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How to improve financial performance through sustainable manufacturing practices? The roles of green product innovation and digital transformation

Hulya Turkcan (Faculty of Business Administration, Gebze Technical University, Kocaeli, Turkey)

Journal of Manufacturing Technology Management

ISSN: 1741-038X

Article publication date: 28 November 2024

218

Abstract

Purpose

This research aims to explore the relationship between sustainable manufacturing practices (SMP) and financial performance (FP) by considering the mediating role of green product innovation (GPI) and the moderating effect of digital transformation (DT).

Design/methodology/approach

This study proposes a research model grounded in a practice-based view and a resource-based view and conducts empirical tests by using a sample of 244 manufacturing firms.

Findings

This study revealed that SMP influences GPI, and GPI mediates the SMP–FP link. In addition, findings demonstrated that DT strengthens the impact of SMP on GPI, and moderates the mediation impact of GPI on the relations between SMP and FP.

Originality/value

Although overwhelming environmental concerns cause SMP to be considered increasingly crucial, there is a dilemma regarding its impact on FP. Moreover, due to the strategic importance of DT, there is a lot of interest in its relationship with sustainability-related issues. Nevertheless, this association is still not clarified. This study addresses the research gaps, provides an extended understanding of how SMP affects FP and offers a novel insight that reveals the role of DT.

Keywords

Citation

Turkcan, H. (2024), "How to improve financial performance through sustainable manufacturing practices? The roles of green product innovation and digital transformation", Journal of Manufacturing Technology Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JMTM-03-2024-0112

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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