Promoting sustainability through green innovation adoption: a case of manufacturing industry

Assessing the drivers and solutions of green innovation influencing the adoption of renewable energy technologies

The degradation of the environment in China is accelerating along with economic expansion. Adoption of renewable energy technologies (RETs) is crucial for reducing the adverse impacts of economic growth on the environment and fostering sustainable development. This study attempts to identify the green innovation drivers and sub-drivers that affect the adoption of RETs in China and provide solutions for boosting their implementation. The study prioritized the drivers, sub-drivers, and strategies of green innovation by combining the Analytical Hierarchy Process (AHP) and Simple Additive Weighting (SAW) methods. In the study, the triple bottom line (TBL) approach has been used to determine the economic, societal, and environmental driving forces. The study also suggests strategies for encouraging the use of RETs. The results of the AHP method revealed that economics is the most crucial driver, with a weight of 0.376, followed by environmental (0.332), and social (0.291) drivers. The findings of the SAW method indicated that government green innovation initiatives, consumer initiatives, and industry initiatives are the most significant strategies for deploying RETs in China. This study has important theoretical and practical ramifications for encouraging China to adopt RETs. The suggested approaches can help researchers, business professionals, and policymakers promote sustainable development in China.

The effect of green fiscal policy on green technological innovation: evidence from energy saving and emission reduction fiscal policy

The "National Comprehensive demonstration of Energy Saving and Emission Reduction Fiscal Policy" (ESER policy) is a green fiscal policy to facilitate China's green sustainable development. Green sustainable development is facilitated by green technological innovation. Thus, evaluating the influence of the ESER policy on green technological innovation is essential. This study employs the difference-in-differences model to assess the ESER policy effects. The findings suggest that the ESER policy facilitates green technological innovation, but the policy effect has inhibited green technology innovation in neighboring cities. Mechanism analysis indicates that this policy effect is realized through increasing scientific research investment intensity and promoting industrial structure upgrading. Heterogeneity analysis indicates that this policy is effective in facilitating green technological innovation when performed in eastern, non-old industrial base, non-resource-based, and high green innovation level cities. In addition, the ESER policy implemented in conjunction with innovation policy can be more effective in promoting green technological innovation. These results provide valuable insights for improving the ESER policy and offer helpful guidelines for green fiscal policymaking in other countries.

Nexus between corporate social responsibility and firm performance: a green innovation and environmental sustainability paradigm

Climate change concerns have become severe challenges in developing countries' sustainable development due to the immense usage of fossil fuels. The government has effectively employed green practices to solve these challenges in developing countries. This study explores how corporate social responsibility influences firm performance by analyzing the data collected from 650 respondents of manufacturing firms in a developing country, i.e., China. Structural equation modeling has been applied to analyze and investigate the proposed hypotheses. The results showed that corporate social responsibility does not directly affect the firm performance. In contrast, corporate social responsibility is positively related to green transformational leadership and green innovation, which improve firm performance. The results further indicated that green innovation and green transformational leadership significantly mediate the link between corporate social responsibility and firm performance. This study offers essential insights for managers and policymakers of manufacturing firms in managing corporate social responsibility, green innovation, and green transformational leadership when analyzing firm performance. It may aid general managers of major manufacturing firms in strengthening internal resources to improve the firm performance.

The moderating effect of liquidity on the relationship between sustainability and firms' specifics: Empirical evidence from indian manufacturing sector

The current study attempts to examine the moderating effect of liquidity on the relationship between firms' specific and sustainability expenses. The study is based on secondary data over a period from 2015 to 2021. The results are estimated using panel data with fixed-effect models. The results indicate that liquidity enhances and strengthens the ability of a company to spend more on environmental, social, and employee compensation sustainability expenses. In the same context, the results reveal that there is an insignificant moderation effect of liquidity with the financial performance of a company, indicating that the liquidity of companies with higher financial performance does not enhance and strength their ability to spend more on sustainability expenses. Further, the extent of liquidity in larger companies affects positively and significantly the level of employee compensation but not environmental and social spending. Finally, the findings show that greater leverage with less liquidity negatively affects the levels of sustainability spending. This study provides a unique contribution to the existing literature by introducing the moderating effect of liquidity on the relationship between firms' specific and sustainability expenditures. It highlights the direct effect of firms' specific determinants and the moderating effect of liquidity on three categories of sustainability expenses which are environmental expenses, social expenses, and employee compensations. Therefore, this research has valuable implications for company managers, financial analysts, policymakers, and other stakeholders.

