An Empirical Investigation of Internal Drivers and Sustainable Business Outcomes of Eco-Innovation adoption in Manufacturing Industry of Pakistan

Abstract

The study examines the dynamics of eco-innovation adoption in Pakistan's manufacturing industry, particularly focusing on the impact of internal drivers of EI such as technological capabilities, cost reduction, managerial environmental concern, and environmental strategy focus on sustainable business performance of the firms. The study also investigates the function of eco-innovation as a mediator in the relationship between these drivers and sustainable business performance. Data were gathered using an online questionnaire from lower, middle, and upper management of small, medium and large industrial enterprises in Pakistan. A complete empirical analysis reveals that all hypotheses are accepted, emphasizing the significant impact of internal determinants for eco-innovation adoption. Furthermore, the study underlines the crucial role of eco-innovation as a mediator, reinforcing the link between internal drivers of eco-innovation adoption and the attainment of sustainable business performance. This study adds vital insights into developing environmentally responsible manufacturing methods, with practical consequences for firms, legislators, and researchers.