Abstract:
Green innovation has emerged as a salient approach to amplify business sustainability.
Yet, stimulating green innovations is still confronting developing countries. The
contradiction between economic efficiency and stakeholder pressures on green innovation
hinders sustainable development in a country. Hence, this study addressed this unexplored
area in green innovations which investigates whether the stakeholder pressures have
impacted the decision of adopting green innovations. Previous literature has mainly
focused on a single factor rather than the overall consideration of both internal and
external stakeholder pressures together. Also, previous findings were mainly based on the
manufacturing industry. This research was conducted to assess internal and external
stakeholder pressures on adopting green innovations together in both the manufacturing
and service industries. A quantitative study was conducted by a questionnaire survey
involving 205 managers selected by a stratified sampling method in companies certified
with International Organizations for Standardization 14001. Descriptive statistics,
regression analysis, and Pearson coefficient correlation were used to deduce the impact
and to prove the hypothesis by analyzing data. Findings manifested that external and
internal stakeholder pressures significantly impacted on adopting green innovations.
Despite the stimulation provided by the internal stakeholder pressure, external stakeholder
pressure has been identified as the most influential factor that impacted on adopting green
innovations. The study provided managers with implications to enhance the competitive
advantage by forging value to the stakeholders. The study also contributes to the
literature of green innovations and stakeholder theory. However, further research is
suggested based on disparate samples and considering diverse stakeholder pressures in the
future to validate the findings further.
Keywords: External stakeholder pressure, Green innovation, Internal stakeholder pressure
