The Impact of Green Innovation on Financial Performance: The Moderating Effect of Green Organisation Culture

Authors

Jaafer Mohammed Al-Mesaiadeen, Environment and Sustainable Development Program, College of Sciences, University of Bahrain (UOB), P.O. Box 32038, Kingdom of BahrainFollow
Mehdi Mili, Economic and Finance Department, College of Business Administration, University of Bahrain (UOB), P.O. Box 32038, Kingdom of BahrainFollow
Ghassan Abu AL-Soud, Banking and Finance Department, Business College, Bahrain polytechnic, Isa Town, PO Box 33349, Kingdom of BahrainFollow

Abstract

Several studies found a direct relationship between Green Innovation (GI) and financial performance in Bahrain. This is an excellent result as it means the incentive within the Bahraini business sector to consider environmental issues in their processes and products is a built-in motivation. After proving this direct impact on financial performance, there was a need to test factors that can enhance this link. This study added to the literature the role of Green organisational culture (GOC) in enhancing the impact of GI on financial performance. The study found a positive moderating impact of GOC on the relationship between GI and Financial performance. When employees share environmental ideals, attitudes, and behaviours, a green culture emerges, promoting environmental awareness. This research highlights real-world examples to illustrate critical ideas for implementing environmental measures in organisations. One way to accomplish this is by creating a more environmentally friendly workplace and educating employees on the relevance of environmental issues. Natural resource preservation should also be a top priority for businesses. It is also possible for businesses to foster employees intrinsic drive to participate in green activities and keep their GI levels up through internal campaigns to create a green culture.

Recommended Citation

Mohammed Al-Mesaiadeen, Jaafer; Mili, Mehdi; and Abu AL-Soud, Ghassan (2023) "The Impact of Green Innovation on Financial Performance: The Moderating Effect of Green Organisation Culture," Information Sciences Letters: Vol. 12 : Iss. 4 , PP -.
Available at: https://digitalcommons.aaru.edu.jo/isl/vol12/iss4/46