Quality Management, Green Innovation and Firm Value: Evidence from Indonesia

Authors

Abstract

The purpose of this study is to examine the effect of quality management on green innovation, as measured by green process innovation and green product innovation. The study also aims to examine the effect of green innovation as a mediating variable between quality management and firm value. Data were collected from 352 annual reports of manufacturing companies listed on the Indonesia Stock Exchange for the financial year 2014-2017. The study employed simple regression analysis, multiple regression and Sobel Test for hypotheses testing. The results showed that quality management has a positive effect on green process innovation, but not with green product innovation. Quality management decreases firm value, but, when the company conducts a green process innovation together with quality management, firm value increases. Being an ISO 9001 certified company does not guarantee implementing green product innovation because it requires a large investment. Companies can enhance firm value by simultaneously and consistently employing quality management, green process innovation and green product innovation.Keywords: quality management; green process innovation; green product innovation; firm value JEL Classifications: Q56, G32DOI: https://doi.org/10.32479/ijeep.10282

Downloads

Download data is not yet available.

Downloads

Published

2020-12-01

How to Cite

Husnaini, W., & Tjahjadi, B. (2020). Quality Management, Green Innovation and Firm Value: Evidence from Indonesia. International Journal of Energy Economics and Policy, 11(1), 255–262. Retrieved from https://econjournals.com/index.php/ijeep/article/view/10282

Issue

Vol. 11 No. 1 (2021)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.