IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v14y2025i4p32-41.html

The influence of strategic flexibility on green business performance mediated by eco innovation and green manufacturing

Author

Listed:
  • Gusti Kurnia Dwiputra

    (Brawijaya University)

  • Wahdiyat Moko

    (Brawijaya University)

  • Christin Susilowati

    (University of Brawijaya)

Abstract

The study aims to examine and analyze the role of strategic flexibility on green business performance with eco innovation and green manufacturing as mediating variables. This research adopts a quantitative approach with a purposive sampling technique. The object of the study is manufacturing companies in East Java that are registered under the PROPER program. A total of 136 respondents participated in this study. Data were collected using a questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The research results show that strategic flexibility significantly influences green business performance, strategic flexibility has a significant effect on eco innovation, strategic flexibility significantly affects green manufacturing, eco innovation and green manufacturing positively influence green business performance, and eco innovation and green manufacturing partially mediate the effect of strategic flexibility on green business performance. The importance of green business performance lies in its ability to support long-term environmental and economic sustainability through innovation and operational transformation. Companies with greater flexibility are more likely to adopt green practices and respond to dynamic environmental changes effectively. This research makes a theoretical contribution by supporting the Resource-Based View (RBV), which highlights the importance of internal resources and capabilities in achieving sustainability goals. Practically, the study provides insights for companies to strengthen strategic adaptability and promote innovation-driven environmental practices. Key Words:Strategic Flexibility, Green Business Performance, Eco Innovation, Green Manufacturing

Suggested Citation

  • Gusti Kurnia Dwiputra & Wahdiyat Moko & Christin Susilowati, 2025. "The influence of strategic flexibility on green business performance mediated by eco innovation and green manufacturing," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 14(4), pages 32-41, June.
    • Handle: RePEc:rbs:ijbrss:v:14:y:2025:i:4:p:32-41
    DOI: 10.20525/ijrbs.v14i4.4223
    as

    Download full text from publisher

    File URL: https://ssbfnet.com/ojs/index.php/ijrbs/article/view/4223/2795
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v14i4.4223
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v14i4.4223?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bu, Maoliang & Qiao, Zhenzi & Liu, Beibei, 2020. "Voluntary environmental regulation and firm innovation in China," Economic Modelling, Elsevier, vol. 89(C), pages 10-18.
    2. Shuai Shao & Zhigao Hu & Jianhua Cao & Lili Yang & Dabo Guan, 2020. "Environmental Regulation and Enterprise Innovation: A Review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1465-1478, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    2. Wang, Weilong & Wang, Jianlong & Wu, Haitao, 2024. "The impact of energy-consuming rights trading on green total factor productivity in the context of digital economy: Evidence from listed firms in China," Energy Economics, Elsevier, vol. 131(C).
    3. Azeez Oyebanji Abiola & Igbekoyi Olusola Esther & Adeyemo Foluke Helen, 2024. "Environmental Risk Management and Financial Performance in Listed Multinational Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(12), pages 50-74, December.
    4. Xu, Pei & Ye, Penghao & Zhao, Fan & Jahanger, Atif, 2024. "Technology spillover and market competitiveness in green credit induced corporate green innovation: An evolutionary game theory and empirical study," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    5. Zhao, Ziyi & Zhao, Yuhuan & Lv, Xin & Li, Xiaoping & Zheng, Lu & Fan, Shunan & Zuo, Sumin, 2024. "Environmental regulation and green innovation: Does state ownership matter?," Energy Economics, Elsevier, vol. 136(C).
    6. Lee, Chien-Chiang & Wang, En-Ze, 2025. "Energy regulation and industrial robot adoption: The role of human capital," Energy Economics, Elsevier, vol. 146(C).
    7. Zhengqing Zhou & Hongshan Ai & Jiacheng Liu & Malin Song & Huiyu Yang, 2025. "Auditing the Leader: The Impact of Targeting Local Officials’ Environmental Regulations on Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1258-1290, March.
    8. Zibiao Li & Siwei Wang & Keyuan Sun & Han Li & Xue Lu, 2022. "Energy Conservation or Emission Reduction? The Effects of Different Types of Environmental Regulations on Enterprises’ Green Innovation Preference," SAGE Open, , vol. 12(2), pages 21582440221, June.
    9. Zhang, Guoxing & Gao, Yang & Su, Bin & Chen, Zhanglei & Zhang, Yi, 2025. "Inconsistent effects of heterogeneous environmental policy on corporate green innovation: Evidence from China's companies and policy quantification," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 315-342.
    10. Yanwei Lyu & Jinning Zhang & Lingli Wang & Fei Yang & Yu Hao, 2022. "Towards a win‐win situation for innovation and sustainable development: The role of environmental regulation," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1703-1717, December.
    11. Wang, Chunyang, 2025. "Is environmental regulation an incentive or an obstacle to green innovation?," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 52-68.
    12. Wang, Si-Meng & Wang, Miao & Feng, Chao, 2024. "Deleveraging and green technology innovation: Evidence from Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 69(C).
    13. Xie, Yu & Wu, Desheng & Li, Xiaoyan & Tian, Suhua, 2023. "How does environmental regulation affect productivity? The role of corporate compliance strategies," Economic Modelling, Elsevier, vol. 126(C).
    14. Zhu, Bo & Wang, Yiwei, 2024. "Green governance and stock price crash risk: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    15. Yuanyang Wang & Yanlin Yang & Chenyu Fu & Zengzeng Fan & Xiaoping Zhou, 2021. "Environmental regulation, environmental responsibility, and green technology innovation: Empirical research from China," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-21, September.
    16. Zidan Shan & Xiangyu Han & Zhaoyong Zhang, 2025. "Environmental regulation and firm productivity: evidence from China’s new energy industry," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(3), pages 871-906, September.
    17. Ying Shu & Xiaobin Zhuang & Rui Ying & Guanghua Xu, 2024. "Formal Institutional Pressure and the Integration of Corporate Environmental and Financial Performance: Empirical Evidence from Listed Companies in Heavily Polluting Industries in China," Sustainability, MDPI, vol. 16(6), pages 1-20, March.
    18. Yanli Ji & Jie Xue & Kaiyang Zhong, 2022. "Does Environmental Regulation Promote Industrial Green Technology Progress? Empirical Evidence from China with a Heterogeneity Analysis," IJERPH, MDPI, vol. 19(1), pages 1-23, January.
    19. Skrynkovskyy, Ruslan & Pavlenchyk, Nataliia & Tsyuh, Svyatoslav & Zanevskyy, Ihor & Pavlenchyk, Anatoliі, . "Economic-mathematical model of enterprise profit maximization in the system of sustainable development values," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(4).
    20. Beibei Zhao, 2025. "RETRACTED ARTICLE: Examining the Transformative Influence of Digital Finance on Green Technological Innovation: Empirical Insights from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 2068-2081, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:14:y:2025:i:4:p:32-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.