Green Technology Innovation and Corporate Environmental Performance

Abstract

Green Technology Innovation (GTI) has emerged as a critical strategy for organizations seeking to achieve environmental sustainability while maintaining competitiveness. This study examines the relationship between GTI and Corporate Environmental Performance (CEP) through a sequential exploratory mixed-method approach combining a systematic literature review and qualitative insights from sustainability experts. The literature review, based on studies published between 2015 and 2025, identifies key dimensions of GTI, including green product innovation, green process innovation, and digital green technologies such as Artificial Intelligence, Internet of Things, and Big Data Analytics. Findings reveal that GTI significantly contributes to improved environmental outcomes through reduced emissions, enhanced resource efficiency, waste minimization, and regulatory compliance. Qualitative findings further indicate that organizational capabilities, sustainability-oriented culture, ESG orientation, and regulatory support play vital roles in translating technological innovation into environmental performance. The study develops a holistic conceptual framework grounded in the Natural Resource-Based View, Dynamic Capability Theory, Stakeholder Theory, and Ecological Modernization Theory. The framework proposes that GTI positively influences CEP, while regulatory pressure, ESG orientation, and green organizational culture strengthen this relationship. The study contributes to sustainability literature by integrating technological, organizational, and institutional perspectives and offers practical implications for managers and policymakers promoting sustainable business transformation.