ENVIRONMENTAL COMPLEXITY AND GREEN INNOVATION: THE SIGNIFICANCE OF OPEN INNOVATION

Abstract

In recent years, people have grown increasingly environmentally conscious. Growing consumer awareness of environmental issues compels governments to enact environmentally friendly legislation and makes consumers pick more carefully which environmentally beneficial products to buy. Consequently, the market becomes increasingly competitive. Therefore, in order to be sustainable, businesses cannot continue to ignore the need to implement environmentally friendly methods. This study looks into how green innovation affects the performance of firms in this area. The analysis's conclusion was that green innovation improves both the economic and environmental performance. It was also discovered that, although environmental uncertainty lessens this benefit, green innovation has a beneficial impact on company performance. These findings suggested that businesses should step up their green innovation initiatives to provide better results and look for strategies to lower environmental uncertainty in order to maintain these outputs at their highest possible level. Lastly, the study offers some insights into the advantages and possibilities of green innovation within the framework of open innovation.