The Influence of Green Product Innovation, Green Process Innovation, and End-of-Line Management Innovation on Sustainability Performance Dimensions

Authors

Quality Management Research Group, University of Isfahan, Iran 1 , Operations Research, Tarbiat Modares University, Tehran, Iran 2
“crossref”/
Views: 39  
Downloads: 16  

Main Article Content

Abstract

Purpose- Sustainability performance (SP) boosts competitive advantage and benefits the environment and society. The present study analyzes the impact of green technology innovation (GTI) dimensions, namely green product innovation (GPtI), green process innovation (GPsI), and end-of-line innovation management (ELIM), on SP dimensions, namely economic performance (EcP), environmental performance (EnP), and social performance (SoP).
Design/Methodology- A questionnaire instrument was developed and administered to a sample of 145 small and medium-sized enterprises (SMEs) located in the Tehran province of Iran. The data collected were analyzed using PLS-SEM.
Findings- The data analysis results showed that GPtI and GPsI significantly influence EcP, EnP, and SoP. Furthermore, the findings indicate that while ELIM positively impacts EnP and SoP, it does not exert any influence on EcP.
Practical Implications- This research highlights the significance of GTI in enhancing SP, providing practical implications for SMEs to adopt eco-friendly practices, thereby improving operational efficiency, reducing environmental impact, and fostering competitive advantage in the market.

Article Details

Masoudi, E., & Emamiyan, S. A. . (2025). The Influence of Green Product Innovation, Green Process Innovation, and End-of-Line Management Innovation on Sustainability Performance Dimensions. SEISENSE Journal of Management, 8(1), 59-75. https://doi.org/10.33215/mxs5kw74
Research Articles

Copyright (c) 2025 Ehsan Masoudi, Seyyed Amirhossein Emamiyan

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Data supporting the findings of this study are available from the corresponding author (E.M) upon reasonable request.

Aldás, J. (2016). Modelización Estructural con PLS-SEM: Constructos de Segundo Orden, ADD Editorial, Madrid.

Ali, S. S., Kaur, R. & Khan, S. (2023). Evaluating sustainability initiatives in warehouse for measuring sustainability performance: an emerging economy perspective. Annals of Operations Research, 324(1), 461-500. https://doi.org/10.1007/s10479-021-04454-w

Antwi-Boateng, C., Mensah, H. K. & Asumah, S. (2023). Eco-intellectual capital and sustainability performance of SMEs: The moderating effect of eco-dynamic capability. Cogent Business & Management, 10(3), 2258614. https://doi.org/10.1080/23311975.2023.2258614

Asad, M., Majali, T. E., Aledeinat, M., Abdelkarim Almajali, D., & Akhorshaideh, A. H. O. (2023). Green entrepreneurial orientation for enhancing SMEs financial and environmental performance: Synergetic moderation of green technology dynamism and knowledge transfer and integration. Cogent Business & Management, 10(3), 2278842. https://doi.org/10.1080/23311975.2023.2278842

Bagozzi, R. P. & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74-94. https://doi.org/10.1007/BF02723327

Braun, E., & Wield, D. (1994). Regulation as a means for the social control of technology. Technology Analysis & Strategic Management, 6(3), 259-272. https://doi.org/10.1080/09537329408524171

Caldera, H. T. S., Desha, C., & Dawes, L. (2018). Exploring the characteristics of sustainable business practice in small and medium-sized enterprises: Experiences from the Australian manufacturing industry. Journal of Cleaner Production, 177, 338-349. https://doi.org/10.1016/j.jclepro.2017.12.265

Cheng, C., Ahmad, S. F., Irshad, M., Alsanie, G., Khan, Y., Ahmad, A. Y. B., & Aleemi, A. R. (2023). Impact of green process innovation and productivity on sustainability: The moderating role of environmental awareness. Sustainability, 15(17), 12945. https://doi.org/10.3390/su151712945

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.

Chin, W. W. (2010). How to write up and report PLS analyses. In Handbook of Partial Least Squares. Springer, Berlin, Heidelberg, 655-690.

Contini, G., & Peruzzini, M. (2022). Sustainability and industry 4.0: definition of a set of key performance indicators for manufacturing companies. Sustainability, 14(17), 11004. https://doi.org/10.3390/su14171100

De Medeiros, J. F., Garlet, T. B., Ribeiro, J. L. D., & Cortimiglia, M. N. (2022). Success factors for environmentally sustainable product innovation: An updated review. Journal of Cleaner Production, 345, 131039. https://doi.org/10.1016/j.jclepro.2022.131039

Denu, M. K., Bentley, Y., & Duan, Y. (2023). Social sustainability performance: Developing and validating measures in the context of emerging African economies. Journal of Cleaner Production, 412, 137391. https://doi.org/10.1016/j.jclepro.2023.137391

Dey, P. K., Petridis, N. E., Petridis, K., Malesios, C., Nixon, J. D., & Ghosh, S. K. (2018). Environmental management and corporate social responsibility practices of small and medium-sized enterprises. Journal of cleaner production, 195, 687-702. https://doi.org/10.1016/j.jclepro.2018.05.201

