industrial corporates obtained from a field investigation in China, this article systematically examines the relationships between corporate green technology innovation and environmental performance, economic performance, and the moderating effect of different governmental market‐based regulations on these relationships. The results show the following. (1) Green technology innovation can significantly improve corporate environmental performance and economic performance. (2) Corporate environmental performance can be transformed into economic performance, and an improvement in environmental performance leads to an increase in the economic performance produced by unit environmental performance, which shows a nonlinear relationship. (3) Government supply‐based market regulation negatively moderates the relationship between end‐of‐pipe technology innovation and environmental performance while positively moderating the relationship between green process innovation and environmental performance and the relationship between green product innovation and economic performance; government demand‐based market regulation positively moderates the relationship between green process innovation and environmental performance and the relationship between green process innovation and economic performance; government competitive‐based market regulation only has a positive effect on the relationship between green product innovation and economic performance. (4) Government market‐based regulations can positively promote the transformation from environmental performance to economic performance. The stronger the market‐based regulations, the greater the economic performance that corporate environmental performance can bring.

Enhancing firms’ green innovation and sustainable performance through the mediating role of green product innovation and moderating role of employees’ green behavior

In today’s competitive world, the growing role of firms’ green innovation (GI) has caused organisations to respond to the demand for sustainable performance. Significantly, increasing environmental awareness has inevitably popularised GI approaches to maximise firms’ sustainable goals. GI receiving international significance has become the prime driver accelerating firms’ socio-ecological practices. Using the theoretical lens of resource-based theory, the study explores the impact of green process innovation, GI strategy and green action innovation on sustainable performance under the mediating role of green product innovation and moderating role of employee green behaviour. The data was collected from the 411 employees working in the Pakistani manufacturing sector. Structural equation modelling (SEM) and Partial Least Squares (PLS) regression were used for the proposed hypothesis testing. The employees’ green initiatives ensure the organisation’s sustainable performance through eco-friendly products. Employee green behaviour moderates between green product innovation and sustainable performance.

The virtuous circle between green product innovation and performance: The role of financial constraint and corporate brand

Although the nexus between green product innovation (GPI) and firm performance has been studied, the impact of GPI on firm performance remains little understood and findings have been mixed. These mixed results of prior studies are attributable to failures to incorporate the intervening mechanism in studying the nexus between GPI and firm performance and to examine the impact of closely interlinked pertinent internal boundary conditions. This study attempts to overcome these shortcomings and contributes to the relevant literature in three significant ways. First, the findings indicate that GPI impacts a firm’s financial constraint, which affects its current and anticipated performance. Second, the relationship between GPI and financial constraint is moderated by a firm’s corporate brand equity. Third, GPI is both a predictor and a consequence of financial performance, indicating that the relationship between the two constitutes a virtuous circle. The results are robust to alternative measures of the performance variable and the alternative model estimation method.

Green core competence and firm performance in a post‐conflict country, Iraq

AbstractGreen core competence theory proposes that green core competence is needed for green innovation performance and, in turn, firm performance. We demonstrate that this theory applies in post‐conflict Iraq where green innovation performance was conditional on commitment to sustainable management and development of green technology and skills. Data from 238 Iraqi executives showed that green product and process innovation performance increased with green core competence, but only when the firm invested in people and R&D or, in the case of green process innovation, top management demonstrated authentic commitment to sustainable practices. The moderation effects of R&D investment and top management commitment reflect the national context in Iraq, where R&D investment is low and management is often constrained by inflexible bureaucracy. As countries emerge from conflict, investment in modernization of companies' internal structure, management, and capacity for continuous improvement is required if core competence is to be translated into innovation performance.

Does Proactive Green Technology Innovation Improve Financial Performance? Evidence from Listed Companies with Semiconductor Concepts Stock in China

Academia and business alike are paying increasing attention to innovation in green technology due to the potential environmental and financial performance benefits. However, a limited amount of research has been carried out on the effect of proactive green technology innovation on corporate financial performance. This study examines the effects of two dimensions of proactive green technology innovation, namely, proactive green process innovation and proactive green product innovation, on corporate financial performance. Moreover, the moderating role of absorptive capacity on these relationships is introduced. The proposed hypotheses were tested empirically using a dynamic panel dataset of 126 Chinese listed semiconductor concept stocks from 2010 to 2020 and a difference-GMM approach. It was found that proactive green process innovation has a significant positive effect on both short-term and long-term corporate financial performance. Moreover, proactive green product innovation has a significant positive effect on long-term corporate financial performance. However, it does not improve short-term corporate financial performance. In addition, absorptive capacity has a positive moderating effect on the relationship between proactive green process innovation and both short-term and long-term corporate financial performance, and shows a positive moderating effect on the relationship between proactive green product innovation and long-term financial performance. However, it has a significant negative moderating effect on short-term corporate financial performance. Thus, we suggest that firms adopt more supportive proactive green technology innovation practices in order to improve their financial performance.

