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Effects of Green Technology on Firm’s Profitability and Solvency: Exhibit from the Textiles Industry of Bangladesh
Abstract
In recent years there has been increasing advocacy regarding the perception that turning green is good for the corporation and thus for the whole economy. Green technology is nowadays a popular term in any industry but the stakeholders always ask a question of whether the company benefits from using green technology or is there any financial gain? This question remains unanswered in our country, and because of that new entities are not willing to adopt green technology especially in the textile sector. This paper shows that the companies using green technology having financial benefits than the companies not using green technology. In this paper, we used financial performance measurement techniques to find out companies' financial health. This study has taken data of 43 listed companies of Dhaka Stock Exchange. Then it divides the data into two groups, a group accustomed to green technology and a group not accustomed to green technology. Firstly, we used profitability ratios (ROS, ROA, ROE) to find out two groups of companies' position. Profitability ratios vary significantly from one group to another. Secondly, we used solvency ratios (Debt asset ratio and debt-equity ratio) and find result almost similar but the result changes with the passages of time through the payment of installment. So from the study, it can be said that profitability is positively related to the adoption of green technology. Thus, by studying this paper company will be keen to adopt green technology in their organization. This paper will also help existing companies to improve the existing technology.
... Green technology (GT) refers to technologies (such as new or modified processes, techniques, and systems) that, in a circular economy, guarantee less water pollution, lower carbon emissions, green transport, green supply systems, and sustainable production processes (Uddin & Miah, 2020) and considered as a solution for minimising the firms' environmental pollution. Green technologies are used to monitor emissions, implement systems for contaminant management and minimise negative emissions (Klassen & Whybark, 1999). ...
... Governments have significant power and influence to determine the policies and services regarding sustainability maintenance and enforcement-by imposing laws and codes, governments can achieve sustainable growth. In this regard, governments can promote sustainability practices by encouraging compliance with the LEED Green Building Guidelines (Uddin & Miah, 2020), designing robust sustainability plans, improving sustainable procurement policies, regularly conducting ecological impact measurement audits, building green industrial parks, and recommending innovative ways of meeting sustainability requirements (Busi et al., 2016). A prior study by Fraj-Andrés et al. (2009) has confirmed that GR exerts substantial influence over the industry and that if companies do not comply with the requirements, fines, and penalties would follow as consequences, thus forcing companies to embrace the environmental initiative more comprehensively. ...
This study investigates the sway of stakeholder integration and green investment on Environmental Sustainability Practices (ESP), as well as the moderating role of Green Technology Adoption (GTA) in Bangladesh Textile small and medium enterprises (SMEs). A questionnaire has been used to collect data from 140 textile SMEs and analysed using the quantitative survey method. The findings have revealed that Buyer Pressure (BP), Governmental regulations (GR), and Green Investment (GI) have significant effects on ESP, but not Supplier pressure (SP). The study has also evidenced the insignificant moderating influence of GTA on the relationships among BP, GR, GI, except SP. This study makes a conceptual contribution by highlighting the relationships among these constructs and confirming the lack of stakeholder integration. The findings of the research extend the understanding and comprehensiveness of Stakeholder theory (ST) and Transaction Cost Economics (TCE) theory by providing empirical insights from the firm level. Consequently, the outcomes promote environmental practices and offer food for thought for policymakers, compliance managers, entrepreneurs, and relevant stakeholders.
Integrating the natural resource-based view theory, contingency theory and paradox theory, the current study investigates the impact of the green smart technologies adoption (GSTA) and green ambidextrous leadership (GAL) on green innovation performance (GIP), along with the mediating role of Green Innovation Behaviour (GIB). The research design for this study consists of a quantitative method, a positivism paradigm, a cross-sectional time horizon and a structured questionnaire survey. A total of 313 responses from Malaysian manufacturing firms were analysed using partial least squares-structural equation modelling (PLS-SEM). The findings reveal that GSTA, GAL and GIB positively impact GIP. Moreover, GIB mediates the association between GSTA and GIP, but there is no mediation observed in the GAL–GIP association. The results of this study provide valuable insights for policymakers, management and relevant stakeholders in developing countries on how to strike the right balance of exploitation and exploration leadership in uncertain and volatile market settings, while fostering GSTA and GIP. The adoption of GSTA and GAL improves manufacturing companies’ sustainability. Furthermore, these findings contribute to the Malaysian government’s commitment to the Nationally Determined Contribution towards the Paris Agreement, the Shared Prosperity 2030 vision and the proposed 15 key economic growth activities.
Meaning of green technology is the technology which is environment friendly, developed and used in such a way so that it doesn't disturb our environment and conserves natural resources. Some people refer green technology as environmental technology and clean technology. The present expectation is that this field will bring innovation changes in daily life of similar magnitude of information technology. Green technology is based on the four pillars on various sectors. Government takes initiatives to promote green technology. Government introduced many fiscal incentives that generate electricity from renewable sources. Import duty and sales tax exemption for solar systems equipment, sales tax exemption for the purchase of solar heating system equipment from local manufacturers. Ministry of energy has also implemented national level annually month to raise awareness about renewable energy & promote green technology. The goals of green technology are as follows: To meet the needs of society in ways without damaging or depleting natural resources on earth is the main objective of green technology. The idea is to meet present needs without making any compromises Focus is being shifted on making products that can be fully reclaimed or re-used. By changing patterns of production and consumption, steps are being taken to reduce waste and pollution, as one of the important goals of green technology. It is essential to develop alternative technologies to prevent any further damage health and its advantages and their disadvantages of the green technology. Many companies have committed to establishing business & manufacturing practices. These are: Dell, IBM, Intel, Nike, and Johnson& Johnson.
