Impact Of Green Innovation On Business Sustainability Of Firms And The Mediating Role Of Green Intellectual Capital

Abstract

Background: The global business landscape is shifting towards sustainability due to escalating environmental concerns. This review examines the interplay between green innovation, business sustainability, and the green finance, focusing on China's listed industries.

Methods: The methodology of the paper is to involve a combination of theoretical frameworks, literature review, and hypothesis formulation to explore the relationship between business sustainability, green innovation, the green finance, and the role of green intellectual capital. Drawing upon the resource-based view and institutional theory, this paper analyzes data from heavily polluting enterprises in Shanghai and Shenzhen A-share recorded manufacturing firms from 2012 to 2023. The study explores the relationship between business sustainability applications and corporate sustainable development performance, as well as the mediating role of green innovation and institutional pressure.

Results: Findings indicate a significant positive impact of Business Sustainability application on corporate sustainable development performance, with green innovation acting as a partial intermediary. The study also highlights the role of institutional pressure in regulating these effects.

Conclusion: This review offers practical insights for fostering sustainable corporate development by synthesizing diverse scholarly articles, empirical studies, and industry reports, It provides an in-depth analysis of China's current status of green innovation and its implications for the broader economic landscape.