Green innovation in the automobile industry

This study utilizes structural equation modeling (SEM) to explore the positive effect of corporate environmental ethics on competitive advantage in the Taiwanese manufacturing industry via the mediator: green innovation performance. This study divides green innovation into green product innovation and green process innovation. The empirical results show that corporate environmental ethics positively affects green product innovation and green process innovation. In addition, this study verifies that green product innovation mediates the positive relationship between corporate environmental ethics and competitive advantage, but green process innovation does not. Therefore, corporate environmental ethics can not only affect competitive advantage directly, but also influence it indirectly via green product innovation in the Taiwanese manufacturing industry. Taiwanese manufacturing companies can increase their corporate environmental ethics and green product innovation to enhance their competitive advantages.

In recent years, growing attention among consumers, government and community towards environmental health has given importance to green innovation among industrial sector in developing economies. However, little research has been devoted to the consideration of the relation among innovation drivers, green innovation and business performance in manufacturing micro, small and medium enterprises (MSME). This study aims to provide empirical evidences of green innovation to motivate manufacturing MSMEs toward environmentally responsible activities. The research findings strongly validate the influence of innovation drivers and green innovation with 61% variance explained for firm's business performance. Furthermore, it has been found that green process and green organisational innovation have significant impact on business performance as compared to green product innovation. These research findings will provide a strong platform for designing strategic plans and spur adoption of green innovation in MSMEs of developing economies.

Purpose The research aims to investigate the mediating role of firm performance (FP) in improving green innovation on firm sustainability performance, using evidence from an emerging country. Indonesia is a member of the Paris Agreement and one of the largest contributors to global gas emissions; hence, sustainability is a significant issue. Design/methodology/approach This study is based on a simple mediation model 4 by Hayes Process Macro regression-based approach using R. This study employs non-banking and finance sector data of 518 companies listed on the Indonesia Stock Exchange from 2017 to 2021. Findings The research found that green innovation significantly and positively impacts FP, as demonstrated by a mediation test with a 95% bootstrapping confidence interval based on 5,000 bootstrapping samples. The relationship between FP and firm sustainability performance is also positive and significant. However, the effect of green innovation on firm sustainability performance is insignificant. Therefore, our main finding revealed that FP plays an important and positive role in mediating the effect of green innovation practices on sustainability performance, which is known as full mediation. Research limitations/implications This study is limited to using only a single Indonesian as a representative of emerging countries. Further research could potentially apply to multiple countries or provide a comparative study across countries, thereby accelerating emerging countries’ commitments to the sustainability agenda. Other factors might apply to sustainability-related studies. Practical implications This study provides valuable insights to the government, enabling them to implement incentives, policies or campaigns aimed at promoting the use of online media to enhance industry disclosure on sustainability and green innovation practices worldwide. Additionally, it highlights that financial practices are not limited to publicly listed companies but extend to non-public listed companies. Social implications This research aims to raise industry awareness of firms’ sustainability practices, enhancing their reputation. Originality/value This study addresses a gap in the literature by exploring the mediation role of FP in the effect of green innovation practices on firm sustainability performance from the perspective of media agenda setting theory.

In this study the complex relationships between sustainability practices and green innovation in Indian manufacturing firms, focusing on quality management, green process innovation, and green product innovation are examined. The aim of the study was to investigate the impact of green technological advancements and quality management on the financial performance and investor-perceived value of manufacturing firms. The green process and green product innovations implication on financial performance and investor perception was also explored. With the help of Pearson correlation and regression analyses, the study assessed the impact of quality management and green innovations on financial performance and investor perception. The findings revealed a significant positive correlation between green product innovation and investor perception, endorsing environmentally responsible companies to attract higher investments and improve financial prospects. However, no significant positive correlation was found between green process innovation and financial performance, which may be influenced by upfront costs and delayed benefits. Green process innovation moderates the relationship between quality management and investor perception, while green product innovation mediates the relationship between green process innovation and investor perception. These insights highlight the importance of prioritising green product innovation to enhance investor perception and integrate environmental considerations into quality management. The study's results align with Sustainable Development Goal 9, promoting sustainable industrialisation, innovation, and infrastructure in the Indian manufacturing industry, fostering a more resilient and environmentally responsible sector.

Green transition in the hospitality industry: The influence of market forces and customer dynamics on sustainable performance in the digital era

Green 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.

PurposeGreen innovation and sustainability are two contemporary initiatives that are gaining more and more attention from researchers, academics and industry professionals as they are considered important business strategies to improve environmental conditions and obtain better organizational performance. Besides, the growth of uncontrolled economic activities leads to an imbalance of economic, social and environmental values in different sectors. However, little is known about the mediating role that economic, social and environmental sustainability has in the relationship between green innovation and firm performance. Previous literature has focused on developed economies, but not on a developing economy such as that of Mexico. Therefore, this research aims to fill this existing gap by exploring the mediating effects of sustainability in the relationship between green innovation and firm performance.Design/methodology/approachA theoretical research model that theorizes, through ten hypotheses, the antecedents and consequences of the mediating effect of economic, social and environmental sustainability and the occurrence between green innovation and firm performance is proposed. The model is tested through PLS-SEM using data that were collected using a questionnaire survey that was distributed among companies in the automotive industry in Mexico. In total, a sample of 460 responses was obtained.FindingsThe results suggest that green innovation has significant positive effects on economic and environmental sustainability, as well as on firm performance, but not on social sustainability. The results also indicate that the relationship between green innovation and firm performance improves considerably with the mediation of economic, social and environmental sustainability.Research limitations/implicationsDespite the present study focused on an industrial sector that is commonly at the forefront of technological development, it was limited to a specific region of Mexico. Thus, its results must be taken with caution as more extensive results including other regions and nations will be required to further validate the results obtained from the present study.Practical implicationsThe findings of this study have important implications for both policymakers and managers of manufacturing firms in the automotive industry as they can be used as a basis to formulate better strategies and policies to enhance the capabilities of companies to develop innovations that could reduce environmental risks and other consequences of climate change.Originality/valueThe present study adds to the innovation and sustainability body of knowledge by analyzing and discussing the mediating role of sustainability in the relationship between green innovation and firm performance. It also generates new knowledge about the mediating effect that sustainability has on the relationship between green innovation and firm performance, particularly in the context of a developing economy such as that of Mexico.

