Impact of Digital Transformation and Green Manufacturing Practices on Firm Performance with Mediating Role of Green Product Innovation: An Empirical Investigation with PLS-SEM Modeling

Abstract

Purpose: The objective of this research is to determine the impact of green manufacturing practices and digital transformation on firm performance, with a particular focus on the mediating role of green product innovation. Design/Methodology/Approach: The study conducted a survey of 212 employees from various businesses using a questionnaire-based method. The data is analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine the connections between digital transformation, green manufacturing practices, and company performance. The study also investigated the intermediary function of green product innovation in these connections and offered valuable insights into how sustainable practices might enhance corporate performance. Findings: This research indicates that green product innovation plays a vital role in connecting these practices to improved company success. The results suggests that organisations that have used digital transformation technologies are more inclined to foster innovation in environmental friendly goods, so enhancing sustainability and subsequently improving performance. Implications/Originality/Value: The present research contributes to the existing understanding of the impact of digital transformation and green manufacturing techniques on enhancing company performance with a specific emphasis on sustainability. The importance of digital transformation and environmentally-conscious manufacturing methods in improving the sustainability of enterprises is emphasised.