Fatimah, Y. A., Kannan, D., Govindan, K. & Hasibuan, Z. A. (2023). Circular economy e-business model portfolio development for e-business applications: Impacts on ESG and sustainability performance. Journal of Cleaner Production, 415, 137528. https://doi.org/10.1016/j.jclepro.2023.137528

Feng, Y., Wang, X. & Liang, Z. (2021). How does environmental information disclosure affect economic development and haze pollution in Chinese cities? The mediating role of green technology innovation. Science of the Total Environment, 775, 145811. https://doi.org/10.1016/j.scitotenv.2021.145811

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139-152. https://doi.org/10.2753/MTP1069-6679190202

Hair, J.F., Anderson, R.E., Tatham,R. L., & Black, W. C. (2010). Multivariate data analysis (7th ed). New Jersey: Prentice Hall.

Hair, J.F., Hult, G.T.M., Ringle, C.M. & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), Sage, Thousand Oaks, CA.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43, 115-135. https://doi.org/10.1007/s11747-014-0403-8

Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In New challenges to international marketing (Vol. 20, pp. 277-319). Emerald Group Publishing Limited. https://doi.org/10.1108/S1474-7979(2009)0000020014

Inyang, B. J. (2013). Defining the role engagement of small and medium-sized enterprises (SMEs) in corporate social responsibility (CSR). International business research, 6(5), 123. http://dx.doi.org/10.5539/ibr.v6n5p123

Jiang, Q., Liu, Z., Liu, W., Li, T., Cong, W., Zhang, H., & Shi, J. (2018). A principal component analysis based three-dimensional sustainability assessment model to evaluate corporate sustainable performance. Journal of Cleaner Production, 187, 625-637. https://doi.org/10.1016/j.jclepro.2018.03.255

Kam‐Sing Wong, S. (2012). The influence of green product competitiveness on the success of green product innovation: Empirical evidence from the Chinese electrical and electronics industry. European Journal of Innovation Management, 15(4), 468-490. https://doi.org/10.1108/14601061211272385

Karia, N., & Davadas Michael, R. C. (2022). Environmental Practices That Have Positive Impacts on Social Performance: An Empirical Study of Malaysian Firms. Sustainability, 14(7), 4032. https://doi.org/10.3390/su14074032

Khan, S. A. R., Ahmad, Z., Sheikh, A. A., & Yu, Z. (2023). Green technology adoption paving the way toward sustainable performance in circular economy: a case of Pakistani small and medium enterprises. International Journal of Innovation Science, (ahead-of-print). http://dx.doi.org/10.1108/IJIS-10-2022-0199

Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration (ijec), 11(4), 1-10. https://doi.org/10.4018/ijec.2015100101

López‐Arceiz, F. J., Del Río, C., & Bellostas, A. J. (2020). Sustainability performance indicators: Definition, interaction, and influence of contextual characteristics. Corporate Social Responsibility and Environmental Management, 27(6), 2615-2630. https://doi.org/10.1002/csr.1986

Malesios, C., De, D., Moursellas, A., Dey, P. K., & Evangelinos, K. (2021). Sustainability performance analysis of small and medium sized enterprises: Criteria, methods and framework. Socio-Economic Planning Sciences, 75, 100993. https://doi.org/10.1016/j.seps.2020.100993

Mengistu, A. T., & Panizzolo, R. (2023). Metrics for measuring industrial sustainability performance in small and medium-sized enterprises. International Journal of Productivity and Performance Management, (ahead-of-print). https://doi.org/10.1108/IJPPM-04-2022-0200

Moradi, M., & Miralmasi, A. (2020). Pragmatic research method. School of Quantitative and Qualitative Research. Retrieved from https://analysisacademy.com

Moshood, T. D., Nawanir, G., Mahmud, F., Mohamad, F., Ahmad, M. H., AbdulGhani, A., & Kumar, S. (2022). Green product innovation: A means towards achieving global sustainable product within biodegradable plastic industry. Journal of Cleaner Production, 363, 132506. https://doi.org/10.1016/j.jclepro.2022.132506

Mukhtar, B., Shad, M. K. & Lai, F. W. (2024). Fostering sustainability performance in the Malaysian manufacturing companies: the role of green technology innovation and innovation capabilities. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-07-2023-0468

Mukhtar, B., Shad, M. K., Won, L. F., Waqas, A. & Mukhtar, Z. (2023). Role of green technology innovation to promote sustainability performance in Malaysian manufacturing solar PV industry: A conceptual framework. Platform: A Journal of Management and Humanities, 6(1), 36-46. https://doi.org/10.61762/pjmhvol6iss1art22890

Nosratabadi, S., Mosavi, A., Shamshirband, S., Zavadskas, E. K., Rakotonirainy, A., & Chau, K. W. (2019). Sustainable business models: A review. Sustainability, 11(6), 1663. https://doi.org/10.3390/su11061663

Onileowo, T. T., Muharam, F. M., Ramily, M. K., & Khatib, S. F. (2021). The Nexus between innovation and business competitive advantage: A conceptual study. Universal Journal of Accounting and Finance, 9(3), 352-361. https://doi.org/10.13189/ujaf.2021.090309

