Eco-innovation practices and sustainable business performance: The moderating effect of market turbulence in the Malaysian technology industry

The technology sector has been an ever-growing and attractive investment destination compared to many other industries in recent years. Contemporary, sustainable innovation strategies in business operations have become the essential competitive ingredients for viable business performance. Hence, this empirical research covered 109 local and foreign-owned Malaysian technology companies, a developing country context, to investigate the influence of ecologically friendly innovation practices on their sustainable business performance, further tested to examine the moderation of market turbulence toward the relationship. The data collected were analysed using the partial least squares approach. The study revealed some compelling findings, wherein each dimension of the sustainable business performance (economic, social and environmental) can be obtained by distinguishing an eco-innovation strategy, whether eco-process, eco-product or eco-organizational innovation. Specifically, the economic performance of a technology firm can be enhanced significantly by implementing an eco-organizational management system such as monitoring their eco-innovation trends, and by frequent communication of experiences and information with employees and among various departments. Second, to enhance its environmental performance, the organization can focus on updating its operating process or developing new products that were eco-friendlier. Third, market turbulence, such as fierce competition, unpredictable customer taste and technology changes, strengthens the positive effect of eco-organizational innovation on a technology firm's social performance. The research model's predictive power and capability for all endogenous constructs are satisfied and assured. (C) 2020 Elsevier Ltd. All rights reserved.

Automated summary

This study investigates the impact of ecologically friendly innovation practices on the sustainable business performance of Malaysian technology companies, revealing that implementing an eco-organizational management system, updating operating processes, and developing eco-friendly products can significantly enhance economic and environmental performance. Additionally, market turbulence can strengthen the positive effect of eco-organizational innovation on social performance. The study's research model shows predictive power and capability for all endogenous constructs.