Moderating role of technological turbulence between green product innovation, green process innovation and performance of SMEs

Abstract

Abstract Innovation in green technologies is a key factor propelling Jordanian sustainable development in the small and medium enterprises for achieving sustainability. Jordan is considered as a hub of small and medium enterprises, however, despite technological advancements and the efforts of the government, small and medium enterprises in Jordan are scarcely catering the aspect of green activities and researchers have paid less attention towards the same. Green product and green process innovation mode choices have drawn enough attention recently, but limited researchers have thoroughly examined the pathways through which green innovation is transmitted to small and medium enterprises’ performance. Green product and process innovation are the two main streams of green innovation that can enhance small and medium enterprises’ performance. The current research builds the framework for SMEs performance based on green product innovation and green process innovation following earlier research that have been conducted in the context of developed countries. It conducts an empirical analysis using responses of 384 manufacturing sector small and medium enterprises in Jordan. The findings demonstrate that small and medium enterprises can perform better when green products and processes are innovated. One significant moderating variable over the performance paths of small and medium enterprises is technological turbulence. The findings of the research contribute to a better understanding of green innovation and have implications for designing policies that promote green development.

Keywords

• Green product innovation
• Green process innovation
• Sustainability
• Performance of SMEs
• Technological turbulence