Cited by 151Environmental Sustainability in BusinessSustainability and Innovation in BusinessCorporate Social Responsibility Reporting

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Firm Sustainable Development Goals and Firm Financial Performance through the Lens of Green Innovation Practices and Reporting: A Proactive Approach

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Khan, Parvez Alam, Johl, Satirenjit Kaur, Akhtar, Shakeb·2021·Journal of Risk and Financial Management

Abstract

The current global economy demands synergy between ecological responsiveness and proactive business models. To analyze these dynamics, the objective of this study is to simultaneously investigate the effects of green innovation practices concerning the sustainable development goals (SDG) and financial performance of firms. This study also advocates for the injection of green innovation reporting into sustainable reporting for greater disclosure. Data from sixty-seven companies from five continents and the top five blue chip firms for each country are collected through content analysis, with the generalized least squares (GLS) approach used to test a causal relationship hypothesis. The results indicate mixed findings, with green product innovation showing positive relationships with returns on equity (ROE) and returns on investments (ROI). At the same time, green process innovation shows negative relationships with returns on assets (ROA) but shows a positive impact on returns on investments (ROI) and firm SDGs. In contrast, green service innovation shows an insignificant relationship with financial performance and SDGs. On the other hand, non-operational green innovation variables and green marketing positively affect returns on assets and investment, showing significant negative impacts on returns on equity. However, green organizational innovation shows an insignificant relationship with firm financial performance and SDGs. In addition, this study also shows that the Australia/New Zealand region is the leader in green innovation reporting, followed by Europe, Asia, Africa, and lastly, North America.

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Show all 102 references

Research works printed but not linked: 7

  1. Shahein, 2019, Building a conceptual proposed model for the total innovation DNA, European Journal of Business and Innovation Research, 7, 18
  2. Baltagi, Badi (2008). Econometric Analysis of Panel Data, John Wiley & Sons.
  3. Gujarati, Damodar N., and Porter, Dawn C. (2009). Basic Econometrics, McGraw-Hills Inc.. [International ed.].
  4. Huber, 1967, Under Nonstandard Conditions, Proceedings of the Fifth Berkeley Symposium on Mathematical Statistics and Probability: Weather Modification, 5, 221
  5. Khan, Parvez Alam, and Johl, Satirenjit Kaur (2020). Firm Performance from the Lens of Comprehensive Green Innovation and Environmental Management System ISO 14001. Business and Economy: Recent Updates, Vide Leaf. · DOI
  6. Pisano, 2015, You need an innovation strategy, Harvard Business Review, 93, 44
  7. Putri, 2020, Firm performance in environmentally-friendly firms in Indonesia: The effects of green innovation, International Journal of Innovation, Creativity and Change, 13, 464

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Metadata

Authors
Khan, P. A., Johl, S. K., & Akhtar, S.
Affiliations
  • Universiti Teknologi Petronas (MY)
  • Galgotias University (IN)
Corresponding author
Johl, Satirenjit Kaur
Venue
Journal of Risk and Financial Management
Publisher
MDPI AG
Published
2021-12-15
Volume
14
Issue
12
Pages
605
ISSN
  • 1911-8066 (ISSN-L)
  • 1911-8074
OpenAlex
W4200350896
Cited by
128
References
102
Citations by year
2026: 25 · 2025: 39 · 2024: 23 · 2023: 27 · 2022: 14
FWCI
14.71
Type
journal article
Language
en
Open access
Locations
  • Journal of risk and financial management (publishedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
  • Econstor (Econstor) (submittedVersion, cc-by)
Funders
This study is funded from the matching fund of U.T.P. Malaysia and Uhamka Indonesia 681 ((Grant No: 015ME0-174))
Topics
  • Social Sciences › Business, Management and Accounting › Marketing › Environmental Sustainability in Business
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Sustainability and Innovation in Business
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
Keywords
Sustainable Development Goals, firm financial performance, green innovation, green product innovation, green process innovation, green marketing, return on equity, return on assets, return on investment, corporate sustainability disclosure

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