Loading...
Please wait, while we are loading the content...
Similar Documents
The Nexus between Proactive Eco-Innovation and Firm Financial Performance: A Circular Economy Perspective
| Content Provider | MDPI |
|---|---|
| Author | Johl, Satirenjit Toha, Abu |
| Copyright Year | 2021 |
| Description | Eco-innovation has gained considerable attention in the academic and corporate world due to its potential in mitigating a firm’s sustainability issues. Most previous studies focused on the reactive approaches of eco-innovation using primary data. This study mitigates the existing research gap by highlighting proactive eco-innovation and using a secondary panel dataset. The prime objective of this study is to investigate the relationship between proactive eco-innovation and firms’ financial performance. Hence, the study will introduce the proactive eco-innovation index with the help of secondary panel data. In addition to that, the paper will also explore how proactive eco-innovation relates to circular economy. The theory of Resource-Based View (RBV) was used to explain the relationship among the variables. This study was conducted on 31 Malaysian public listed energy companies from 2015 to 2019. A proactive eco-innovation index was inferred by adapting three dimensions of eco-innovation (product, process, and technology) which is applicable for the energy sector. By applying random-effects GLS regression equation modeling, it was found that proactive eco-innovation (product eco-innovation, process eco-innovation, and technology eco-innovation) has a direct effect on firm financial performance. Furthermore, product and process eco-innovation is directly related to a circular economy through a sustainable product development process. The findings suggest that policymakers in the firm should proactively adopt eco-innovative practices. It will positively affect the circular economy as it will be cost-effective and help to reduce potential industrial pollution in the environment. |
| Starting Page | 6253 |
| e-ISSN | 20711050 |
| DOI | 10.3390/su13116253 |
| Journal | Sustainability |
| Issue Number | 11 |
| Volume Number | 13 |
| Language | English |
| Publisher | MDPI |
| Publisher Date | 2021-06-01 |
| Access Restriction | Open |
| Subject Keyword | Sustainability Environmental Engineering Eco-innovation Proactive Eco-innovation Proactive Eco-innovation Index Firm Financial Performance Panel Data Circular Economy |
| Content Type | Text |
| Resource Type | Article |
