relation: https://khub.utp.edu.my/scholars/14853/
title: The nexus between proactive eco�innovation and firm financial performance: a circular economy perspective
creator: Johl, S.K.
creator: Toha, M.A.
description: Eco�innovation has gained considerable attention in the academic and corporate world due to its potential in mitigating a firm�s sustainability issues. Most previous studies focused on the reactive approaches of eco�innovation using primary data. This study mitigates the existing research gap by highlighting proactive eco�innovation and using a secondary panel dataset. The prime objective of this study is to investigate the relationship between proactive eco�innovation and firms� financial performance. Hence, the study will introduce the proactive eco�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�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�innovation index was inferred by adapting three dimensions of eco�innovation (product, process, and technology) which is applicable for the energy sector. By applying random�effects GLS regression equation modeling, it was found that proactive eco�innovation (product eco�innovation, process eco�innovation, and technology eco�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�innovative practices. It will positively affect the circular economy as it will be cost�effective and help to reduce potential industrial pollution in the environment. © 2021 by the authors. Licensee MDPI, Basel, Switzerland.
publisher: MDPI AG
date: 2021
type: Article
type: PeerReviewed
identifier:   Johl, S.K. and Toha, M.A.  (2021) The nexus between proactive eco�innovation and firm financial performance: a circular economy perspective.  Sustainability (Switzerland), 13 (11).   ISSN 20711050     
relation: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85107937407&doi=10.3390%2fsu13116253&partnerID=40&md5=b72108491033a765dfb43a91f89469b7
relation: 10.3390/su13116253
identifier: 10.3390/su13116253