<p>In an era where sustainability is imperative, green innovation has become a transformative strategy for firms striving to balance productivity with environmental responsibility. This study examines the impact of green innovation on green total factor productivity (GTFP) among firms in the MENA region, with a focus on the mediating role of innovation capacity and the moderating role of digital transformation. Grounded in the Resource-Based View and Dynamic Capability theory, the research establishes a comprehensive framework for understanding how green innovation drives sustainable productivity. Using data from 786 listed manufacturing firms in the MENA region between 2010 and 2022, the study employs advanced econometric methods, including the generalized method of moments (GMM), to address endogeneity concerns and ensure robust findings. The results confirm that green innovation significantly enhances GTFP, with innovation capacity enabling firms to effectively integrate green technologies and digital transformation amplifying their scalability and efficiency. Heterogeneity analysis reveals significant variations across ownership structures and industry sectors. Non-state enterprises outperform state-owned enterprises due to their operational flexibility, while sector-specific dynamics highlight stronger impacts of green innovation in energy and electronics compared to chemicals and textiles. This study contributes novel insights into the mechanisms and contextual factors that drive sustainable productivity, offering targeted recommendations for policymakers to promote green innovation, foster digital transformation, and implement tailored strategies for ownership structures and industry contexts to align economic growth with sustainability objectives.</p>

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Innovating for a Greener Future: Do Digital Transformation and Innovation Capacity Drive Enterprise Green Total Factor Productivity in the Knowledge Economy?

  • Joana Cobbinah,
  • Abednego Osei,
  • Joseph Owusu Amoah

摘要

In an era where sustainability is imperative, green innovation has become a transformative strategy for firms striving to balance productivity with environmental responsibility. This study examines the impact of green innovation on green total factor productivity (GTFP) among firms in the MENA region, with a focus on the mediating role of innovation capacity and the moderating role of digital transformation. Grounded in the Resource-Based View and Dynamic Capability theory, the research establishes a comprehensive framework for understanding how green innovation drives sustainable productivity. Using data from 786 listed manufacturing firms in the MENA region between 2010 and 2022, the study employs advanced econometric methods, including the generalized method of moments (GMM), to address endogeneity concerns and ensure robust findings. The results confirm that green innovation significantly enhances GTFP, with innovation capacity enabling firms to effectively integrate green technologies and digital transformation amplifying their scalability and efficiency. Heterogeneity analysis reveals significant variations across ownership structures and industry sectors. Non-state enterprises outperform state-owned enterprises due to their operational flexibility, while sector-specific dynamics highlight stronger impacts of green innovation in energy and electronics compared to chemicals and textiles. This study contributes novel insights into the mechanisms and contextual factors that drive sustainable productivity, offering targeted recommendations for policymakers to promote green innovation, foster digital transformation, and implement tailored strategies for ownership structures and industry contexts to align economic growth with sustainability objectives.