Does Green Product Innovation affect Performance of Saudi Chemical Industrial Firms?

  • Abdulrahman Alsughayir School of Economics & Administrative Science, Al Imam Muhammad ibn Saud Islamic University, Riyadh 11431


Although many companies have recognized the concepts of environmental innovation, little research attention has been devoted to the consideration of relations between green product innovation and firm performance. This study aimed to investigate the impact of green product innovation on firms’ performance. A structured questionnaire was developed for the purpose of data collection, and 19 Saudi chemical firms were included. The data from each of the returned questionnaire were coded and entered into (SPSS) version 18.0 software, simple linear regression which was used for statistical analysis. Response rate was 89.4%. The results show that that green product innovation has a statistically significant impact on firms’ performance (calculated F was 91.7); with statistically significant at p < 0.00. These results can help companies involved in manufacturing green products to create a new environment and enhance their business performance.


1. Albino, V., Balice, A., & Dangelico, R. M. (2009). Environmental strategies and green product development: an overview on sustainability‐driven companies. Business Strategy and the Environment, 18(2), 83-96.
2. Albarq, A. N. (2014). Industrial Purchase among Saudi Managers: Does Country of Origin Matter. International Journal of Marketing Studies, 6(1), 116-126.
3. Arab News (n.d) Retrieved January 23, 2017, from
4. Barbiroli, G., & Raggi, A. (2003). A method for evaluating the overall technical and economic performance of environmental innovations in production cycles. Journal of Cleaner Production, 11(4), 365-374.
5. Banerjee, S. B., Iyer, E. S., & Kashyap, R. K. (2003). Corporate environmentalism: Antecedents and influence of industry type. Journal of Marketing, 67(2), 106-122.
6. Cainelli, G., De Marchi, V., & Grandinetti, R. (2015). Does the development of environmental innovation require different resources? Evidence from Spanish manufacturing firms. Journal of Cleaner Production, 94, 211-220.
7. Chamorro, A., & Bañegil, T. M. (2006). Green marketing philosophy: a study of Spanish firms with ecolabels. Corporate Social Responsibility and Environmental Management, 13(1), 11-24.
8. Chen, Lai, and Wen, (2006) “The influence of green innovation performance on corporate advantage in Taiwan”. Journal of Business Ethics, vol. 67, No.4, PP. 331-339.
9. Chiou, T. Y., Chan, H. K., Lettice, F., & Chung, S. H. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822-836.
10. Chuang, S. P., & Yang, C. L. (2014). Key success factors when implementing a green-manufacturing system. Production Planning & Control, 25(11), 923-937.
11. Conway, S., & Steward, F. (1998). Networks and interfaces in environmental innovation: a comparative study in the UK and Germany. The Journal of High Technology Management Research, 9(2), 239-253.
12. Curlo, E. (1999). Marketing strategy, product safety, and ethical factors in consumer choice. Journal of Business Ethics, 21(1), 37-48.
13. Dangelico, R. M. (2015). Green product innovation: where we are and where we are going. Business Strategy and the Environment.
14. Fullerton, R. R., & Wempe, W. F. (2009). Lean manufacturing, non-financial performance measures, and financial performance. International Journal of Operations & Production Management, 29(3), 214-240.
15. Ginsberg, J. M., & Bloom, P. N. (2004). Choosing the right green-marketing strategy. MIT Sloan Management Review, 46(1), 79.
16. Gluch, P., Gustafsson, M., & Thuvander, L. (2009). An absorptive capacity model for green innovation and performance in the construction industry. Construction Management and Economics, 27(5), 451-464.
17. Govindan, K., Rajendran, S., Sarkis, J., & Murugesan, P. (2015). Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. Journal of Cleaner Production, 98, 66-83.
18. Ghalayini, A. M., & Noble, J. S. (1996). The changing basis of performance measurement. International Journal of Operations & Production Management, 16(8), 63-80.
19. Hasan, Z., & Ali, N. A. (2015). The impact of green marketing strategy on the firm's performance in Malaysia. Procedia-Social and Behavioral Sciences, 172, 463-470.
20. Horbach, J. (2008). Determinants of environmental innovation—new evidence from German panel data sources. Research policy, 37(1), 163-173.
21. Ilker, I. M. (2012). The impact of green product innovation on firm performance and competitive capability: the moderating role of managerial environmental concern. Procedia-Social and Behavioral Sciences, 62, 854-864.
22. Ittner, C. D., Larcker, D. F., & Randall, T. (2003). Performance implications of strategic performance measurement in financial services firms. Accounting, Organizations and Society, 28(7), 715-741.
23. Jacob, J., & Cherian, J. (2012). Green marketing: A study of consumers' attitude towards environment friendly products. Asían social science, 8(12), 117.
24. Kammerer, D. (2009). The effects of customer benefit and regulation on environmental product innovation. Empirical evidence from appliance manufacturers in Germany. Ecological Economics, 68(8), 2285-2295.
25. Marshall, M. E., & Mayer, D. W. (1992). Environmental training: It's good business. Business Horizons, 35(2), 54-57.
26. McAdam, R., Hazlett, S. A., & Anderson-Gillespie, K. (2008). Developing a conceptual model of lead performance measurement and benchmarking: A multiple case analysis. International Journal of Operations & Production Management, 28(12), 1153-1185.
27. Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W. (1999). Antecedents and consequences of marketing strategy making: a model and a test. The Journal of Marketing, 18-40.
28. Nakamura, E. (2011). Does environmental investment really contribute to firm performance? An empirical analysis using Japanese firms. Eurasian Business Review, 1(2), 91-111.
29. Rahbar, E., & Abdul Wahid, N. (2011). Investigation of green marketing tools' effect on consumers' purchase behavior. Business strategy series, 12(2), 73-83.
30. Rennings, K., & Rammer, C. (2011). The impact of regulation-driven environmental innovation on innovation success and firm performance. Industry and Innovation, 18(03), 255-283.
31. SAMA, 2015. Saudi Arabian Monetary Agency: Fifty Annual Report, pp. 356.
32. Saudi Arabia Sustainable Energy. (2015). Saudi Arabia’s 2015 fiscal budget. Retrieved 9 September 2015, from
33. Soylu, K., & Dumville, J. C. (2011). Design for environment: The greening of product and supply chain. Maritime Economics & Logistics, 13(1), 29-43.
34. Stanley (2012), “The influence of green product competitiveness on the success of green product innovation Empirical evidence from the Chinese electrical and electronics industry” European Journal of Innovation Management, Vol. 15, No. 4, PP. 468-490.
35. Turpitz, K. (2004). The determinants and effects of environmental product innovations: an analysis on the base of case studies. Zew Discussion Paper 04-02.
36. Zailani, S., Govindan, K., Iranmanesh, M., Shaharudin, M. R., & Chong, Y. S. (2015). Green innovation adoption in automotive supply chain: the Malaysian case. Journal of Cleaner Production, 108, 1115-1122.
How to Cite
ALSUGHAYIR, Abdulrahman. Does Green Product Innovation affect Performance of Saudi Chemical Industrial Firms?. JOURNAL OF SOCIAL SCIENCE RESEARCH, [S.l.], v. 11, n. 2, p. 2355-2363, apr. 2017. ISSN 2321-1091. Available at: <>. Date accessed: 23 oct. 2017. doi: