A contextual model for assessing the nexus between green innovation practices and enterprise performance
Abstract
The pursuit of green innovation and sustainable practices is increasingly growing currently because of the alarming environmental concerns and the coexistence of economic expansions. But the strategies employed by companies in exploring green innovation activities have gained little or no attention in literature. This study proposes a conceptual model that outlines green innovation strategies, corporate performance, and the moderating effect of green dynamic capacity. Based on the perspective of the Resource Based viewpoint and the notion of dynamic capabilities, this study addresses a) what is the relationship between green innovation practices and enterprise performance? and b) to what extent do green dynamic capabilities moderate the connection between green innovation practices and enterprise performance? We used a cross-sectional data from SMEs in Ghanaian manufacturing firms, analysed utilizing the advanced PLS-SEM systematic procedures. Our findings revealed a significant relationship between green product innovation, green process innovation, and green service innovation on financial performance and that green dynamic capacity moderate these relationships. Our research contributes to expanding the knowledge of green innovative practices among SMEs in the manufacturing sector. These findings have both theoretical and practical implications, opening numerous options for further research.
Keyword : green product innovation, green process innovation, green service innovation, green dynamic capacity, small and medium-sized enterprises, enterprise performance
How to Cite
Takyi, K. N., Gavurova, B., & Asamoah, C. A. (2024). A contextual model for assessing the nexus between green innovation practices and enterprise performance. Journal of Business Economics and Management, 25(6), 1238–1259. https://doi.org/10.3846/jbem.2024.22750
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Chen, Y. S., Lin, Y. H., Lin, C. Y., & Chang, C. W. (2015). Enhancing green absorptive capacity, green dynamic capacities and green service innovation to improve firm performance: An analysis of Structural Equation Modeling (SEM). Sustainability, 7(11), 15674–15692. https://doi.org/10.3390/su71115674
Chen, J. S., & Tsou, H. T. (2007). Information technology adoption for service innovation practices and competitive advantage: The case of financial firms. Information Research, 12(3).
Dwiputri, R. M., Suyono, E., & Laksana, R. D. (2023). Intellectual capital, green innovation, and financial performance: The mediating role of sustainability. International Journal of Management and Sustainability, 12(3), 448–462. https://doi.org/10.18488/11.v12i3.3477
Fareed, Z., & Pata, U. K. (2022). Renewable, non-renewable energy consumption and income in top ten renewable energy-consuming countries: Advanced Fourier based panel data approaches. Renewable Energy, 194, 805–821. https://doi.org/10.1016/j.renene.2022.05.156
Faul, F., Erdfelder, E., Buchner, A., & Lang, A. G. (2009). Statistical power analyses using G* Power 3.1: Tests for correlation and regression analyses. Behavior Research Methods, 41(4), 1149–1160. https://doi.org/10.3758/BRM.41.4.1149
Frondel, M., Horbach, J., & Rennings, K. (2007). End-of-pipe or cleaner production? An empirical comparison of environmental innovation decisions across OECD countries. Business Strategy and the Environment, 16(8), 571–584. https://doi.org/10.1002/bse.496
Ha, N. M., Nguyen, P. A., Luan, N. V., & Tam, N. M. (2024). Impact of green innovation on environmental performance and financial performance. Environment, Development and Sustainability, 26(7), 17083–17104. https://doi.org/10.1007/s10668-023-03328-4
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