Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective

Abstract

"Going green" has become an important environmental issue in contemporary business practice worldwide. This study examined the influence of a number of factors on green innovation and the consequences in terms of performance. The stakeholder theory was adopted to observe the effects of each stakeholder on the green innovation practices of companies and to determine how green innovation practices influence environmental and business performance. A research model with eight hypotheses was proposed to determine the associations between the variables of interest. An empirical survey was conducted of 202 Taiwanese service and manufacturing companies. The survey found that pressure from competitors and the government, along with employee conduct, all had significant and positive effects on green innovation practices. Additionally, a moderating effect of innovation orientation existed only in the relationship between green product innovation practices and employee conduct. This study not only provides a systematic way to analyze the effects of green innovation practices but also suggests the best means for companies to adopt green innovation practices.

The Effects of Corporate Social Responsibility on Manufacturing Industry Performance: The Mediating Role of Social Collaboration and Green Innovation

“…Visionary firm in adopting and implementing the green innovation will get positive response from stakeholders and eventually bring implications on the firm performance. The results of previous studies suggested that green innovations have in creased the cost savings and affected on the environmental performance and business performance (Lin et al 2013, Alhadid and As'ad 2014, Weng et al 2015. Based on the description above, the proposed hypothesis is:…”

“…At this point, green innovation can enhance the value of prod ucts made by a firm, reduce the environmental costs, and eventually lead to a better firm performance. Alhadid and As'ad (2014), Chen et al (2006), andWeng et al (2015) ex plained that green innovation can improve the performance of firms that are pursuing CSR strategy. In this case, CSR needs to be directed to ethical issues of the environment as to reduce the negative impacts of company's activities, im prove profitability, financial gain, and competitiveness, and, at the same time, benefit the society (King and Lenox 2002, Klassen and Whybark 1999, Orlitzky et al 2011).…”

Environmental Regulation, Green Innovation, and Industrial Green Development: An Empirical Analysis Based on the Spatial Durbin Model

“…The current study defines green innovation as new or modified products and processes, including technology, managerial, and organizational innovations, that help sustain the surrounding environment [36]. According to the theory of "decoupling", green growth means that while achieving economic development and social welfare improvement, resource consumption and environmental damage are reduced, really achieving the decoupling of economy, resources and environment.…”

Constraints management and value chain performance for sustainable development

“…Firms should endeavor to improve their economic gains through value creation; through managing costs in their supply chain and adjust their strategies. According to Weng et al (2015), green innovation practices have a significant effect on firm performance (financial and non-financial). Firms should pursue activities that enhance not only efficiency and competitiveness but also leave a positive impact on the natural environment and the society (Carter & Rogers, 2008).…”