Green innovation mediates between financial innovation and business sustainability? Proof in the mexican manufacturing industry

Abstract

<p>Recent studies have shown that the lack of environmental regulations in public administrations, the inability of employees to innovate knowledge and skills, the high price of green technologies, and the lack of environmental awareness in organizations are the biggest threats to the environmental and sustainable development. In this context, manufacturing companies in emerging markets should not only focus on achieving a higher level of business sustainability in economic and financial terms, but also pay attention to financial and green innovation, because they are important ways to achieve a green transformation of businesses, to improve sustainability, and to reduce carbon dioxide emissions. This study provides data on the adoption and repercussions of these activities on the sustainability of manufacturing companies in Mexico. The proposed research model was validated by applying partial least squares structural equation modeling (PLS-SEM) on a sample of 338 companies. The results of the study showed that the business sustainability of manufacturing companies significantly improved through the application of financial and green innovation. In addition, the results of the study showed that green innovation plays the role of a mediating variable in the relationship between financial innovation and corporate sustainable development.</p>