The Effects of Green Innovations in Organizations: Influence of Stakeholders

Abstract

Organizations moving towards adopting sustainable business development has become a necessity. As more and more stakeholders increasingly show interest in pollution and environmental degradation and the major impacts on the economic activities of organizations, it has become a necessity for organizations to move towards adopting sustainable business development. To achieve this goal, organizations need to invest in green innovations (GIs). Therefore, this paper examines the important influence of internal and external stakeholders on organizations that choose to pursue sustainable development with the help of implementing green innovations. It has certain theoretical and practical implications, but the following problems exist: (a) the usage of energy has increased in recent years and further creates a warning sign that precautionary measures need to be taken soon, and if not, the situation will impact the environment and organizations’ sustainable performance; (b) stakeholders’ raise concerns about pollution and environmental deterioration and urge industrialists to incorporate green innovation into all aspects of production and processes. A positivist research paradigm is applied, and the hypotheses will be tested using Structural Equation Modelling (SEM). This study analyzes how green innovation interacts with the linkage between stakeholders and organizational sustainable performance. The contribution hopes to benefit the growth of the economy, promote a cleaner environment, and enhance the wellbeing of the country. This study will further help to enlighten the importance of embracing green innovation in industries to policy makers and manufacturers, which is currently lacking. This initiative is in line with Malaysia’s 12th plan, which aims to promote green innovation to boost the Gross Domestic Product (GDP) and push the country above the high-income barrier.

Eco‐innovation and environmental performance: Insights from Spanish wine companies

“…The use of stakeholder theory to analyze the influence of internal and external stakeholders on the likelihood of adopting environmental practices has grown exponentially in the last decade (Hazarika & Zhang, 2019). The literature has traditionally posited stakeholder pressure as one of the main drivers of companies reducing their impact on the environment (Journeault et al 2021;Konadu et al 2020;Jayaraman et al 2023). Authors such as Singh et al (2022) and Durugbo and Amankwah-Amoah (2019) provide empirical evidence of the impact of stakeholders on environmental behavior.…”

From environmental sustainability practices to green innovations: Evidence from small and medium‐sized manufacturing companies

“…A green organizational innovation (GOI) concerns the implementation of an organizational method oriented towards environmentally sustainable practices along the business practices of the companies, along with their external relations and in the organization of the workplace itself (Ahmed et al, 2023; Bataineh et al, 2023; Jayaraman et al, 2023). It consists of creating a competitive strategy based on innovation with the combination of green innovation in various company areas, such as green performance innovation, green market innovation, and green social innovation (Ogbeibu et al, 2021; Soewarno et al, 2019; Song & Yu, 2018).…”

Russian Companies’ Motivations for Making Green Investments

“…Researchers revealed the relationship of managerial consciousness and social responsibility of enterprise management with green investment decisions. Another force that influences managers' motivation to make green investment decisions is considered to be stakeholders (Jayaraman et al 2023). They are increasingly interested in the green agenda and are able to have a serious impact on the economic performance of companies, forcing them to make certain strategic decisions.…”