Introduction/objective: 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.

Methodology: the study adopted a quantitative method with PLS-SEM using SmartPLS. Data were obtained from 468 companies across different industries such as retail, healthcare, education, finance, and technology, stratified for representation. Path analysis and reliability statistics tested our hypothesis.

Results: 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 performance. 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. Conclusions: businesses have to invest in Green innovation at a short-term cost for long-term benefits such as market differentiation, efficiency, and loyalty. Stakeholder engagement and management commitment are important for integrating sustainability into business strategy. New technologies such as blockchain can also reduce supply chain risks. This study offers evidence of the double benefits of Green innovation, environmental sustainability and improved firm performance. It emphasises managerial dedication and stakeholder engagement in influencing sustainable conduct, which the existing literature does not address.

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Keywords:
Green innovation,
stakeholder engagement,
firm performance,
supply chain risk,
managerial commitment.

JEL Codes:
O30, O44, Q55, F18

05_RSN_16(35)_22_Navigating

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Dimensions

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