Leveraging Green Innovation Practices for Organizational Sustainable Performance: A Structural Equation Modeling Approach

Abstract

Manufacturing sector has been the major contributor towards the economic development and the environmental degradation too. This is mainly because of the large scale activities carried out by the organizations in this sector. Organizations are finding it mandatory to adopt green practices in order to bring about sustainability in their performances purely because of the pressures from various stakeholders. This study by using the theoretical lens of RBV, analyzed the role of Green Innovation practices in predicting Environmental, Economic and Social Performance. To find out the answers of the research question, data was collected from 209 listed manufacturing organizations using a survey questionnaire and was analyzed using MPLUS 7.0. Results demonstrated that green innovation practices predicted environmental and economic performance more strongly than the social performance dimension. These findings revealed the significance of green innovation practices in achieving the sustainable performance and unveiled the unknowns on the said relationships while highlighting the important implications for managers, policy makers and future researchers.