@article{scholars14853,
             doi = {10.3390/su13116253},
          number = {11},
            note = {cited By 27},
          volume = {13},
           title = {The nexus between proactive eco{\^a}??innovation and firm financial performance: a circular economy perspective},
            year = {2021},
       publisher = {MDPI AG},
         journal = {Sustainability (Switzerland)},
          author = {Johl, S. K. and Toha, M. A.},
            issn = {20711050},
             url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85107937407&doi=10.3390\%2fsu13116253&partnerID=40&md5=b72108491033a765dfb43a91f89469b7},
        abstract = {Eco{\^a}??innovation has gained considerable attention in the academic and corporate world due to its potential in mitigating a firm{\^a}??s sustainability issues. Most previous studies focused on the reactive approaches of eco{\^a}??innovation using primary data. This study mitigates the existing research gap by highlighting proactive eco{\^a}??innovation and using a secondary panel dataset. The prime objective of this study is to investigate the relationship between proactive eco{\^a}??innovation and firms{\^a}?? financial performance. Hence, the study will introduce the proactive eco{\^a}??innovation index with the help of secondary panel data. In addition to that, the paper will also explore how proactive eco-innovation relates to circular economy. The theory of Resource{\^a}??Based View (RBV) was used to ex-plain the relationship among the variables. This study was conducted on 31 Malaysian public listed energy companies from 2015 to 2019. A proactive eco{\^a}??innovation index was inferred by adapting three dimensions of eco{\^a}??innovation (product, process, and technology) which is applicable for the energy sector. By applying random{\^a}??effects GLS regression equation modeling, it was found that proactive eco{\^a}??innovation (product eco{\^a}??innovation, process eco{\^a}??innovation, and technology eco{\^a}??in-novation) has a direct effect on firm financial performance. Furthermore, product and process eco-innovation is directly related to a circular economy through a sustainable product development process. The findings suggest that policymakers in the firm should proactively adopt eco{\^a}??innovative practices. It will positively affect the circular economy as it will be cost{\^a}??effective and help to reduce potential industrial pollution in the environment. {\^A}{\copyright} 2021 by the authors. Licensee MDPI, Basel, Switzerland.}
}