The Effect of Green Technology Innovation on Financial Performance in Manufacturing Companies Listed on the Indonesia Stock Exchange

Sri Nurdiyanti; Susi Sarumpaet

doi:10.61132/ijema.v1i3.154

Authors

Sri Nurdiyanti Lampung University
Susi Sarumpaet Lampung University

DOI:

https://doi.org/10.61132/ijema.v1i3.154

Keywords:

Green Technology Innovation, Financial Performance, Manufacturing Performance

Abstract

This study was conducted with the aim of examining the effect of green process innovation variables and green product innovation on the company's financial performance with total asset turnover variables as control variables. The dance used in this selection is the Resource Based View (RBV) theory and stakeholder theory. The population used in the study were manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2020-2022. Sampling was carried out using purposive sampling technique. The number of samples used in this assessment was 400 samples. The results of this study indicate that green process innovation and green product innovation have a positive and significant effect on corporate financial performance. The results of this study also found that the control variable of total asset turnover is able to control the effect of green process innovation and green product innovation on corporate financial performance.

Downloads

Download data is not yet available.

References

Amores-Salvadó, J., Castro, G. M. De, & Navas-López, J. E. (2014). Green corporate image: Moderating the connection between environmental product innovation and firm performance. Journal of Cleaner Production, 83, 356–365. https://doi.org/10.1016/j.jclepro.2014.07.059

Ar, I. M. (2012). The impact of green product innovation on firm performance and competitive capability: The moderating role of managerial environmental concern. Procedia - Social and Behavioral Sciences, 62, 854–864. https://doi.org/10.1016/j.sbspro.2012.09.144

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Chen, Y.-S., Lai, S.-B., & Wen, C. (2006). The influence of green innovation performance on corporate advantages in Taiwan. Journal of Business Ethics, 64(7), 311–339.

Freeman, E. R. (2010). Stakeholder management: Framework and philosophy. In Strategic Management: A Stakeholder Approach.

Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25 (Kesembilan). Badan Penerbit Universitas Diponegoro.

Kivimaa, P., & Kautto, P. (2010). Making or breaking environmental innovation?: Technological change and innovation markets in the pulp and paper industry. Management Research Review, 33(4), 289–305. https://doi.org/10.1108/01409171011030426

Lin, R.-J., Tan, K.-H., & Geng, Y. (2013). Market demand, green product innovation, and firm performance: Evidence from Vietnam motorcycle industry. Journal of Cleaner Production, 40, 101–107.

Lucas, M. T., & Noordewier, T. G. (2016). Environmental management practices and firm financial performance: The moderating effect of industry pollution-related factors. International Journal of Production Economics, 175, 24–34. https://doi.org/10.1016/j.ijpe.2016.02.003

Naz, F., Ijaz, F., & Naqvi, F. (2016). Financial performance of firms: Evidence from Pakistan cement industry. Journal of Teaching and Education, 5(1), 81–94. http://ssrn.com/abstract=2788357

Nisa, A. K. (2023). Effect of carbon emission disclosure on company value with environmental performance as moderating variable in non–financial companies listed on the Indonesian Stock Exchange. JEKAMI: Journal of Accounting, 3(1), 28–40. https://pusdig.web.id/akuntansi/article/view/126

Porter, M. E., & Van Der Linde, C. (2017). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 61–82. https://doi.org/10.1257/jep.9.4.97

Pratiwi, W. M. (2007). Akuntansi lingkungan sebagai strategi pengelolaan dan pengungkapan tanggungjawab lingkungan pada perusahaan manufaktur. Jurnal Mahasiswa Universitas Negeri Surabaya, 1–19.

Reinhardt, F. L. (1998). Environmental product differentiation: Implications for corporate strategy. California Management Review, 40(4), 45–73.

Russo, M. V., & Fourts, P. A. (n.d.). A resource-based perspective on corporate environmental performance and profitability.

Salvadó, J. A., de Castro, G. M., Navas López, J. E., & Verde, M. D. (2012). Environmental innovation and firm performance: A natural resource-based view. In Environmental Innovation and Firm Performance: A Natural Resource-Based View. https://doi.org/10.1057/9781137264046

Soylu, K., & Dumville, J. C. (2011). Design for environment: The greening of product and supply chain. Maritime Economics and Logistics, 13(1), 29–43. https://doi.org/10.1057/mel.2010.19

Wang, Y. Z., & Ahmad, S. (2024). Green process innovation, green product innovation, leverage, and corporate financial performance: Evidence from System GMM. Heliyon, 10(4), e25819. https://doi.org/10.1016/j.heliyon.2024.e25819

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

Ziegler, A., & Rennings, K. (2004). Determinants of environmental innovations in Germany: Do organizational measures matter? A discrete choice analysis at the firm level. ZEW Discussion Papers, 04, 1–37.