Green Innovation and Firm Performance: The Mediating Role of Sustainability in the Automotive Industry
|Authors||Maldonado-Guzmán, G, Garza-Reyes, J.A. and Pinzón-Castro, S.Y.|
Purpose – Green innovation and sustainability are two contemporary initiatives that are gaining more and more attention from researchers, academics, and industry professionals as they are considered important business strategies to improve environmental conditions and obtain better organisational performance. Besides, the growth of uncontrolled economic activities leads to an imbalance of economic, social, and environmental values in different sectors. However, little is known about the mediating role that economic, social, and environmental sustainability has in the relationship between green innovation and firm performance. Previous literature has focused on developed economies, but not on a developing economy such as that of Mexico. Therefore, this research fills this existing gap by exploring the mediating effects of sustainability in the relationship between green innovation and firm performance.
Design/methodology/approach – A theoretical research model that theorizes, through ten hypotheses, the antecedents and consequences of the mediating effect of economic, social and environmental sustainability and the occurrence between green innovation and firm performance is proposed. The model is tested through PLS-SEM using data that was collected using a questionnaire survey that was distributed among companies in the automotive industry in Mexico. In total, a sample of 460 responses was obtained.
Findings – The results suggest that green innovation has significant positive effects on economic and environmental sustainability, as well as on firm performance, but not on social sustainability. The results also indicate that the relationship between green innovation and firm performance improves considerably with the mediation of economic, social, and environmental sustainability.
Originality – The present study adds to the innovation and sustainability body of knowledge by analyzing and discussing the mediating role of sustainability in the relationship between green innovation and firm performance. It also generates new knowledge about the mediating effect that sustainability has on the relationship between green innovation and firm performance, particularly in the context of a developing economy such as that of Mexico.
Limitations – Despite the present study focused on an industrial sector that is commonly at the forefront of technological development, it was limited to a specific region of Mexico. Thus, its results must be taken with caution as more extensive results including other regions and nations will be required to further validate the results obtained from the present study.
|Keywords||Green innovation; economic sustainability; social sustainability|
|Journal||Management of Environmental Quality|
|Journal citation||pp. 1-22|
|Digital Object Identifier (DOI)||https://doi.org/10.1108/MEQ-02-2023-0058|
|Web address (URL)||https://www.emerald.com/insight/content/doi/10.1108/MEQ-02-2023-0058/full/html|
|Accepted author manuscript|
File Access Level
|Online||07 Aug 2023|
|Publication process dates|
|Accepted||21 Jul 2023|
|Deposited||07 Aug 2023|
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