Exploring Firms’ Green Innovation and Green Performance: A Systematic Review and Conceptual Framework
Abstract
Green innovation directly and indirectly influences green performance. It involves creating innovative solutions that contribute to the transition towards a greener and more sustainable economy. It is considered the key to addressing sustainability issues and enhancing green performance. Despite the increasing urgency to address environmental challenges, many firms still struggle to effectively implement green innovation and achieve sustainable green performance. Various studies have explored factors such as technology, organisation, and the environment in relation to green innovation and green performance. While most studies in Malaysia are from a management perspective, the review of the literature reveals that there is still a lack of a comprehensive framework related to green innovation and green performance, especially in the case of Malaysia. Therefore, this study aims to develop a comprehensive framework to enrich the understanding of green innovation and green performance. The TOEGD framework was developed for this purpose. That focuses on five dimensions: technology (T), organisation (O), environment (E), government (G), and digital (D) dimensions. The conceptual framework provides a guide for future research.
References
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Tamayo-Orbegozo, U., Vicente-Molina, M. A., & Villarreal-Larrinaga, O.(2017). Eco-innovation strategic model. A multiple-case study from a highly eco-innovative European region. Journal of Cleaner Production, 142, 1347–1367.
Tan, B. C., & Lau, T. C. (2010). Attitude towards the environment and green products: consumers' perspective. Management science and engineering, 4(2), 27.
Tietze, F., Schiederig, T., & Herstatt, C. (2011). What is green innovation?–A quantitative literature review. In The XXII ISPIM Conference.
Wagner, M., & Schaltegger, S. (2004). The effect of corporate environmental strategy choice and environmental performance on competitiveness and economic performance:: an empirical study of EU manufacturing. European Management Journal, 22(5), 557-572.
Wang, C. H. (2019). How organisational green culture influences green performance and competitive advantage: The mediating role of green innovation. Journal of Manufacturing Technology Management, 30(4), 666-683.
Webster, J., & Watson, R. T. (2002). Analyzing the past to prepare for the future: Writing a literature review. MIS quarterly, xiii-xxiii.
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Yang, C. S., Lu, C. S., Haider, J. J., & Marlow, P. B. (2013). The effect of green supply chain management on green performance and firm competitiveness in the context of container shipping in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 55, 55-73
Zhang, Y., Sun, J., Yang, Z., & Wang, Y. (2020). Critical success factors of green innovation: Technology, organisation and environment readiness. Journal of cleaner production, 264, 121701.
Askarany, D. (2005). Diffusion of innovations in organisations. In Encyclopedia of Information Science and Technology, First Edition (pp. 853-857). IGI Global.
Bacallan, J. J. (2000). Greening the supply chain. Business and Environment, 6(5), 11-12.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Castellacci, F., & Lie, C. M. (2017). A taxonomy of green innovators: Empirical evidence from South Korea. Journal of Cleaner Production, 143, 1036-1047.
Chen, T. B., & Chai, L. T. (2010). Attitude towards the environment and green products: consumers' perspective. Management science and engineering, 4(2), 27.
Chinander, K. R. (2001). Aligning accountability and awareness for environmental performance in operations. Production and Operations Management, 10(3), 276-291.
Etzion, D. (2007). Research on organisations and the natural environment, 1992-present: A review. Journal of Management, 33(4), 637-664.
FuiYeng, W., & Yazdanifard, R. (2015). Green marketing: A study of consumers’ buying behaviour in relation to green products. Global Journal of Management and Business Research: E Marketing, 15(5), 16-23.
Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review, 33(3), 114-135.
Guo, Y., Wang, L., & Chen, Y. (2020). Green entrepreneurial orientation and green innovation: The mediating effect of supply chain learning. Sage Open, 10(1), 2158244019898798.
Hansmann, K. W., & Claudia, K. (2001). Environmental management policies. Green manufacturing and operations: From design to delivery and back, 192-204.
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986-1014.
Hick, S. (2000). Morals maketh the money. Australian CPA, 70(4), 72-73.
Jamshed, K., Shah, S. H. A., Majeed, Z., Al-Ghazali, B. M., & Jamshaid, S. (2022). Role of green leadership and green training on the green process innovation: mediation of green managerial innovation. Journal of Xidian University, 16(2), 66-72.
Lammers, J. C., Garcia, M. A., Putnam, L. L., & Mumby, D. K. (2014). Institutional theory. The SAGE handbook of organisational communication: advances in theory, research, and methods, 195-216.
Le, T. T., Vo, X. V., & Venkatesh, V. G. (2022). Role of green innovation and supply chain management in driving sustainable corporate performance. Journal of Cleaner Production, 374, 133875.
