Green innovation for a greener future: A meta-analysis of the impact on environmental performance

Abstract

The climate change and industrial pollution forced all enterprises to identify and adopt sustainable practices to enhance positive environmental effects and contribute to economic recovery. In this context, green innovation practices, concerning green product and process innovation in specific, emerged as promising solutions in natural resource management and mitigate the challenges therein. The effect of green innovation with all its dimensions on environmental performance, is assessed in many studies which have obtained different results. An attempt is made to synthesize the obtained quantitative results through a meta-analysis approach to determine the overall effect of green innovation (GI), green product innovation (GPRI), and green process innovation (GPCI) on environmental performance (EP). A meta-analysis conducted on the relevant 80 selected studies using the Comprehensive Meta-Analysis (CMA) software has revealed that, overall, GI has a positive and significant impact on EP. Additionally, the study found that both GPRI and GPCI have a positive and significant effect on EP. However, GPCIs have a greater magnitude of impact on EP compared to GPRIs. Furthermore, this study's findings suggest that the level of a country's development and the firm's sector type can act as moderating variables that enhance the impact of GPCI on EP. In addition to providing theoretical insights, this study offers practical policy recommendations to promote the adoption of green innovation practices among enterprises. These include establishing supportive environments, offering incentives, establishing regulations and standards, and expanding sustainable consumption to enhance the theoretical insights on this essential issue.