How Green Innovations and Employee Actions Boost Sustainability in Pakistani Manufacturing

What is it about?

In today's competitive landscape, firms are increasingly adopting green innovation (GI) to meet the demand for sustainable performance. This study, grounded in resource-based theory, examines how green process innovation, GI strategy, and green action innovation influence sustainable performance, with green product innovation as a mediator and employee green behavior as a moderator. Data from 411 employees in Pakistan's manufacturing sector was analyzed using structural equation modeling and Partial Least Squares regression. Results confirm that green process innovation and GI strategy are crucial for sustainable performance, highlighting the positive relationship between green process and product innovation. The study underscores the importance of addressing environmental protection for sustainability but notes limitations, suggesting future research to include diverse sectors and additional moderating variables.

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Photo by Homa Appliances on Unsplash

Photo by Homa Appliances on Unsplash

Why is it important?

This research is important because it addresses the critical need for sustainable practices in today's highly competitive and environmentally conscious market. By examining the impact of green innovation (GI) on firms' sustainable performance, the study provides valuable insights into how organizations can enhance their socio-ecological footprint. The focus on the mediating role of green product innovation and the moderating role of employee green behavior offers a comprehensive understanding of the mechanisms that drive sustainable business practices. This research is particularly relevant as it highlights the growing importance of ecological initiatives in promoting environmental well-being and long-term corporate sustainability. ### 2. Key Takeaways: - Green Innovation as a Driver of Sustainable Performance: The study confirms that green process innovation and GI strategies are crucial determinants of firms' sustainable performance. By adopting effective GI practices, companies can significantly reduce their environmental impact and enhance their socio-environmental performance. - Role of Employee Green Behavior: Employee green behavior plays a moderating role between green product innovation and sustainable performance. This indicates that the involvement and green initiatives of employees are essential in ensuring the successful implementation of eco-friendly products and practices within organizations. - Need for Broader Scope in Future Research: The study's limitations suggest that future research should include data from various countries and industries to achieve more comprehensive outcomes. Additionally, exploring other moderating variables such as innovation capabilities can provide deeper insights into the relationship between green product innovation and sustainable performance.