Green innovation and firm performance: An empirical analysis of operational efficiency, environmental commitment and technological capability

Wagan, Shah Mehmood and Ashar, Muhammad Usman and Zhang, Xinli and Sidra, Sidra (2025) Green innovation and firm performance: An empirical analysis of operational efficiency, environmental commitment and technological capability. World Journal of Advanced Research and Reviews, 25 (3). pp. 1148-1160. ISSN 2581-9615

This research aims in growing interest and relevance of business sustainability, especially through green innovation. Quantitative research methodology has been done by applying a survey in a randomly selected sample of 632 organizations in various sectors, this research has utilized SEM on constructs as green product innovation, process innovation, operational efficiency, and firm performance. Results show that green innovation strategies significantly enhance firm performance through operational efficiency using market competitiveness. It indicates that both green product and process innovations are positively related to firm performance measures. Further, this research outlines moderating influence of regulatory pressures within these relationships, indicating complexity that firms are faced with when they attempt to apply sustainable practices. The findings underline the importance of green innovation in enhancing performance of a firm. They also indicate such competitive advantages as having great potential for organizations looking to weave sustainability into fabric of their business strategy.