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The Impact of Sustainable Innovation on Environment, Social and Governance (ESG) Framework: A Moderating Paradigm from Research and Development (R&D) Expenses

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  • Shahnaz Akter
  • Emranul Hoque

Abstract

In recent years, businesses are giving more and more emphasis to create sustainable innovations that balance economic, environmental, and social objectives. The objective of this paper is to investigate the impacts of sustainable innovation on Environmental, social and governance (ESG) performance. This paper also examines the moderating effect of Research and Development (R&D) expenses on sustainable innovation and ESG. The analysis makes use of information from 34 Bangladeshi listed firms from 2018 to 2022. A content analysis method was applied to collect the panel data from secondary sources. To test the study hypotheses, multiple regression analysis is employed. The result shows that sustainable innovation has a positive impact on ESG performance. In addition, the study also found that R&D has no significant effect on the relationship between sustainable innovation and ESG performance. The results could assist managers and policymakers in developing nations in establishing sustainable innovation strategies to attain ESG performance. This is the yardstick study towards SDGSs to examine the impacts of Sustainable innovation and ESG performance considering R&D expenses as a moderating variable in the context of Bangladesh, an emerging country.

Suggested Citation

  • Shahnaz Akter & Emranul Hoque, 2024. "The Impact of Sustainable Innovation on Environment, Social and Governance (ESG) Framework: A Moderating Paradigm from Research and Development (R&D) Expenses," Business Management and Strategy, Macrothink Institute, vol. 15(2), pages 159-179, December.
    • Handle: RePEc:mth:bmsmti:v:15:y:2024:i:2:p:159-179
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    References listed on IDEAS

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    1. Md Abu Toha & Satirenjit Kaur Johl, 2021. "Panel Dataset to Assess Proactive Eco-Innovation in the Paradigm of Firm Financial Progression," Data, MDPI, vol. 6(12), pages 1-10, December.
    2. Chenli Yin & Maria Paz Salmador & Dan Li & M. Begoña Lloria, 2022. "Green entrepreneurship and SME performance: the moderating effect of firm age," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 255-275, March.
    3. Yuyu Zhan & Yuan Wang & Yifan Zhong, 2023. "Effects of green finance and financial innovation on environmental quality: new empirical evidence from China," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 36(3), pages 2164034-216, December.
    4. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2022. "Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5052-5079, April.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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