In recent years, environmental innovations are getting increasingly at the center both of the scientific debate and of the policy-maker agenda. Adopting the resource-based view, this paper provides a comprehensive framework for understanding the specific role of – internal, external and hybrid – resources in the environmental innovation development. Using a dataset of 4,829 Spanish manufacturing firms and estimating a maximum-likelihood probit model with sample selection, it is found that internal resources have greater importance for environmental innovations. Moreover, green innovators seem to be characterized by more intensive external relationships. For hybrid resources, acquisition of equipment but not of patents is more relevant. Finally, empirical evidence suggest the relevance of complementing the analysis of the external factors triggering environmental innovations with those of the internal resources the firm has access to in order to fully understand and support the development of environmental resources.
Stakeholder theory has been a popular heuristic for describing the management environment for years, but it has not attained full theoretical status. Our aim in this article is to contribute to a theory of stakeholder identification and salience based on stakeholders possessing one or more of three relationship attributes: power, legitimacy, and urgency. By combining these attributes, we generate a typology of stakeholders, propositions concerning their salience to managers of the firm, and research and management implications.
This article reviews the empirical literature on the impacts of environmental regulations on firms’ competitiveness as measured by trade, industry location, employment, productivity, and innovation. The evidence shows that environmental regulations can lead to statistically significant adverse effects on trade, employment, plant location, and productivity in the short run, in particular in a well-identified subset of pollution- and energy-intensive sectors, but that these impacts are small relative to general trends in production. At the same time, there is evidence that environmental regulations induce innovation in clean technologies, but the resulting benefits do not appear to be large enough to outweigh the costs of regulations for the regulated entities. As measures to address competitiveness impacts are increasingly incorporated into the design of environmental regulations, future research will be needed to assess the validity and effectiveness of such measures and to ensure they are compatible with the environmental objectives of the policies.
The essential guide for forward-thinking business leaders who see the Green Wave coming and want to profit from it. This book explores what every executive must know to manage the environmental challenges facing society and business. Based on the authors' years of experience and hundreds of interviews with corporate leaders around the world, Green to Gold shows how companies generate lasting value, cutting costs, reducing risk, increasing revenues, and creating strong brands, by building environmental thinking into their business strategies. Daniel C. Esty and Andrew S. Winston provide clear how-to advice and concrete examples from companies like BP, Toyota, IKEA, GE, and Nike that are achieving both environmental and business success. The authors show how these cutting-edge companies are establishing an "eco-advantage" in the marketplace as traditional elements of competitive differentiation fade in importance. Esty and Winston not only highlight successful strategies but also make plain what does not work by describing why environmental initiatives sometimes fail despite the best intentions. Green to Gold is written for executives at every level and for businesses of all kinds and sizes. Esty and Winston guide leaders through a complex new world of resource shortfalls, regulatory restrictions, and growing pressure from customers and other stakeholders to strive for sustainability. With a sharp focus on execution, Esty and Winston offer a thoughtful, pragmatic, and inspiring road map that companies can use to cope with environmental pressures and responsibilities while sparking innovation that will drive long-term growth. Green to Gold is the new template for global CEOs who want to be good stewards of the Earth while simultaneously building the bottom line. © 2006 by Daniel C. Esty and Andrew S. Winston. All rights reserved.
Reputation competitive advantage environmental marketing
In this paper, we seek to enhance the understanding of the link between environmental management and firm performance, so contributing to the debate of being “green and competitive”. Relying on the resource-based view, we study the effect of different environmental management capabilities on a firm’s market and image performance. In particular, we analyze the capabilities to implement product and process-related environmental actions with different types of environmental focus (materials, energy, pollution) and the capabilities to develop environmental collaborations with different types of actors (both business actors and non-business actors). To this aim we conducted a survey on 122 Italian companies. Results show that market performance and image performance have partially different antecedents. Specifically, a firm’s market performance is positively affected by the capabilities to implement environmental actions with a focus on energy and pollution and to develop environmental collaborations both with business and with non-business actors. On the other hand, a firm’s image performance is positively affected by the capabilities to implement environmental actions with a focus on materials and to develop environmental collaborations with non-business actors.
This paper explores the relationship between firms’ R&D cooperation strategies and their propensity to introduce environmental innovations.Previous literature has supported that environmental innovations differ from other innovations as far as externalities and drivers of their introduction are concerned, highlighting mainly the importance of regulation to trigger them. Using data from the Community Innovation Survey on Spanish manufacturing firms (PITEC), this paper investigates specificities that affect rather how they are developed, and in particular the higher importance of R&D cooperation with external partners.The econometric estimations, controlling for selection bias, suggest that environmental innovative firms cooperate on innovation with external partners to a higher extent than other innovative firms. Furthermore, cooperation with suppliers, KIBS and universities is more relevant than for other innovators, whereas cooperation with clients does not seem to be differentially important. Finally, the results bespoke of a substitution effect between cooperation activities and the internal R&D effort.