Assessing the Impact Innovation on Sustainable Business Performance: Evidence from Nigerian Manufacturing Firms

This study investigated the impact of green innovation on sustainable business performance among manufacturing firms in Nigeria. Despite growing awareness of environmental responsibility, limited empirical evidence exists on how innovation influences sustainability outcomes in the Nigerian manufacturing sector. The study aimed to assess the effect of green innovation on the economic, environmental, and social dimensions of business performance, and to examine how firm characteristics such as size and technology adoption influence this relationship. A quantitative research design was employed using data collected through structured questionnaires from five major manufacturing firms: Dangote Cement Plc, Nestlé Nigeria Plc, Unilever Nigeria Plc, Cadbury Nigeria Plc, and Nigerian Breweries Plc. Out of fifty questionnaires distributed, forty-two valid responses were analyzed using Partial Least Squares Structural Equation Modeling. The findings revealed that green innovation had a significant positive effect on sustainable business performance, and that firm-specific characteristics strengthened this relationship. The study concludes that green innovation enhances profitability, operational efficiency, and environmental accountability. It recommends that manufacturing firms invest in clean technologies and integrate sustainability measures into their strategies, while policymakers should promote supportive regulations and incentives to foster innovation-driven sustainability.