Add time:08/31/2019         Source:sciencedirect.com

Green technology innovation has received continuous attention from the business sector in recent years, yet few studies have examined the internal mechanisms and contingent conditions that link green technology innovation to a firm's financial performance. Using data from 209 listed companies that belong to heavily polluting manufacturing industries, collected via the content analysis method, we find that green process innovation has a positive impact on green product innovation, and that both green process innovation and green product innovation can improve a firm's financial performance. We also find that green product innovation mediates the relationship between green process innovation and a firm's financial performance, and that a firm's green image moderates the relationship between green product innovation and financial performance. However, our study shows that the moderating effect of green subsidies on the relationship between green product innovation and a firm's financial performance is not supported. Based on these findings, we provide several recommendations for managers and government entities to effectively implement green technology innovation.

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