A systematic review on green technology innovation and sustainable business performance

Abstract

Despite increasing pressure from several stakeholders, businesses are shifting their traditional models towards digital and sustainable business models. Drawing on stakeholder theory, this review aims to explore the intersection of green technology innovation and sustainable business performance, as these two domains appear fragmented and underdeveloped in the existing literature. This review included a thorough search of Web of Science and Scopus databases using the keywords "technology", "green", "innovation", and "sustainability". We selected 84 peer-reviewed articles out of 332 articles. Selected articles mainly addressed green technology innovation on sustainable business performance. Our review generated results in the form of themes, including innovation in products and social performance, economic performance, environmental performance, and innovation in processes and social effectiveness. Green innovation was identified as a mediator between these factors. This research adopted a systematic review methodology. The review was divided into three sections: the ten most-cited articles, with a year filter applied to assess the impact of primary research in the field; the ten most-cited reviews, filtered from 2013 to 2022; and the 16 country specific articles, all published between 2013 and 2022. Each section was given a subheading. The study shows a positive relationship between green technology innovation and successful sustainable business practices. Green products and practices greatly affect economic, social, and environmental performance. Implementing green innovation notably reduces resource use, emissions, and waste, enhancing environmental sustainability. The research mainly examines sustainable business performance, highlighting green technology innovation as a mediator between sustainability and business success. Ultimately, our review offers a valuable avenue for future scholars to explore stakeholder involvement, organizational culture, the adoption of new technologies, employer branding, digital orientation, and organizational agility.