Systematic Literature Review on the Impact of Green Manufacturing Implementation on Corporate Sustainability Performance

Ezar Aufa  Thoriq; Abieta  Asyazilal; Andre Novia  Putranto; Retno  Hidayati; Wisnu  Mawardi

Authors

Ezar Aufa Thoriq Universitas Diponegoro
Abieta Asyazilal Universitas Diponegoro
Andre Novia Putranto Universitas Diponegoro
Retno Hidayati Universitas Diponegoro
Wisnu Mawardi Universitas Diponegoro

Keywords:

Green Manufacturing, Green Innovation, Corporate Sustainability Performance

Abstract

This literature review explores the impact of green manufacturing on corporate sustainability performance with green innovation as a mediator. Green manufacturing, characterized by environmentally friendly practices in production processes, has gained significant attention due to its potential to enhance sustainability outcomes. Corporate sustainability performance, encompassing economic, environmental, and social dimensions, is crucial for long-term organizational success and stakeholder value creation. Green innovation, including technological advancements and strategic initiatives towards sustainability, plays a vital role in driving positive environmental impacts and competitive advantages. Understanding the interplay between these factors is essential for firms seeking to integrate sustainable practices into their operations and achieve superior performance in a rapidly evolving global landscape.

Downloads

Download data is not yet available.

References

Afum, E., Agyabeng-Mensah, Y., Sun, Z., Frimpong, B., Kusi, L. Y., & Acquah, I. S. K. (2020). Exploring the link between green manufacturing, operational competitiveness, firm reputation and sustainable performance dimensions: a mediated approach. Journal of Manufacturing Technology Management, 31(7), 1417-1438.

Afum, E., Osei-Ahenkan, V. Y., Agyabeng-Mensah, Y., Owusu, J. A., Kusi, L. Y., & Ankomah, J. (2020). Green manufacturing practices and sustainable performance among Ghanaian manufacturing SMEs: the explanatory link of green supply chain integration. Management of Environmental Quality: An International Journal, 31(6), 1457-1475.

Al-Shammari, A. S., Alshammrei, S., Nawaz, N., & Tayyab, M. (2022). Green human resource management and sustainable performance with the mediating role of green innovation: a perspective of new technological era. Frontiers in Environmental Science, 10, 901235.

Boiral, O. &. (2012). Organizational Citizenship Behaviour for the Environment: Measurement and Validation. Journal of Business Ethics, 109(4), 431-445.

Chen, Y. S., & Chang, C. H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of business ethics, 116, 107-119.

Chen, Y. S., Lai, S. B., & Wen, C. T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of business ethics, 67, 331-339.

Cheng, C. C., & Shiu, E. C. (2012). Validation of a proposed instrument for measuring eco-innovation: An implementation perspective. Technovation, 32(6), 329-344.

Cheng, C. Y. (2014). The link between eco-innovation and business performance: a Taiwanese industry context. Journal of Cleaner Production, 64, 81-90.

Chiou, T.-Y. C. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and transportation review, 47, 822-836.

Cleff, T. &. (1999). Determinants of environmental product and process innovation. European Environment, 9, 191-201.

Dheeraj, N. a. (1992). An overview of green supply chain management in India. Research Journal of Recent Sciences , ISSN, 2277 (1992): 2502.

Dubey, R., Gunasekaran, A., & Ali, S. S. (2015). Exploring the relationship between leadership, operational practices, institutional pressures and environmental performance: A framework for green supply chain. International Journal of Production Economics, 160, 120-132.

Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business strategy and the environment, 11(2), 130-141.

Fernando, Y., Jabbour, C. J. C., & Wah, W. X. (2019). Pursuing green growth in technology firms through the connections between environmental innovation and sustainable business performance: does service capability matter?. Resources, conservation and recycling, 141, 8-20.

Fok, L., Zee, S., & Morgan, Y. C. T. (2022). Green practices and sustainability performance: the exploratory links of organizational culture and quality improvement practices. Journal of Manufacturing Technology Management, 33(5), 913-933.

Ghazilla, R. a.-R. (2015). Drivers and Barriers Analysis for Green Manufacturing Practices in Malaysian SMEs: A Preliminary Findings. Procedia CIRP, 26, 658–663.

Gul, R. F. ((2021b) ). Linkages between Market Orientation and Brand Performance with Positioning Strategies of Significant Fashion Apparels in Pakistan. Fash. Text, 8 (1), 1–19.

Huang, J. W., & Li, Y. H. (2017). Green innovation and performance: The view of organizational capability and social reciprocity. Journal of business ethics, 145, 309-324.

Huang, Y. a. (2021). Institutional pressure, firm’s green resources and green product innovation: evidence from Taiwan’s electrical and electronics sector. European Journal of Innovation Management, 0217.

Indriastuti, M., & Chariri, A. (2021). The role of green investment and corporate social responsibility investment on sustainable performance. Cogent Business & Management, 8(1), 1960120.

