Green product innovation, resource commitment, environmental dynamism and performance of agricultural small and medium enterprises

Abstract

The purpose of this study was to look into the relationships between green product innovation initiatives and firm performance of Malaysian Small and Medium Enterprises (SMEs) in the agriculture sector. The moderating role of resource commitment and environmental dynamism on the relationship between green product innovation initiatives and firm performance was also investigated in this study. Responds were obtained from Malaysian SMEs Managers. The information gathered was analyzed using the Statistical Package for the Social Sciences (SPSS) and Partial Least Squares-Structural Equation Modeling (PLS-SEM). This study found a positive relationship between green product innovation and firm performance. The findings revealed that environmental dynamism and resource commitment moderated the relationship between green product innovations and firm performance. This study is significant, particularly for the owners/managers of SMEs in Malaysia's agriculture sector. This research increased understanding and awareness of green product initiatives. This study also demonstrated that SMEs can improve their overall performance through better market position, reduce production costs, improve recycling, reduce waste, and establish a positive ecological and environmental reputation.