The research aims to provide empirical evidence on the relationship of ESG and green innovation to company's business performance. The independent sample of this research is ESG was measuring ESG score. Dependent variables green innovation were measures using innovation of green product and innovation of green process. Sampling used in this research is purposive sampling technique. The sample of this research consisted of 66 manufacturing companies from 2016 to 2021. The data collected was analyzed using panel data regression analysis. This result shows that ESG positively influence business performance proxied by Tobin's Q and ROA unsupported. Green Innovation, which is proxied by green product innovation on the company's business performance, shows mixed results. Where green product innovation positively influence the company's business performance proxied by ROA. Conversely, green product innovation does not influence company's business performance proxied by Tobin's Q. Meanwhile, Green Innovation proxied by Green Process innovation effect on the company's business performance is not supported. Thus, it can be seen that ESG has not become a concern for investors in Indonesia, as evidenced by the limited number of public companies that disclose ESG scores. Green Innovation which is proxied by green product innovation and green process innovation shows mixed results which shows that customers are also considering purchasing products from companies whose innovations produce environmentally friendly products

Organizational buyer involvement in green innovation is crucial for firms' sustainable development. However, the outcomes of such involvement remain unclear because of the mixed findings in existing studies, which call for further investigations into the underlying mechanisms and boundary conditions that shape the relationship between organizational buyer involvement and green innovation performance. This study aims to fill this gap by examining if, how, and when firms can benefit from organizational buyer involvement in green innovation. The findings indicate an inverted U‐shaped relationship between them. Additionally, organizational buyer involvement also has an inverted U‐shaped relationship with the supplier's knowledge integration capacity, which positively impacts green product innovation performance. Moreover, specific investments positively moderate the nonlinear relationship between organizational buyer involvement and knowledge integration. As such, this study adds to our understanding of the effects of organizational buyer involvement on firms' green product innovation performance, shedding new insights into green innovation and B2B collaboration literature.

Analyzing the relationship between green innovation and environmental performance in large manufacturing firms

How do corporate social responsibility and green innovation transform corporate green strategy into sustainable firm performance?

This study examines the impact of green process innovation (GPI), green entrepreneurial orientation (GPO), and proactive sustainable strategy (PSS) on environmental performance (EP). Data were collected from 294 Indian agriculture technology firms. Structural equation modeling (SEM) was used to analyze the data using Lisrel 8.80. This study aimed to analyze how green entrepreneurial orientation, sustainability strategies, and green process innovation improve the environmental performance of agricultural technology firms. The results show that green process innovation, sustainability strategy, and entrepreneurial orientation play a significant role in enhancing agricultural technology firms’ environmental performance. Agricultural technology firms achieve high environmental performance primarily through strategy or sustainability. In every green process, innovation is crucial and essential. This research offers several practical implications that can be utilized by managers of agricultural technology firms to develop systems with cleaner production techniques in agribusiness. The novelty of the study lies in analyzing the direct relationships among green entrepreneurial orientation, strategy, and innovation in promoting the environmental performance of agricultural technology firms by drawing data from an agriculturally oriented developing country such as India.

Temperature change and industrial green innovation: Cost increasing or responsibility forcing?

PurposeBuilding on performance feedback and threat-rigidity theories, this study aims to argue that environmental performance shortfalls are powerful motivators for shaping green innovation strategies. To examine our argument, this study extends the theoretical logic to organizational ambidexterity and examines green exploitation and exploration innovation and relative green ambidexterity as organizational responses to environmental performance shortfalls. This study addresses how environmental performance shortfalls affect the implementation of green exploitation and exploration innovation and relative green ambidexterity and how this chosen green innovation strategy affects corporate environmental performance.Design/methodology/approachThe authors test their theory using 145 sample firms’ environmental performance data spanning 2015 to 2021 and conduct a content analysis of their 697 sustainability reports spanning 2017 to 2021.FindingsThis paper finds that environmental performance shortfalls positively affect green exploitation innovation and relative green exploitation innovation and negatively affect green exploration innovation and relative green exploration innovation. It also finds that green exploration innovation and relative green exploration innovation positively affect environmental performance but that green exploitation innovation and relative green exploitation innovation negatively affect environmental performance.Originality/valueThe findings support the premise that environmental performance feedback guides the direction of strategic choices and actions related to green innovation and confirm the decisive role of green exploration innovation in improving environmental performance. This study augments performance feedback, threat-rigidity and organizational ambidexterity theories in the environmental management context.

Environmental performance, green finance and green innovation: What's the long-run relationships among variables?