Establishing a Green, Lean and Six Sigma implementation model for sustainable construction industry: an analysis of driving forces through ISM-MICMAC approach

Green Lean Six Sigma adoption (GLSA) is an emerging concept that enhances product quality, safety and the overall performance of the firms. Few studies attempted to explore and examine the DFs of GLSA towards creating a strong urge in the stakeholders for long-term economic, ecological and productivity advantages. Major 32 DFs were initially explored to fill this gap by conducting a literature review and semi-structured interviews with different experts. Then, using the Delphi method, 28 DFs pertinent to the construction industry of Pakistan were screened, and established a seven-stages structural model by employing the interpretive structural modeling (ISM) technique. Through Matriced' Impacts Croise's Multiplication Appliquee a UN Classement (MICMAC) method, the DFs were categorized into "autonomous," "dependent," and "linking" segments. The results signify that "energy efficiency," "government incentives," "waste minimization," "resources conservation and recycling," and "water efficiency" were the top five DFs for GLSA. Further, the comparison with other countries reveals that the most significant driving force, "government incentives," is substantial for GLSA in the emerging economy of Pakistan. This article enhances knowledge of significant DFs for GLSA, furnishing a considerable source for managers, professionals, and policymakers to encourage GLSA at a wider level.

Green transition in manufacturing: Dynamics and simulation

Under the dual background of global industrial value chain and low-carbon emission reduction, the green transformation and upgrading of the manufacturing industry is an important way to promote production and promote sustainable economic development. Considering that the green transformation of the manufacturing industry is a typical complex adaptation system, based on the intrinsic relationship between the dynamic theory and the green transformation of the manufacturing industry, this paper takes the endogenous variable of the transformation of manufacturing enterprises as the entry point, simulates the transformation of new and old dynamic energy of green transformation, and explores the mechanism of green transformation and upgrading of manufacturing industry and the conversion process. According to the model, it is concluded that the green transformation of manufacturing enterprises is the result of the multi-stage transformation of enterprises. In this process, the change inertia overcomes old dynamic inertia and promotes the new dynamic to gradually replace the old dynamic. At the end of the article, specific suggestions are given to promote the green transformation of manufacturing enterprises from the aspects of ideology, policy support, digital empowerment, financial service guarantee system and communication and cooperation.

Towards achieving the sustainable development goal 9: Analyzing the role of green innovation culture on market performance of Chinese SMEs

Green innovation culture is essential to the Chinese 14th five-year plan aligned with sustainable development goal 9. This study examines the relationship between green innovation culture and market performance of Chinese small and medium-sized enterprises (SMEs). We evaluated hypothesis by taking a sample of 564 SMEs employees in China through an online survey. The structural equation modelling (SEM) method is used to analyze data. The findings showed that green innovation culture positively influence product and marketing innovation. Similarly, marketing innovation positively affects product innovation and market performance. In addition, product innovation has a substantial effect on market performance. The outcomes of this study imply that SMEs in emerging economies should concentrate on green innovation culture to improve their market performance. In addition, the identification of study limitations and suggestions for further research are also addressed for all stakeholders involved with SMEs.

