Tags:ESG practices, Green Innovation, Process Innovation, Product Innovation and SMEs
Abstract:
Although extensive studies have focused on the impact of different drivers and factors on green innovation, However, few studies have conducted to investigate that how the ESG could influ-ence the green innovation in small and medium enterprises (SMEs). Therefore, the purpose of this study is to predict the effect of environment, social and governance (ESG) on green innova-tion. In this study, green innovation is segmented into two dimensions which are sustainable product innovation and sustainable process innovation. The data collected through a question-naire-based survey from medium-levels IT firms and this study used an artificial neural network approach for analysis. The results indicate that social and political contribution (100%) is the most important factor to achieve the sustainable product innovation which followed by pollution & waste (91%) and emission reduction (49%). In addition, this study shows that pollution & waste is the most important factor to achieve the sustainable process innovation which followed by anti-competitive behavior (45%) and emission reduction (35%). The findings of this paper should be useful for manager in SMEs which legitimize them to employ the ESG practices to enhance the green innovation.
Predicting the Effect of Environment, Social & Gov-Ernance on Green Innovation in Industry 4.0: an Arti-Ficial Neural Network Approach