The role of Environmental Innovation in enhancing the firm performance
DOI:
https://doi.org/10.61841/n2fw6251Keywords:
Environmental performance,, environmental innovation,, financial performance, Malaysia.Abstract
Company environmental practices are able to create competitive advantage, which in turn enhances their performance. However, environmental practices are expensive and complex to realise the expected benefits, and require effective implementation, thus making them a risky proposition with high failure rate. Thus, it is essential for the company to identify the truly environmental ca pabilities, for enhancing the company environmental competitive and financial performance. This research aims
To capitalize the role of Environmental Innovation in enhancing the firm performance. In this study, a total of 124 responses were collected from managers of EMS14001 certified manufacturers in Malaysia, and data was subjected to a structural equation analysis using the Smart PLS version 3.2.7 software. Results endorse environmental innovation as the key enabler for the creation of economic values from environmental management i.e. environmental performance. This is owing to its function as the sole factor that directly contributes to firm performance. Moreover, environmental innovation is also found to be the full mediator that translates benefits of environmental performance into financial performance.
Downloads
References
1. Barbosa, N., & Louri, H. (2005). Corporate Performance: Does Ownership Matter? A Comparison of Foreign and Domestic-Owned Firms in Greece and Portugal. Review of Industrial Organization , 27(1),73-102.
2. Berger, A.N., Bonaccorsi, P, E. (2006). Capital Structure and Firm Performance: A New Approach to Testing Agency Theory and An Application to the Banking Industry. Journal of Banking and Finance 30,1065-1102.
3. Brammer, S., & Millington, A. (2008). Does It Pay to be Different? An Analysis of The Relationship Between Corporate Social and Financial Performance. Strategic Management Journal , 29(12),1325- 1343.
4. Buferna, F., Bangassa, K. & Hodgkinson, L. (2005). Determinants of Capital Structure :Evidence from Libya.Research Paper Series.
5. Campello, M., Graham, J. R., & Harvey, C. R. (2010). The Real Effects of Financial Constraints: Evidence from Financial Crisis. Journal of Economic , 97(3),470-487.
6. Claessens, S., Djankov, S. & Xu, L. C. (2000). Corporate Performance in the East Asian Financial Crisis. The World Bank Research Observe, 15(1), 23-46.
7. Craighead, C., Hult, & Ketchen. (2009). The Effects of Innovation–Cost Strategy, Knowledge, and Action in the Supply Chain on Firm Performance. . Journal of Operations Management , 27(5),405-421.
8. Cui, H., & Mak, Y. T. (2002). The Relationship between Managerial Ownership and Firm Performance in High R&D Firms. . Journal of Corporate Finance , 8(4),313-336.
9. Ebaid, I. E. (2009).The Impact of Capital-Stucture Choice on Firm Performance: Empirical Evidence from Egypt. The Journal of Risk Finance, 10(5),477-487.
10. Foo, S. M. (2002). An Investigation Of The Relationship Between Capital Structure And Corporate Performance In The Trading/Services and Plantation Sector. MBA Project Paper .
11. Fraser, D. R., Zhang, H., & Derashid, C. (2006). Capital Structure and Political Patronage: The Case of Malaysia.
12. Journal of Banking & Finance , 30(4),1291-1308.
13. Gleason, K. C., Mathur, L. K. & Mathur, I. (2000). The Interrelationship between Culture, Capital Structure, and Performance: Evidence from European Retailers. Journal of Business Research, 50(2), 185-191.
14. Gonenc, H. (2003) Capital Structure Decisions Under Micro Institutional Settings: The Case of Turkey, Journal of Emerging Market Finance, 2(1),57-82.
15. Amith Kumar B, Prasanna Habbu, Thimmasetty, Lakshman, Prabha Hullatti, Ravi Kumar S. "Phytosomes as Novel Drug Delivery System for Herbal Medicine –A Review." Systematic Reviews in Pharmacy 8.1 (2017), 5-7. Print. doi:10.5530/srp.2017.1.2
16. Sorli, A., Kaufman, S., Dobnikar, U., Fiscaletti, D. Advanced relativity for the renaissance of cosmology and evolution of life (2017) NeuroQuantology, 15 (4), pp. 37-44.
17. Sorli, A., Dobnikar, U., Fiscaletti, D., Koroli, V. Advanced relativity: Multidimensionality of consciousness and mind, origin of life, PSI phenomena (2017) NeuroQuantology, 15 (2), pp. 109-117.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