Opoku-Mensah, E., Chun, W., Ofori, E. K., Ampofo, S. A., Chen, W., & Appiah-Otoo, I. (2024). Revisiting the role of ICT and green institutional governance in environmental sustainability and proposing an ecological footprint mitigation pathway using a volatility-driven model. Journal of Cleaner Production, 434, 139824. https://doi.org/10.1016/j.jclepro.2023.139824

Ortiz-Avram, D., Domnanovich, J., Kronenberg, C., & Scholz, M. (2018). Exploring the integration of corporate social responsibility into the strategies of small-and medium-sized enterprises: A systematic literature review. Journal of cleaner production, 201, 254-271. https://doi.org/10.1016/j.jclepro.2018.08.011

Peng, Y., Fan, Y., & Liang, Y. (2021). A green technological innovation efficiency evaluation of technology-based smes based on the undesirable sbm and the malmquist index: A case of Hebei province in China. Sustainability, 13(19), 11079. https://doi.org/10.3390/su131911079

Rezaee, Z. (2016). Business sustainability research: A theoretical and integrated perspective. Journal of Accounting literature, 36(1), 48-64. https://doi.org/10.1016/j.acclit.2016.05.003

Romana, A. F., & Gestoso, C. (2023). Economic performance and the implementation of lean management model. Economics and Finance, 11(1), 13-23. http://hdl.handle.net/10400.5/30409

Sdrolia, E., & Zarotiadis, G. (2019). A comprehensive review for green product term: From definition to evaluation. Journal of Economic Surveys, 33(1), 150-178. https://doi.org/10.1111/joes.12268

Szennay, Á., Szigeti, C., Beke, J., & Radácsi, L. (2021). Ecological footprint as an indicator of corporate environmental performance—Empirical evidence from hungarian SMEs. Sustainability, 13(2), 1000. https://doi.org/10.3390/su13021000

Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M. & Lauro, C. (2005). PLS path modeling. Computational Statistics & Data Analysis, 48(1)159-205. https://doi.org/10.1016/j.csda.2004.03.005

Wagner, M. (2010). The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects. Ecological economics, 69(7), 1553-1560. https://doi.org/10.1016/j.ecolecon.2010.02.017

Wang, C., Du, D., Liu, T., Zhu, Y., Yang, D., Huang, Y., & Meng, F. (2024). Impact of Green Technology Innovation on Green Economy: Evidence from China. Sustainability, 16(19), 8557. https://doi.org/10.3390/su16198557

Wang, M., He, Y., Zhou, J. & Ren, K. (2022). Evaluating the effect of Chinese environmental regulation on corporate sustainability performance: the mediating role of green technology innovation. International Journal of Environmental Research and Public Health, 19(11), 6882. https://doi.org/10.3390/ijerph19116882

Wang, S., Wen, J., Yang, X., Deng, P., & Wang, N. (2023). Impacts of digital trade restrictiveness on green technology innovation: an empirical analysis. Emerging Markets Finance and Trade, 59(7), 2079-2101. https://doi.org/10.1080/1540496X.2023.2172321

Xie, X., Huo, J., & Zou, H. (2019). Green process innovation, green product innovation, and corporate financial performance: A content analysis method. Journal of business research, 101, 697-706. https://doi.org/10.1016/j.jbusres.2019.01.010

Xie, X., Zhu, Q., & Wang, R. (2019). Turning green subsidies into sustainability: How green process innovation improves firms' green image. Business Strategy and the Environment, 28(7), 1416-1433. https://doi.org/10.1002/bse.2323

Yang, Y., Jiang, Y., Chen, H. & Xu, Z. (2023). Linking relation-specific investments and sustainability performance: the mediating role of supply chain learning. International Journal of Operations & Production Management, 43(8), 1329-1356. https://doi.org/10.1108/IJOPM-07-2022-0463

Ye, M., Hao, F., Shahzad, M. & Kamran, H. W. (2022). How green organizational strategy and environmental CSR affect organizational sustainable performance through green technology innovation amid Covid-19. Frontiers in Environmental Science, 10, 959260. https://doi.org/10.3390/su16010277

Yu, Y., Hu, W., Dong, C., Gu, X., & Obrenovic, B. (2023). E-commerce development and green technology innovation: Impact mechanism and the spatial spillover effect. Sustainability, 15(17), 12988. https://doi.org/10.3390/su151712988

Zhang, X., & Tang, Z. (2022). Construction of computer model for enterprise green innovation by PSO-BPNN algorithm and its impact on economic performance. Plos one, 17(1), e0262963. https://doi.org/10.1371/journal.pone.0262963

Zhou, L. & Dai, Y. (2023). Green Production Management and Innovation Nexus: Evidence from Technology-Based SMEs of China. Sustainability, 15(6), 4710. https://doi.org/10.3390/su15064710

Zuo, G. (2023). The Influence and Mechanism Analysis of Environmental Regulation on Green Technology Innovation of Enterprises. Frontiers in Business, Economics and Management, 12(3), 229-234. https://doi.org/10.54097/8ryqz9ai