Green process innovation and financial performance in small and medium-sized enterprises in a developing country : role of resource orchestration

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Authors

Appiah, Listowel Owusu
Essuman, Dominic
Forson, Cassiel Ato
Boso, Nathaniel
Annan, Jonathan

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier

Abstract

While existing resource-based theorizations consider green process innovation as an important internal firm resource, this research utilizes the resource orchestration logic to argue that a greater capability to manage and deploy green process innovation is a major contributor to financial performance of small and medium-sized enterprises (SMEs). The study posits that conditions of high green value co-creation, supported by a robust customer-driven green strategy, enable SMEs to orchestrate green process innovation to improve financial performance. The study tests these arguments on primary data from 224 manufacturing SMEs in a developing country in Sub-Saharan Africa – Ghana. The results support the study’s theorizations. However, the study also finds that high green value co-creation, when supported with less emphasis on customer-driven green strategy, amplifies the financial benefits SMEs generate from green process innovation. These findings offer new insights into the resource orchestration conditions under which investments in green process innovation pay off.

Description

Keywords

Small and medium-sized enterprises (SMEs), Green innovations, Financial performance, Value co-creation (VCC), Strategy implementation, Resource orchestration theory, Developing country, Sub-Saharan Africa (SSA), SDG-17: Partnerships for the goals, SDG-08: Decent work and economic growth, SDG-01: No poverty

Sustainable Development Goals

SDG-01:No poverty
SDG-08:Decent work and economic growth
SDG-17:Partnerships for the goals

Citation

Appiah, L.O., Essuman, D., Forson, C.A. et al. 2025, 'Green process innovation and financial performance in small and medium-sized enterprises in a developing country : role of resource orchestration', Journal of Business Research, vol. 189, art. 115210, pp. 1-14, doi : 10.1016/j.jbusres.2025.115210.