Green innovation's impact on Pakistani manufacturing SMEs' environmental and financial performance is examined in this article. The Resource-Based View (RBV) was used to study product and process green innovation. We used Partial Least Squares Structural Equation Modelling to examine data from an online survey of 381 Punjabi SMEs. Green innovation is positively correlated with environmental and financial performance by 62.7 and 41.9, respectively. According to the research, SMEs can achieve dual performance by supporting environmentally friendly product designs, energy-saving technology, and sustainable production procedures. This leads to more profits and environmental performance. The research articles supplement the literature in the sense that they demonstrate that green innovation capabilities are valuable and distinctive organisational resources that provide sustainable competitive advantage. This means that the small and mid-sized enterprises (SMEs) are supposed to be strategic in their investments in the new green technology and processes. The policy makers should support them financially, by regulations and training.
Sajid et al. (2025) studied this question.