Green Innovation Behaviour: Impact of Industry 4.0 and Open Innovation

Developing nations have motivated contemporary manufacturing companies to embrace green innovation and focus on smart technology that is sustainable to harness the growing economy and uplift the people. Although, scientific research in this direction has been neglected, and at the same time there are challenges to the attainment while meeting the need of the people. This study aims to investigate the impact of Industry 4.0, open innovation and green innovation performance on green innovation behaviour. To this end, a theoretical model was established. A quantitative research approach was applied in which survey data were utilized to capture 247 responses from different manufacturing companies in Malaysia. The model was tested using SmartPLSver3.0 to measure the structural relationship between variables. The findings indicate that Industry 4.0 and green innovation performance positively impact green innovation behaviour, compared to open innovation which has no impact. The impact of green innovation performance is found to be stronger when compared to Industry 4.0 and open innovation. Likewise, green innovation performance exhibits a substantial mediating impact between the exogenous variables and green innovation behaviour. The policy implication and conclusions are further discussed in the last section of the study.