IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v26y2024i7d10.1007_s10668-023-03328-4.html
   My bibliography  Save this article

Impact of green innovation on environmental performance and financial performance

Author

Listed:
  • Nguyen Minh Ha

    (Ho Chi Minh City Open University
    Ho Chi Minh City Open University
    Ho Chi Minh City Open University
    Ho Chi Minh City Open University)

  • Pham Anh Nguyen

    (Ho Chi Minh City Open University)

  • Nguyen Vinh Luan

    (Ho Chi Minh City Open University)

  • Nguyen Minh Tam

    (Duc Hoa District People’s Committee)

Abstract

In today’s world, businesses and organizations should behave appropriately for the environment in order to make a contribution to welfare benefits while also gaining business opportunities and economic development. Green practice’s adoption could assist businesses to start saving mineral wealth, and power, avoid environmental damage and even result in the long development of businesses. This study examined the correlation between external environmental factors and green product innovation, as well as the impact of green product innovation on the environmental and financial performance of 400 manufacturing SMEs in Vietnam's primary industrial units. Customer pressure, government pressure, government support, and market changes all had a beneficial effect on green product innovation, according to the findings. Furthermore, this study found a strong positive relationship between green product innovation and environmental and financial performance. Based on the research findings of this research, SME administrators can effectively adapt their business strategies to attain greater financial results and a comparative position in the market while utilizing green initiatives to grow their businesses and preserve the natural environment in a sustainable manner.