Multi-objective parameter optimization of CNC plane milling for sustainable manufacturing

Energy modeling and cutting parameter optimization of the machining process have been recognized as powerful and effective ways to save energy. However, in the actual machining process, technologists often use empirical methods to determine the final cutting parameters. Due to the lack of theoretical support and optimization tools, this method is difficult to fully consider the constraints of machine tool capability, cutting tool performance, and workpiece material, which affects the overall performance of the machine tool to give full play. To address this problem, a multi-objective parameter optimization method of computer numerical control (CNC) plane milling for sustainable manufacturing was proposed in this paper. More specifically, three tasks were carried out: (1) an accurate milling energy model considering transient processes such as spindle acceleration was established; (2) a multi-objective parameter optimization model of CNC plane milling was established with cutting parameters as optimization variables and considering various complex constraints; (3) by drawing 3D surface maps, the internal relationship between the cutting parameters and the optimization index was presented in detail and intuitively. Finally, a case study was carried out in the XHK-714F vertical machining center. The results showed that the processing efficiency is improved by 21.0%, the energy consumption is reduced by 15.3%, and the surface roughness is reduced by 5.5% through the optimization of cutting parameters, which verified the effectiveness and feasibility of the proposed model and method.

Sustainable construction through energy management practices: an integrated hierarchal framework of drivers in the construction sector

Reducing energy usage and promoting energy management practices remain hot issues in the construction sector. Construction firms are not interested to adopt energy conservation and management practices in their projects. Despite the successful integration of energy management practices in developed nations, their adaptability in developing countries, especially in Pakistan, is at a slow pace. Therefore, drivers to energy management practices need to be realized for its adoption. Based on this, the current study intends to evaluate the drivers of energy management practices adopted in the construction sector of Pakistan by using a four-stage methodology. Fuzzy Delphi method (FDM), interpretive structural modeling (ISM), and Matrice d'Impacts Croises Multiplication Appliques a un Classement (MICMAC) analysis were integrated with prioritizing essential drivers. Increased tax imposition on construction companies for energy usage and pollution contribution, promotion of investment subsidies for energy efficiency technologies, and increased enforcement of government rules and regulations regarding on-site energy management practices arose as significant drivers to adoption of energy management practices in the construction sector of Pakistan. These results will be helpful for policymakers to develop effective policies for integrating energy management practices in the construction sector. This study contributes significantly by developing a novel model of drivers affecting EMP adoption in the Pakistani construction sector. Further research might be expanded to other developing countries to validate current results.

Modeling Key Strategies for Reducing Socio-Economic and Health Crisis: Perspective from COVID-19 Pandemic

The pandemic outbreak has dramatically changed every sector and walk of life. Specifically, the developing countries with scarce resources are facing unprecedented crises that further jeopardize efforts to achieve sustainable life. Considering the case of a developing country, Pakistan, this study empirically identifies the most important strategies to reduce the socio-economic and health challenges during COVID-19. Initially, the study identified 14 key strategies from the prior literature. Later, these strategies were determined with the help of the interpretive structural modeling (ISM) approach through expert suggestions. The ISM model represents seven levels of pandemic containment strategies based on their significance level. The strategies existing at the top level of ISM model are the least important, while the strategies at the bottom of hierarchy levels are highly significant. Therefore, the study results demonstrated that "strong leadership and control" and "awareness on social media" play significant roles in reducing pandemic challenges, while "promoting online purchase behavior" and "online education" are the least important strategies in tackling pandemic crisis. This study will benefit government authorities and policymakers, enabling them to focus more on significant measures in battling this ongoing crisis.

Research on factors affecting serial entrepreneurial intention: An interpretive structure model

