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The catalytic role of “responsible investments” in innovation and firm performance link: in the context of manufacturing in Asia-Pacific

Author

Listed:
  • Prof. (Dr.) Amol S. Dhaigude

    (T A Pai Management Institute, Manipal Academy of Higher Education,)

  • Narain Gupta

    (Management Development Institute Gurgaon)

  • Deepak Sardana

    (University of South Australia)

  • Vikas Kumar

    (The University of Sydney Business School, The University of Sydney)

  • Milé Terziovski

    (Swinburne University of Technology)

Abstract

Technological innovations while economically prudent may have harmful consequences to the planet and/or people. This paper empirically investigates the moderating effect of responsible investment on the influence of innovation on firm performance in manufacturing industry. The hypothesized relationships are justified using signalling theory. Relationships are tested using data from six countries in Asia-pacific region, namely Australia, Korea, Taiwan, China, India, and Vietnam. The established measures are drawn from well-established GMRG fifth version survey instrument. The empirical analysis on 297 data points was done using SmartPLS3. The result strongly suggests that the responsible investments have significant positive moderating effect on the innovation, product and process, and firm performance relationships. Managers are, therefore, encouraged to not only consider responsible consequences of technological innovation, but also pay attention to the responsible investment aspects that influence innovation-performance relationship.

Suggested Citation

  • Prof. (Dr.) Amol S. Dhaigude & Narain Gupta & Deepak Sardana & Vikas Kumar & Milé Terziovski, 2024. "The catalytic role of “responsible investments” in innovation and firm performance link: in the context of manufacturing in Asia-Pacific," Asia Pacific Journal of Management, Springer, vol. 41(3), pages 1315-1343, September.
    • Handle: RePEc:kap:asiapa:v:41:y:2024:i:3:d:10.1007_s10490-023-09882-9
    DOI: 10.1007/s10490-023-09882-9
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