Green innovation as a strategic imperative for sustainable business performance: Evidence from Malaysian industries during the COVID-19 pandemic

Abstract

This study explores how green innovations in organization, process, and marketing have impacted the environmental, social, and financial performance of major Malaysian industries during the COVID-19 pandemic. Based on the resource-based view, the research delves into how these green innovations help companies gain a competitive edge and achieve success. By examining data from 93 companies, the study finds that green organizational innovations significantly boost both environmental and social performance, while green process innovations mainly enhance social performance. Green marketing innovations indirectly improve environmental and social performance by positively influencing organizational and process innovations. Importantly, the study uncovers a strong positive link between environmental and financial performance, indicating that being environmentally responsible can also be financially rewarding. These findings provide valuable insights for policymakers and business leaders, underscoring the importance of promoting green innovation to achieve sustainable business practices and protect the environment, especially during times of global disruption.