Serial entrepreneurship is a very common phenomenon in the world. Research on serial entrepreneurs is the core of understanding entrepreneurship and entrepreneurs, such as, why entrepreneurs insist on starting businesses many times? What affects the sustainability of entrepreneurship? Based on the interpretive structure model of systems engineering, this study constructs a hierarchical model of the factors affecting serial entrepreneurial intention, which proposed the basic conditions, key factors, and paths affecting serial entrepreneurial intention. Based on this, the hierarchical model of factors affecting serial entrepreneurial intention is also tested through a typical serial entrepreneurial case. The results show that: (1) there are 16 factors affecting serial entrepreneurial intention, and each factor plays a role at a specific level; (2) entrepreneurial expectations and identification and evaluation of opportunities are the key factors affecting serial entrepreneurial intention. We can improve the ability of the identification and evaluation of opportunities through entrepreneurial failure learning, and form reasonable entrepreneurial expectations; (3) entrepreneurial cognitive schema and behavioral addiction tendency directly affect entrepreneurs' identification and evaluation of opportunities; (4) demographic factors, financial conditions, environmental conditions, and entrepreneurial experience are the basic conditions that affect serial entrepreneurial intention indirectly through emotional perception and motivation factors.

Can green finance promote green innovation? The moderating effect of environmental regulation

Green finance has emerged as a main driving force for green development in which green innovation has served as the key approach. However, little is known about how green finance impacts green innovation performance. In this research, we empirically examined the hypotheses by fixed effect model with data of 30 provinces in China during 2008-2019. The result turns out that green finance has significantly positive effect on green innovation in all regions in China, and the effect is stronger in western and central regions than eastern region. Furthermore, we verified the effect of environmental regulations on green innovation, and the results show the effect is larger in eastern region than western and central regions. Additionally, with intense environmental regulations, the effect of green finance in promoting green innovation is enhanced in all regions. Our results thus contribute to unveil the mixed relationships among green finance, environmental regulations, and green innovation. Three policy recommendations for policymakers were also discussed, i.e., improving green finance system, staging green finance policies and regulations, and strengthening environmental regulations design to support green innovation.

Does the construction of ecological civilization institution system promote the green innovation of enterprises? A quasi-natural experiment based on China's national ecological civilization pilot zones

Enhancing green innovation is fundamental for constructing China's new ecological civilization era and participating in the global green industrial revolution. Therefore, it is necessary to improve the green innovation of the enterprises by enhancing the ecological civilization institution system. This study assesses the impact of China's ecological civilization institution system on green innovation, taking the establishment of the National Ecological Civilization Pilot Zone (NECPZ) as a quasi-natural experiment and the non-financial listed firms in China's A-share market from 2010 to 2019 as the research objects. A time-varying difference-in-differences approach is adopted to evaluate the effectiveness of the pilot policy. It is found that the pilot policy has promoted green innovation in the treatment group. The results are proven valid after a series of robustness tests. Heterogeneous impacts of the ownership and industry are also discussed, finding a more substantial effect on the non-state-owned enterprises and firms in non-heavy polluting industries. Furtherly, it is found that the policy implementation has suppressed firms' total factor productivity but has improved local environmental performance. Based on the above results, a series of policy recommendations are put forward.

Environmental innovation ambidexterity and customer relationship performance: evidence from the manufacturing industry in China

Cleaner production and pollution prevention are not only essential for enterprises to improve resource utilization efficiency and competitiveness, but also realistic requirements for enterprises to comply with green manufacturing policies and regulations. Many previous studies have investigated the impacts of environmental innovation on products and environmental performance, but few of them have explored the impact of environmental innovation on customer relationships. The main purpose of this study is to investigate the basic strategies to enhance customer relationship in the context of green development. Building upon the resource-based view, the dynamic capability perspective, and the upper echelons theory, this study develops a conceptual model focusing on the effects of environmental innovation ambidexterity (EIA) on customer relationship performance (CRP), the mediating effects of green product innovation (GPI), and the moderating role of top management's environmental awareness. The results of a survey of 285 high-tech manufacturing enterprises in China show that EIA has a positive effect on CRP. The results of the study also indicate that GPI mediates the relationship between EIA and CRP, and top management's environmental awareness moderates the impact of EIA on CRP. The results offer novel insights for suppliers to improve CRP, and provide theoretical guidance for high-tech manufacturing enterprises to effectively implement pollution prevention and GPI.

