The role of financial resources in SMEs' financial and environmental performance; the mediating role of green innovation

Abstract

<abstract> <p>The current study investigates the influence of financial resources on environmental and financial performance with the mediating role of green practices (innovation) in manufacturing firms of the emerging economy, Pakistan. The research model and its proposed hypothesis was using 294 manufacturing firms' samples, for fruitful insights, the hypothesis was tested through a structured equation model using Smart PLS 3. Our results exhibited a positive and significant impact of financial resources on financial performance but not on environmental performance. However, green innovation fully mediates the relationship between financial resources and financial performance, while partially mediate the relationship between financial resources and environmental performance. Considering our insight, we suggest to the government that financially support the SMEs sector because they have a lack of tangible and intangible resources due to small size, and to easily adapt the green practices.</p> </abstract>

The Role of Green Innovation to Achieve Sustainable Business Performance of MSMEs in the Covid-19 Pandemic

“…Then the Pvalue for green innovation against environmental performance was 0.000 < 5% (0.05) so that hypothesis was supported, it could be concluded that there was significant effect between green innovation on environmental performance.The results of this study indicated that green innovation had a positive and significant effect on sustainable business performance [2], [13], [14], especially on social performance and environmental performance. The results of this study strengthened the results of previous studies conducted by [4], [8], [15], [16]. Meanwhile, for economic performance, it showed a negative and insignificant effect, where this results was contrary to the results of research [16], which suggested that green innovation had a positive and significant effect on economic performance.…”

Path to sustainable development: Does digital economy matter in manufacturing green total factor productivity?

“…The innovative activities of the digital economy involve a large investment scale, high investment risk, and lagging economic benefits, and face the dual problems of high adjustment and high financing costs (Ren et al, 2018). Therefore, whether stable and sufficient financial resources can be obtained will directly affect the breakthrough and diffusion of technology (Khan et al, 2022; Wang, Gu, et al, 2021). On the one hand, regions with a high level of financial development have a sound financial information disclosure system and financial development platform.…”

Green core competence and firm performance in a post‐conflict country, Iraq

“…Companies pursuing green innovation have been found to enjoy a first-mover advantage that enables them to demand a higher price for green products and services while at the same time improving their competitive advantage and developing new markets (Chen, 2008;Lin & Chen, 2017;Wang, 2019).However, successful green innovation and any competitive advantage derived from it require suitable capabilities (Chen, 2008). In this paper, we consider the role played by green core competence, the set of capabilities a firm can bring to bear to achieve sound environmental management and green innovation (Chen, 2008).Green core competence has been found to improve green innovation (Chang, 2016;Wang, 2020), and successful green innovation has been shown to improve firm performance, in environmental, financial, and market terms (Karimi Takalo et al, 2021: Khan et al, 2021.…”