Green Innovation (GI) encompasses the development and implementation of eco-friendly products and processes aimed at reducing environmental impact and enhancing firm performance. This research examines the direct impacts of green process innovation and green product innovation on the green firm performance, along with the moderating influence of Green Environmental Commitment in these interactions. The research targeted 223 small and medium-sized enterprises in Uttar Pradesh, India, each generating over 25% of their earnings from environmentally focused operations. Data from 662 top, middle, and lower-level managers were analysed for reliability and validity. Smart partial least squares in structural equation modelling were used to evaluate the hypotheses. The findings showed that green company performance is considerably and favourably impacted by both green process and green product innovation. Furthermore, Green Environmental Commitment, specifically in the form of top management’s proactive commitment to environmental goals and resource allocation, strengthens the positive impact of green process innovation and green product innovation on green firm performance. These findings provide valuable insights for managers and policymakers, emphasising the importance of refining strong environmental commitment within organisations to maximise the benefits of GI strategies and drive both environmental sustainability and firm performance.
Bansal et al. (Thu,) studied this question.
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