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

Abstract

Many companies have recognized the concepts of environmental innovation. However, 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 the firms` performance. A structured questionnaire 5-point Likert scale was developed for the purpose of data collection, the researcher include 19 Saudi Chemical Industrial Firms to select 76 participants on a voluntary basis distributing 4 questionnaires for each firm targeting the top and middle management. 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%. According to statistical results, green product innovation have a positive effect on the firms’ performance is statistically significant at p < 0.00. This study demonstrates the result can contribute for the company that involve in manufacture green products as can create new environment and enhance on their business performance.