What Myths about Green Technology Innovation and Financial Performance’s Relationship? A Bibliometric Analysis Review

The relationship between green technology innovation and corporate financial performance has gained considerable traction in academics and businesses. However, there is limited overall bibliometric analysis on this topic. To meet the research need, this study, using Citespace (Citespace5.8r3 version, ChaomMei Chen, Philadelphia), performed the bibliometric analysis of the relationship between green technology innovation and corporate financial performance from 2007 to 2021, with 251 academic papers published in the Web of Science databases being analyzed, thus identifying the research hotspots and trends. The results showed that: (i) the number of publications has moved from slow to rapid growth and is expected to ramp up further; (ii) only a small collaboration network has been formed among the authors; (iii) institutions’ work operates relatively independently. There is still more room for inter-institutional or cross-discipline cooperation against geographical regions. However, there is a strong network of cooperation among countries. China performs best in this research area, followed by Spain and the UK; (iv) several significant co-citation relationships are also formed in the literature network. The burst literature on green innovation, product innovation, and financial performance is considered a research hotspot; and (v) “green innovation”, “corporate performance”, “legitimacy”, “environmental disclosure”, and “corporate sustainability” have become trends in research. Our results provide academics and practitioners with a robust roadmap on the relationship between green technology innovation and corporate financial performance.

Institutional Pressure and Green Product Success: The Role of Green Transformational Leadership, Green Innovation, and Green Brand Image.

Rapid economic growth has led to economic activities which have caused extensive environmental damage to the planet. Companies have sought to adapt their business methods to reduce their carbon footprint in order to meet regulations, satisfy consumer preferences and keep up with changing societal expectations. The relationship between institutional pressure and green product performance will be an important issue in corporate green management. This article looked through the lens of green innovation and explored the moderating role of green brand image between green product innovation and new green product success. Utilising the data of 243 managers in Mainland China, structural equation modelling results found that institutional pressure is positively correlated to green transformational leadership, green transformational leadership is positively correlated to green process innovation, green process innovation is positively correlated to green product innovation, green product innovation is positively correlated with new green product success, green brand image moderates the relationship between green product innovation and new green product performance. The research results provide theoretical and practical implications for enterprises to relieve institutional pressure and build specific green competitive advantages.

Distance with Customers Effects on Green Product Innovation in SMEs: A Way Through Green Value Co-creation

Based on the perspective of multidimensional proximity, this paper examined the relationships between cognitive and social proximities with key customers and green product innovation performance via the mediation of green value co-creation by using data from 211 fine chemical small and medium-sized enterprises in clusters in China. Moderating effects of geographical distance and green project duration were assessed to further explore the relationship. The results revealed that social and cognitive proximities can promote green co-production and enhance green product innovation performance. Moreover, the relationship between social proximity and green co-production is hindered when customers are geographically distant or short duration partners of green projects. Eventually, this study was quite different from previous research by relating proximities to green value co-creation and green innovation performance in the context of small and medium-sized enterprises in emerging markets. The study provides a research framework for related research on green innovation.

Sustainability excellence: the interactions of lean production, internal green practices and green product innovation

PurposeThis study aims to investigate the interactions between lean production, internal green practices, green product innovation and sustainable performance metrics. The study further looks at the mediation effect of internal green practices and green product innovation between lean production and sustainable performance dimensions.Design/methodology/approachThe questionnaire was used to glean data from 209 manufacturing firms. All the hypothesized relationships were processed by using partial least square-structural equation modelling.FindingsThe results suggest that lean production significantly leads to the implementation of internal green practices and the production of quality products with eco-oriented features that meet customers’ needs. Further, while lean production and internal green practices were found to significantly influence sustainability performance, green product innovation significantly influences only financial performance. Besides, the mediation analysis shows that internal green practices mediate the relationship between lean production and sustainable performance dimensions but green product innovation mediates the relationship between lean production and financial performance only.Research limitations/implicationsThe study is limited to firms from Ghana, a developing country; hence, the results cannot be imported to reflect other geographical contexts.Practical implicationsThe results of the study provide sufficient justifications for managers, (especially Ghanaian managers and those from other similar environs) to commit their financial resources towards implementing lean production and internal green practices so as to achieve sustainability excellence.Originality/valueThis study magnifies and provides new insight on lean and green literature by developing a comprehensive research model that concurrently tests the direct and indirect effects between lean production, internal green practices, green product innovation and sustainable performance dimensions.

