Technological factors affecting green innovation: Evidence from the manufacturing sector in Vietnam

Abstract

Firms’ top priority is overcoming challenges to develop sustainably, generate profits, and gain a competitive advantage in the face of fierce market competition. Fostering technological innovation in the manufacturing process and investing in environmentally friendly manufacturing activities are important factors in eliminating waste and improving firm performance. This quantitative research had been examined in a sample of 400 manufacturing firms listed at industrial zones in Vietnam to determine the association between technological factors such as relative advantage, compatibility, simplicity, and green innovation. According to the research results, relative advantage, compatibility, and simplicity had a significant impact on green innovation in the manufacturing industry. From the result of this survey, manufacturing enterprises can adjust their business strategies properly to achieve better financial performance as well as a competitive advantage when implementing green innovation to develop their firms and protect the environment sustainably.

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