How do firms develop and financially benefit from green product innovation in a developing country? Roles of innovation orientation and green marketing innovation

Abstract

While previous research has explored the antecedents and outcomes of green product innovation, empirical evidence remains inconclusive. This study draws on the contingent natural resource–based view to conceptualize how innovation orientation enables firms to develop green product innovation to enhance financial performance, especially where they emphasize green marketing innovation. The study tests its hypotheses using primary survey data from 347 small and medium enterprises (SMEs) in Ghana and PROCESS as an analytical tool. The results suggest that innovation orientation has a positive relationship with green product innovation and that green product innovation mediates the relationship between innovation orientation and financial performance. Additional results indicate that green product innovation contributes more to financial performance under increasing levels of green marketing innovation. The article sheds new light on how firms can combine innovation orientation, green product innovation, and green marketing innovation to boost financial performance in a developing country.