The Mediating of Green Product Innovation on the Effect of Accounting Capability and Performance Financial of MSMEs in the New Normal Era

Purpose This study aims to investigate the interactions between lean production, internal green practices, green product innovation and sustainable performance metrics. The study further looks at the mediation effect of internal green practices and green product innovation between lean production and sustainable performance dimensions. Design/methodology/approach The questionnaire was used to glean data from 209 manufacturing firms. All the hypothesized relationships were processed by using partial least square-structural equation modelling. Findings The results suggest that lean production significantly leads to the implementation of internal green practices and the production of quality products with eco-oriented features that meet customers’ needs. Further, while lean production and internal green practices were found to significantly influence sustainability performance, green product innovation significantly influences only financial performance. Besides, the mediation analysis shows that internal green practices mediate the relationship between lean production and sustainable performance dimensions but green product innovation mediates the relationship between lean production and financial performance only. Research limitations/implications The study is limited to firms from Ghana, a developing country; hence, the results cannot be imported to reflect other geographical contexts. Practical implications The results of the study provide sufficient justifications for managers, (especially Ghanaian managers and those from other similar environs) to commit their financial resources towards implementing lean production and internal green practices so as to achieve sustainability excellence. Originality/value This study magnifies and provides new insight on lean and green literature by developing a comprehensive research model that concurrently tests the direct and indirect effects between lean production, internal green practices, green product innovation and sustainable performance dimensions.

Download Full-text

Green Product Innovation and Financial Resource Availability

Global Perspectives on Green Business Administration and Sustainable Supply Chain Management - Advances in Logistics, Operations, and Management Science ◽

10.4018/978-1-7998-2173-1.ch006 ◽

2020 ◽

pp. 111-133

Author(s):

Haroon ur Rashid Khan ◽

Zubair Rashid Khan

Keyword(s):

Resource Availability ◽

Product Innovation ◽

Budget Constraint ◽

Financial Resource ◽

Revealed Preferences ◽

Green Product ◽

Green Product Innovation ◽

Experimental Approaches ◽

The One ◽

Multiple Actors

There is dire and critical need to deeply understand green consumers, given the implications for marketers to comprehend and communicate green buying patterns on the one hand, and to design and strategize both product range and motivation and financing available to develop them on the other hand. The chapter is built on theory Rational Choice and Revealed preferences Theory, while extending using experimental approaches involving multi actors' model. The multiple actors included consumer with their preferred order of choices, entrepreneurs with their preferences, and financiers with their preferred order, under the budget constraint. This chapter interacts with practical aspects of green product innovation behavior in general, and advances research with a focus on specific behaviors, highly desired in this field investigating the rise of green purchases. Globally, consumers are increasingly acquiring green products, and this study indicates to an improved understanding of the decision-making process of consumers' green product.

Download Full-text