ADC. Suma de Negocios · 2025

Navigating sustainability: The impact of green innovation strategies on firm performance

This study examines the impacts of green innovation strategies—product, process, and service—on firm performance and the moderating roles of supply chain risk, stakeholder engagement, and managerial commitment to sustainability initiatives. The study adopted a quantitative method with PLS-SEM using SmartPLS. Data were obtained from 468 companies across different industries such as retail, health care, education, finance, and technology, stratified for representation. Path analysis and reliability statistics tested our hypothesis. Results show Green product (β = 0.432, p < 0.001), process (β = 0.356, p < 0.001), and service innovation (β = 0.290, p < 0.005) were found to positively influence firm perfor mance. Supply chain risk has a negative effect on firm performance (coefficient = -0.215, p < 0.003). However, stakeholder engagement (coefficient = 0.412, p < 0.000) and managerial commitment (path coefficient = 0.378, p < 0.000) have a positive influence. The R-squared of 0.682 shows that these variables explain 68.2% of the variance in firm performance.