ANALYZING THE INFLUENCE OF SUSTAINABLE PRACTICES ON FIRM PERFORMANCE THROUGH THE MEDIATING ROLE OF GREEN INNOVATION: EVIDENCE FROM THAILAND’S RESOURCES AND INDUSTRIAL PRODUCTS INDUSTRIES
Keywords:
Sustainable Practices, Green Innovation, Firm PerformanceAbstract
This study analyzed the impact of sustainable practices on firm performance, with green innovation as a mediating variable. The sample included 154 companies listed on the Stock Exchange of Thailand in the resources and industrial sectors during 2018–2022. Secondary data were collected from the LSEG database and annual reports, and the analysis was conducted using Structural Equation Modeling (SEM). The findings showed that sustainable practices positively influenced the development of green innovation (β = 0.191, p < 0.05). However, sustainable practices had both a direct negative effect (β = –0.168, p < .01) and an indirect negative effect through green innovation (β = –0.058, p = .077) on firm performance. Green innovation itself also had a significant negative impact on firm performance (β = –0.308, p < .01). These results reflect cost-related limitations and the contextual challenges of industries with high fixed-cost structures, where sustainable practices have not yet translated into financial benefits in the short term. This research helps bridge the knowledge gap regarding the transmission mechanism of sustainable practices through green innovation in developing countries. It also provides strategic implications for executives and policymakers in designing appropriate support systems to enhance sustainable transformation.
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