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  DOI Prefix   10.20431


 

International Journal of Managerial Studies and Research
Volume 6, Issue 11, 2018, Page No: 30-42

The Effect of Environmental Commitment on Financial Performance through Green Innovation

Movie Rahmatika Suryani1*, Wiwiek Dianawati1

1.Airlangga University, Indonesia.

Citation : Movie Rahmatika Suryani, Wiwiek Dianawati, The Effect of Environmental Commitment on Financial Performance through Green Innovation International Journal of Managerial Studies and Research 2018 , 6(11) : 30-42

Abstract

The main objective of this research is to demonstrate empirically the effect of environmental commitment on financial performance through green innovation in the manufacturing companies listed in Indonesia Stock Exchange (IDX). This research was conducted by examining the effect of environmental commitment that refer to ISO 14001 as a independent variable on financial performance of the company that using return on equity (ROE) as a dependent variable through green process innovation and green product innovation as a mediating variable.

Samples were taken from the financial statements companies listed in Indonesia Stock Exchange (IDX) in 2014-2016. The sample was selected using sensus sampling method and acquired 202 companies. Using SPSS version 20 with the method of path analysis completed by hierarchial regression analysis with a significance level of 5% specified.

The results of this study show that environmental commitment have positive and significant effect on financial performance mediated by green process innovation, but green product innovation has not succeeded in mediating the effect of environmental commitment on financial performance.


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