A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms

The resource-based view (RBV) of the firm has been used to examine the role of resources and capabilities in product innovation and how product innovation is related to overall firm performance. Moreover, the natural RBV (NRBV) has addressed how resources affect the natural environment, whereas the relational RBV has highlighted the importance of relational resources, that is, resources shared with stakeholders outside the focal firm. In order to consider these extensions of the RBV in product innovation, this article applies a relational NRBV (RNRBV) on product innovation. Using data from 305 Swedish small manufacturing firms, structural equation modeling is used to examine the relationships between green product innovation (GPI), differentiation advantage and firm performance, and how these relationships are influenced by a relational resource in terms of green suppliers. The results demonstrate that GPI affects differentiation advantage and that this relationship is strengthened by having green suppliers. The article offers a RNRBV on product innovation and illustrates the importance of incorporating additional dependent variables other than aggregated performance measures when researching GPI. Moreover, the study shows that green suppliers can provide important products and complementary resources in order for the focal firm to fully realize its GPI capability.

Green product competitiveness and green product success. Why and how does mediating affect green innovation performance?

Among the global warming issue and production process using machinery and modern technology, these Batik SMEs still strongly exist. This research aims at empirically proving the influence of green product competitiveness and green product success on green product innovation performance through green product competitiveness and green product success as the mediating variable. This research employs a survey approach and questionnaire to collect information related to the research samples. The quantitative approach in this research is conducted by testing the research hypotheses. 223 respondents consisting of Batik SMEs’ owners/ managers in Yogyakarta, Indonesia are taken as the samples with a purposive sampling method. The hypotheses test results show positive and significant correlation between green product innovation and green product competitiveness and green product success. Green process innovation positively, significantly influences green product competitiveness and green product success. Green product competitiveness positively, significantly influences green innovation performance. Green process success positively, significantly influences green innovation performance.

Environmental innovation practices and green product innovation performance: A perspective from organizational climate

AbstractGreen product innovation is critical to a firm's sustainability. Some studies have explored how to enhance a firm's green production innovation. In this research, we construct and test a research model for exploring the influence of environmental innovation practices (EIP) on green innovation performance, and we investigate the mechanisms underlying this relationship. Based on organizational creativity theory, we propose and test the hypothesis that EIP can affect creativity climate and green creativity, which in turn enhance green product innovation performance. Using survey data from 147 companies in China, we find that EIP directly and positively affect green creativity and indirectly influence green product innovation performance via green creativity. Thus, green creativity partially mediates the link between EIP and green product innovation performance. Our finding also indicates that creativity climate positively affect green creativity. Green product innovation performance is positively affected by creativity climate but not directly affected by EIP. The results further demonstrate that creativity climate fully mediates the link between EIP and green product innovation performance. Our findings suggest that firm' managers should shape the organizational creativity climate and encourage green creativity to enhance their firm's sustainability. Finally, we discuss the theoretical and practical implications, which can promote the firm's sustainability through environmental policy.

Green process innovation, green product innovation, and corporate financial performance: A content analysis method

Green technology innovation has received continuous attention from the business sector in recent years, yet few studies have examined the internal mechanisms and contingent conditions that link green technology innovation to a firm's financial performance. Using data from 209 listed companies that belong to heavily polluting manufacturing industries, collected via the content analysis method, we find that green process innovation has a positive impact on green product innovation, and that both green process innovation and green product innovation can improve a firm's financial performance. We also find that green product innovation mediates the relationship between green process innovation and a firm's financial performance, and that a firm's green image moderates the relationship between green product innovation and financial performance. However, our study shows that the moderating effect of green subsidies on the relationship between green product innovation and a firm's financial performance is not supported. Based on these findings, we provide several recommendations for managers and government entities to effectively implement green technology innovation.