Kiranantawat, B., & Ahmad, S. Z. (2023). Conceptualising the relationship between green dynamic capability and SME sustainability performance: the role of green innovation, organisational creativity and agility. International Journal of Organizational Analysis, 31(7), 3157-3178.

Kraus, S. R. (2020). Corporate Social Responsibility and Environmental Performance: The Mediating Role of Environmental Strategy and Green Innovation. Technol. Forecast. Soc. Change , 160, 120262.

Kuo, Y. K., Khan, T. I., Islam, S. U., Abdullah, F. Z., Pradana, M., & Kaewsaeng-On, R. (2022). Impact of green HRM practices on environmental performance: The mediating role of green innovation. Frontiers in Psychology, 13, 916723.

Laari, S., Töyli, J., Solakivi, T., & Ojala, L. (2016). Firm performance and customer-driven green supply chain management. Journal of cleaner production, 112, 1960-1970.

Le, T. H. (2022). Quantile time–frequency price connectedness between green bond, green equity, sustainable investments and clean energy markets. Journal of Cleaner Production, 361, 132088.

Lyu, C., Peng, C., Li, R., Yang, X., & Cao, D. (2022). Ambidextrous leadership and sustainability performance: serial mediation effects of employees' green creativity and green product innovation. Leadership & Organization Development Journal, 43(8), 1376-1394.

Mandal, A., & Pal, B. (2021). Effects of green innovation and advertisement in an imperfect production‐based competitive supply chain under two‐tier credit facility. Mathematical Methods in the Applied Sciences, 44(17), 13227-13251.

Mohammed A. Al-Hakimi, A. K.-S. (2022). The influence of green manufacturing practices on the corporate sustainable performance of SMEs under the effect of green organizational culture: A moderated mediation analysis. Elsevier.

Mohsin, M., Jamil, K., Naseem, S., Sarfraz, M., & Ivascu, L. (2022). Elongating nexus between workplace factors and knowledge hiding behavior: mediating role of job anxiety. Psychology Research and Behavior Management, 441-457.

Mukhtar, B., Shad, M. K., & Lai, F. W. (2024). Fostering sustainability performance in the Malaysian manufacturing companies: the role of green technology innovation and innovation capabilities. Benchmarking: An International Journal.

Padilla-Lozano, C. C. (2021). Corporate social responsibility, green innovation and competitiveness – causality in manufacturing. Compet. Review, ahead-of-print.

Porter, M. E., & Linde, C. V. D. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of economic perspectives, 9(4), 97-118.

Qiu, L., Jie, X., Wang, Y., & Zhao, M. (2020). Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises. Corporate Social Responsibility and Environmental Management, 27(1), 146-165.

Sezen, B. &. (2013b). Effects of Green Manufacturing and Eco-innovation on Sustainability Performance. Procedia: Social & Behavioral Sciences, 99, 154–163.

Sezen, B., & Cankaya, S. Y. (2013). Effects of green manufacturing and eco-innovation on sustainability performance. Procedia-Social and Behavioral Sciences, 99, 154-163.

Shahzad, M., Qu, Y., Zafar, A. U., Rehman, S. U., & Islam, T. (2020). Exploring the influence of knowledge management process on corporate sustainable performance through green innovation. Journal of knowledge management, 24(9), 2079-2106.

Taha, N. A.-R. (2023). Corporate sustainability performance and profitability: The moderating role of gender diversity. Cogent Business & Management, 10(1), 2162685.

Tantayanubutr, M., & Panjakajornsak, V. (2017). Impact of green innovation on the sustainable performance of Thai food industry. Business and Economic Horizons, 13(2), 192-209.

Thanh Tiep Le, X. V. (2022). Role of green innovation and supply chain management in driving sustainable corporate performance. Elsevier.

Ullah, S., Ahmad, T., Kukreti, M., Sami, A., & Shaukat, M. R. (2024). How organizational readiness for green innovation, green innovation performance and knowledge integration affects sustainability performance of exporting firms. Journal of Asia Business Studies, 18(2), 519-537.

Umar, M., Khan, S. A. R., Zia-ul-haq, H. M., Yusliza, M. Y., & Farooq, K. (2022). The role of emerging technologies in implementing green practices to achieve sustainable operations. The TQM Journal, 34(2), 232-249.

Yang, C. S., Lu, C. S., Haider, J. J., & Marlow, P. B. (2013). The effect of green supply chain management on green performance and firm competitiveness in the context of container shipping in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 55, 55-73.

Yousaf, Z. (2021). Go for green: green innovation through green dynamic capabilities: accessing the mediating role of green practices and green value co-creation. Environmental science and pollution research, 28(39), 54863-54875.

Zhu, Q., & Sarkis, J. (2004). Relationships between operational practices and performance among early adopters of green supply chain management practices in Chinese manufacturing enterprises. Journal of operations management, 22(3), 265-289.

Zhu, Q., Sarkis, J., & Lai, K. H. (2012). Green supply chain management innovation diffusion and its relationship to organizational improvement: An ecological modernization perspective. Journal of Engineering and Technology Management, 29(1), 168-185.