A Two-Step Fuzzy MCDM Method for Implementation of Sustainable Precision Manufacturing: Evidence from China

Despite that products of precision manufacturing are widely used in many fields involving the national economy, precision manufacturing processes are more unfriendly to the environment, resources and social development than general manufacturing. Hence, the implementation of sustainable precision manufacturing (SPM) is of great strategic significance. There is no literature identifying and ranking the drivers of implementation of SPM and the impact on sustainability owing to the application of advanced manufacturing technologies in SPM has not been explored. To resolve these problems, drivers of SPM are identified based on combined support of prior studies and six groups of experts consisting of 71 individuals from six precision manufacturing enterprises. The drivers are calculated and ranked by a two-step fuzzy MCDM method which integrated the fuzzy AHP (fuzzy analytic hierarchy process) and fuzzy TOPSIS (fuzzy technique for order of preference by similarity to ideal solution) algorithms. The evaluation of drivers is based on the basic principles of sustainable development (environmental criterion, social criterion and economic criterion). The paper concludes that technological innovation, government support and current legislation are the most critical drivers during SPM implementation. Additionally, the result of sensitivity verification of the proposed method conducted proves the robustness and correctness of the algorithm and results.

Promote Green Innovation in Manufacturing Enterprises in the Aspect of Government Subsidies in China

Green innovation is vital for manufacturing enterprises to achieve a balance between economic, environmental and social benefits. This paper empirically investigates the mechanisms of government subsidies, R&D investment and public participatory environmental regulation on green innovation in manufacturing enterprises, selecting a sample of 1308 manufacturing firms listed on Chinese A-shares from 2010–2019. The results show that government subsidies can significantly promote green innovation in manufacturing enterprises, with private enterprises being more pronounced. R&D investment plays a mediating role in green innovation in manufacturing enterprises, while public participatory environmental regulation has a negative impact. The moderating effect of public participatory environmental regulation on government subsidies is different on different green patents, with a more negative effect on green invention patents than on green utility model patents. Public participatory environmental regulation has a negative moderating effect on the green innovation of state-owned manufacturing enterprises while having no significant effect on private manufacturing enterprises.

Assessing the Barriers of Green Innovation Implementation: Evidence from the Vietnamese Manufacturing Sector

Sustainability concerns are rising as an interesting topic in both academia and industry. Many scholars revealed that green innovation is an excellent solution to enable organizations to achieve various benefits, such as enhancing their reputation and competitive advantages. Thus, this is the first study in Vietnam to consider the barriers to implementing green innovation. The research aims to identify the obstacles to green innovation practices in the Vietnamese manufacturing sector. The interpretive structural modeling (ISM) approach has been conducted to provide the interactions among the green innovation implementation barriers. The authors ground this study to bridge the theoretical and practical for green innovation practices in the Vietnam situation. Based on the experts’ perspectives, they proposed that Vietnamese manufacturers must deal with thirteen essential barriers to green innovation adoption. Further, six interaction levels and the MICMAC analysis clarified cross-relationships among challenges by evaluating the driving and dependence power. Indeed, the empirical results emphasized that financial capability constraints and lack of government support are the most decisive challenges. In contrast, market competition and uncertainty concern is the easiest obstacle to address by the Vietnamese manufacturers. Therefore, this study has provided some insightful contributions for the top managers and other scholars to consider.

Do Tournament Incentives Matter for CEOs to Be Environmentally Responsible? Evidence from Chinese Listed Companies

Relying on tournament theory and environmental management research, we examine how CEO tournament incentives induce top executives to invest more in green innovation. Using a sample of Chinese listed companies from 2010 to 2016, we find evidence that CEO tournament incentives are positively associated with green innovation. In addition, we find that a positive relationship between CEO tournament incentives and green innovation is stronger in state-owned enterprises than in non-state-owned enterprises. These results support tournament theory, which proposes that better incentives induce top executives’ efforts to win the tournament incentives, and such efforts are subject to fiercer competition among employees, which improves firms’ social and financial performance. Moreover, our findings have implications for policy makers and regulators who wish to enhance environmental legitimacy by providing tournament incentives to top executives.