Madhani, P. M. (2010). Resource-based view (RBV) of competitive advantage: an overview. Resource-based view: concepts and practices, Pankaj Madhani, ed, 3-22.
Makovholo, P., Batyashe, N., Sekgweleo, T., & Iyamu, T. (2017). Diffusion of innovation theory for information technology decision making in organisational strategy. Journal of Contemporary Management, 14(1), 461-481.
Munawar, S., Yousaf, H. Q., Ahmed, M., & Rehman, S. (2022). Effects of green human resource management on green innovation through green human capital, environmental knowledge, and managerial environmental concern. Journal of Hospitality and Tourism Management, 52, 141-150.
MyHijau. (2023). Statistics. https://www.myhijau.my/statistics/.
North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
Ogiemwonyi, O., Alam, M. N., Hago, I. E., Azizan, N. A., Hashim, F., & Hossain, M. S. (2023). Green innovation behaviour: Impact of industry 4.0 and open innovation. Heliyon.
Olsthoorn, X., Tyteca, D., Wehrmeyer, W., & Wagner, M. (2001). Environmental indicators for business: a review of the literature and standardisation methods. Journal of cleaner production, 9(5), 453-463.
Porter, M. E., & Linde, C. V. D. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of economic perspectives, 9(4), 97-118.
Rogers, E. M. (2003). Diffusion of Innovations. New York, NY: Free Press.
Shamdasani, P., Chon-Lin, G. O., & Richmond, D. (1993). Exploring green consumers in an oriental culture: Role of personal and marketing mix factors. Advances in consumer research, 20(1).
Saudi, M. M., Sinaga, O., & Zainudin, Z. (2019). The effect of green innovation in influencing sustainable performance: Moderating role of managerial environmental concern. International Journal of Supply Chain Management, 8(1), 303-310.
Scott, W. R. (2005). Institutional theory: Contributing to a theoretical research program. Great minds in management: The process of theory development, 37(2), 460-484.
Shaharudin, M. S., Ganesan, Y., Fernando, Y., & Haron, H. (2022). Green Technology Adoption in Malaysia: Where Are We Now? What Is Lacking? & What Should We Do Next. Journal of Information System and Technology Management, 7(27), 109-121.
Sharma, S. Prakash, G., Kumar, A., Mussada, E. K., Antony, J., & Luthra, S. (2021). Analysing the relationship of adaption of green culture, innovation, green performance for achieving sustainability: Mediating role of employee commitment. Journal of Cleaner Production, 303, 127039.
Takalo, S. K., & Tooranloo, H. S. (2021). Green innovation: A systematic literature review. Journal of Cleaner Production, 279, 122474.
Tamayo-Orbegozo, U., Vicente-Molina, M. A., & Villarreal-Larrinaga, O.(2017). Eco-innovation strategic model. A multiple-case study from a highly eco-innovative European region. Journal of Cleaner Production, 142, 1347–1367.
Tan, B. C., & Lau, T. C. (2010). Attitude towards the environment and green products: consumers' perspective. Management science and engineering, 4(2), 27.
Tietze, F., Schiederig, T., & Herstatt, C. (2011). What is green innovation?–A quantitative literature review. In The XXII ISPIM Conference.
Wagner, M., & Schaltegger, S. (2004). The effect of corporate environmental strategy choice and environmental performance on competitiveness and economic performance:: an empirical study of EU manufacturing. European Management Journal, 22(5), 557-572.
Wang, C. H. (2019). How organisational green culture influences green performance and competitive advantage: The mediating role of green innovation. Journal of Manufacturing Technology Management, 30(4), 666-683.
Webster, J., & Watson, R. T. (2002). Analyzing the past to prepare for the future: Writing a literature review. MIS quarterly, xiii-xxiii.
World Economic Forum. (2021). Bridging Digital and Environmental Goals: A Framework for Business Action.
Yang, C. S., Lu, C. S., Haider, J. J., & Marlow, P. B. (2013). The effect of green supply chain management on green performance and firm competitiveness in the context of container shipping in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 55, 55-73
Zhang, Y., Sun, J., Yang, Z., & Wang, Y. (2020). Critical success factors of green innovation: Technology, organisation and environment readiness. Journal of cleaner production, 264, 121701.
Published
2024-07-31
How to Cite
MING TIONG, Kui; TING NGOO, Yee; FONG CHEAH, Lee.
Exploring Firms’ Green Innovation and Green Performance: A Systematic Review and Conceptual Framework.
International Journal of Business and Technology Management, [S.l.], v. 6, n. 2, p. 496-504, july 2024.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/27291>. Date accessed: 19 sep. 2024.
Section
English Section