Suggested Citation

  • Nguyen Minh Ha & Pham Anh Nguyen & Nguyen Vinh Luan & Nguyen Minh Tam, 2024. "Impact of green innovation on environmental performance and financial performance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17083-17104, July.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:7:d:10.1007_s10668-023-03328-4
    DOI: 10.1007/s10668-023-03328-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-03328-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-023-03328-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Binh Do & Ninh Nguyen, 2020. "The Links between Proactive Environmental Strategy, Competitive Advantages and Firm Performance: An Empirical Study in Vietnam," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
    2. Hua-Hung (Robin) Weng & Ja-Shen Chen & Pei-Ching Chen, 2015. "Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective," Sustainability, MDPI, vol. 7(5), pages 1-30, April.
    3. Matthew J. Kiernan, 2007. "Universal Owners and ESG: leaving money on the table?," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(3), pages 478-485, May.
    4. Kristel Buysse & Alain Verbeke, 2003. "Proactive environmental strategies: a stakeholder management perspective," Strategic Management Journal, Wiley Blackwell, vol. 24(5), pages 453-470, May.
    5. Markus Hang & Jerome Geyer‐Klingeberg & Andreas Rathgeber & Stefan Stöckl, 2018. "Economic Development Matters: A Meta‐Regression Analysis on the Relation between Environmental Management and Financial Performance," Journal of Industrial Ecology, Yale University, vol. 22(4), pages 720-744, August.
    6. Rosa Maria Dangelico & Devashish Pujari & Pierpaolo Pontrandolfo, 2017. "Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 490-506, May.
    7. Yu-Shan Chen, 2008. "The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms," Journal of Business Ethics, Springer, vol. 77(3), pages 271-286, February.
    8. Karen Palmer & Wallace E. Oates & Paul R. Portney & Karen Palmer & Wallace E. Oates & Paul R. Portney, 2004. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 3, pages 53-66, Edward Elgar Publishing.
    9. Chee Yew Wong & Christina W.Y. Wong & Sakun Boon-itt, 2020. "Effects of green supply chain integration and green innovation on environmental and cost performance," International Journal of Production Research, Taylor & Francis Journals, vol. 58(15), pages 4589-4609, July.
    10. Chaiyawit Muangmee & Zdzisława Dacko-Pikiewicz & Nusanee Meekaewkunchorn & Nuttapon Kassakorn & Bilal Khalid, 2021. "Green Entrepreneurial Orientation and Green Innovation in Small and Medium-Sized Enterprises (SMEs)," Social Sciences, MDPI, vol. 10(4), pages 1-15, April.
    11. Chieh-Yu Lin & Yi-Hui Ho, 2011. "Determinants of Green Practice Adoption for Logistics Companies in China," Journal of Business Ethics, Springer, vol. 98(1), pages 67-83, January.
    12. Lu Qiu & Die Hu & Yu Wang, 2020. "How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2695-2714, September.
    13. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    14. Daniel Linus Naila, 2013. "The Effect of Environmental Regulations on Financial Performance in Tanzania: A Survey of Manufacturing Companies Quoted on the Dar Es Salaam Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 99-112.
    15. Matthias Ehrgott & Felix Reimann & Lutz Kaufmann & Craig Carter, 2011. "Social Sustainability in Selecting Emerging Economy Suppliers," Journal of Business Ethics, Springer, vol. 98(1), pages 99-119, January.
    16. Ching-Hsun Chang, 2011. "The Influence of Corporate Environmental Ethics on Competitive Advantage: The Mediation Role of Green Innovation," Journal of Business Ethics, Springer, vol. 104(3), pages 361-370, December.
    17. Sandra Rothenberg & Stelios C. Zyglidopoulos, 2007. "Determinants of environmental innovation adoption in the printing industry: the importance of task environment," Business Strategy and the Environment, Wiley Blackwell, vol. 16(1), pages 39-49, January.
    18. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    19. Chiou, Tzu-Yun & Chan, Hing Kai & Lettice, Fiona & Chung, Sai Ho, 2011. "The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 822-836.
    20. Ada Scupola, 2003. "The Adoption of Internet Commerce by SMEs in the South of Italy: An Environmental, Technological and Organizational Perspective," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 6(1), pages 52-71, January.
    21. Liang Li & Hajar Msaad & Huaping Sun & Mei Xuen Tan & Yeqing Lu & Antonio K.W. Lau, 2020. "Green Innovation and Business Sustainability: New Evidence from Energy Intensive Industry in China," IJERPH, MDPI, vol. 17(21), pages 1-18, October.
    22. Min Xue & Francis Boadu & Yu Xie, 2019. "The Penetration of Green Innovation on Firm Performance: Effects of Absorptive Capacity and Managerial Environmental Concern," Sustainability, MDPI, vol. 11(9), pages 1-24, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    2. Hao Zhang & Jie He & Xiaomeng Shi & Qiong Hong & Jie Bao & Shuqi Xue, 2020. "Technology Characteristics, Stakeholder Pressure, Social Influence, and Green Innovation: Empirical Evidence from Chinese Express Companies," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    3. Norifumi Kawai & Roger Strange & Antonella Zucchella, 2016. "Stakeholder Pressures, EMS Implementation, and Green Innovation in MNC Overseas Subsidiaries," DEM Working Papers Series 121, University of Pavia, Department of Economics and Management.
    4. Feng Zhang & Lei Zhu, 2019. "Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1012-1026, September.
    5. Hua-Hung (Robin) Weng & Ja-Shen Chen & Pei-Ching Chen, 2015. "Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective," Sustainability, MDPI, vol. 7(5), pages 1-30, April.
    6. Xinwei Li & Wenjuan Zeng & Mao Xu, 2022. "The Moderating Role of IT Capability on Green Innovation and Ambidexterity: Towards a Corporate Sustainable Development," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    7. Bang-Ning Hwang & Chi-Yo Huang & Chih-Hsiung Wu, 2016. "A TOE Approach to Establish a Green Supply Chain Adoption Decision Model in the Semiconductor Industry," Sustainability, MDPI, vol. 8(2), pages 1-30, February.
    8. Yu Zhang & Yajuan Wang, 2022. "Do Managerial Ties Help or Hinder Corporate Green Innovation? The Moderating Roles of Contextual Factors," IJERPH, MDPI, vol. 19(7), pages 1-19, March.
    9. Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
    10. Mingfeng Tang & Grace Walsh & Daniel Lerner & Markus A. Fitza & Qiaohua Li, 2018. "Green Innovation, Managerial Concern and Firm Performance: An Empirical Study," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 39-51, January.
    11. Chotia, Varun & Cheng, Yue & Agarwal, Reeti & Vishnoi, Sushant Kumar, 2024. "AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    12. El-Kassar, Abdul-Nasser & Singh, Sanjay Kumar, 2019. "Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 483-498.
    13. Huang, Yi-Chun & Chen, Chih Ta, 2022. "Exploring institutional pressures, firm green slack, green product innovation and green new product success: Evidence from Taiwan's high-tech industries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    15. Woon Leong Lin & Azali Bin Mohamed & Murali Sambasivan & Nick Yip, 2020. "Effect of green innovation strategy on firm‐idiosyncratic risk: A competitive action perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 886-901, March.
    16. Alexandre Rodrigues da Silva & Claudia Brito Silva Cirani & Fernando Antonio Ribeiro Serra & Angélica Pigola & Priscila Rezende da Costa & Isabel Cristina Scafuto & Roberto Lima Ruas & Marcos Rogério , 2023. "Determining Factors on Green Innovation Adoption: An Empirical Study in Brazilian Agribusiness Firms," Sustainability, MDPI, vol. 15(7), pages 1-23, April.
    17. Andersén, Jim, 2021. "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," Technovation, Elsevier, vol. 104(C).
    18. 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.
    19. Chao Hung Wang, 2020. "An environmental perspective extends market orientation: Green innovation sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3123-3134, December.
    20. Jung Wan Lee & Young Min Kim & Young Ei Kim, 2018. "Antecedents of Adopting Corporate Environmental Responsibility and Green Practices," Journal of Business Ethics, Springer, vol. 148(2), pages 397-409, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:26:y:2024:i:7:d:10.1007_s10668-023-03328-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.