scholarly journals The role of financial resources in SMEs' financial and environmental performance; the mediating role of green innovation

Green Finance ◽  
2021 ◽  
Vol 4 (1) ◽  
pp. 36-53
Author(s):  
Rizwan Ullah Khan ◽  
◽  
Hina Arif ◽  
Noor E Sahar ◽  
Arif Ali ◽  
...  
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Manufacturing Firms ◽  
Financial Resources ◽  
Green Innovation ◽  
Mediating Role ◽  
Green Practices ◽  
The Government ◽  
The Relationship

<abstract> <p>The current study investigates the influence of financial resources on environmental and financial performance with the mediating role of green practices (innovation) in manufacturing firms of the emerging economy, Pakistan. The research model and its proposed hypothesis was using 294 manufacturing firms' samples, for fruitful insights, the hypothesis was tested through a structured equation model using Smart PLS 3. Our results exhibited a positive and significant impact of financial resources on financial performance but not on environmental performance. However, green innovation fully mediates the relationship between financial resources and financial performance, while partially mediate the relationship between financial resources and environmental performance. Considering our insight, we suggest to the government that financially support the SMEs sector because they have a lack of tangible and intangible resources due to small size, and to easily adapt the green practices.</p> </abstract>

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salim Chouaibi ◽  
Jamel Chouaibi ◽  
Matteo Rossi
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediation Effect ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Thomson Reuters ◽  
The Board Of Directors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.Design/methodology/approachTo test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.FindingsThe results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.Practical implicationsThe findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.Originality/valueThis study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

scholarly journals EFFECTS OF ORGANISATIONAL STRUCTURE ON SOCIAL VALUE: MEDIATING ROLE OF FINANCIAL PERFORMANCE

2018 ◽  
Vol 17 (3) ◽  
pp. 131
Author(s):  
NUR AIMA SHAFIE ◽  
ZURAIDAH MOHD SANUSI ◽  
RAZANA JUHAIDA JOHARI ◽  
WIWIK UTAMI ◽  
AZIATUL WAZNAH GHAZALI
Keyword(s):  
Financial Performance ◽  
Social Enterprise ◽  
Social Value ◽  
Organisational Structure ◽  
Mediating Role ◽  
The Social ◽  
The Government ◽  
The Impact ◽  
The Relationship

Social enterprise (SE) is a hybrid organisation, which combine two different goals in their mission and vision. In an attempt to sustain their operation, social enterprise must ensure that both mission (social and financial) is equally balanced and achievable. The existence of SE is to fill the gap leave behind by traditional profit organisation, non-profit organisations (NPOs) and the government. The aim is to positively impact the social, cultural and environmental issues through their unique business model. Their uniqueness, while can benefit the community and society as a whole is prone to fraud and misuse of funds which would eventually affect the survival of SE. The issues are originated from weak governance particularly the structure of their organisations. Hence, this study is aims to examine the relationship between the organisational structure, financial performance and social value of SE in Malaysia. On the other hand, the study also aim to examine the mediating role of financial performance on the relationship between organisational structure and social value. Organisational structure is vital as carefully selected, well designed and well managed organisational structure will improve the impact of social enterprise on the society. This study is based on the 134 data obtained from the SE in Malaysia and registered as Company Limited by Guarantee (CLBG). The study found that, organisational structure and financial performance significantly influence the social value of SE. Furthermore, it was also found that financial performance indeed mediate the relationship between organisational structure and social value. It is hoped that the study can contribute to the improvement of performance of SE in Malaysia and as well as encourage the development of research in the area of SE.

scholarly journals Factors affecting the organizational performance of manufacturing firms

2017 ◽  
Vol 9 ◽  
pp. 184797901771262 ◽  
Author(s):  
Ahmad Adnan Al-Tit
Keyword(s):  
Organizational Performance ◽  
Measurement Instrument ◽  
Manufacturing Firms ◽  
Factors Affecting ◽  
Mediating Role ◽  
Values And Beliefs ◽  
The Individual ◽  
The Impact ◽  
The Relationship

Numerous studies have been conducted to explore the individual effects of organizational culture (OC) and supply chain management (SCM) practices on organizational performance (OP) in different settings. The aim of this study is to investigate the impact of OC and SCM on OP. The sample of the study consisted of 93 manufacturing firms in Jordan. Data were collected from employees and managers from different divisions using a reliable and valid measurement instrument. The findings confirm that both OC and SCM practices significantly predict OP. The current study is significant in reliably testing the relationship between SCM practices and OP; however, it is necessary to consider cultural assumptions, values and beliefs as the impact of OC on OP is greater than the impact of SCM practices. Based on the results, future studies should consider the moderating and mediating role of OC on the relationship between SCM practices and OP.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

Unpacking the black box

2020 ◽  
Vol 21 (6) ◽  
pp. 809-834 ◽  
Author(s):  
Kaveh Asiaei ◽  
Omid Barani ◽  
Nick Bontis ◽  
Maryam Arabahmadi
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Content Type ◽  
Knowledge Resources ◽  
Mediating Role ◽  
Strategic Resources ◽  
Structural Capital ◽  
Resource Orchestration ◽  
The Relationship

PurposeDrawing largely upon resource orchestration theory, this study aims to contribute to the intellectual capital (IC) literature by testing a model where intrapreneurship mobilizes resources to trigger firm performance. More specifically, this study investigates how intrapreneurship mediates the relationship between IC and financial performance.Design/methodology/approachData was collected using a structured questionnaire administered to a target sample of publicly-listed Iranian companies across a variety of sectors. Archival data supplemented the survey findings to capture financial performance. A structural equation modelling (SEM) approach, using LISREL, was used to assess the measurement and structural models.FindingsThe results supported the hypothesized associations among IC, intrapreneurship, and financial performance. Furthermore, the findings provided some evidence that IC is indirectly related to financial performance through the mediating role of intrapreneurship.Research limitations/implicationsThe focus on Iranian publicly listed companies limits the generalizability of results.Practical implicationsManagers need to align the company's strategic resources with other competencies such as intrapreneurial initiatives. The synthesis of knowledge resources and intrapreneurship can help organization to better organize, synchronize and support – i.e. “orchestrate” – their human and structural capital, improving the firm's social and innovation capital and eventually enhancing overall performance.Originality/valueTo our knowledge, this is the first study ever to explore the mediating role of intrapreneurship in the relationship between IC and financial performance from the resource orchestration lens.

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