ASSESSMENT OF GREEN INNOVATION ADOPTION ON OPERATIONAL PERFORMANCE OF CHEMICAL MANUFACTURING FIRMS IN OGUN STATE

Abstract

This study assessed the level of green innovation adoption in the chemical manufacturing firms in Ogun State, and also, analysed the factors influencing green innovation adoption in the chemical manufacturing firms. Furthermore, it evaluated the effect of green innovation adoption on the operational performance of chemical manufacturing firms with a view to providing information on the level of green innovation adoption and operational performance of chemical manufacturing firms in Ogun State. A total of 223 employees within 54 chemical manufacturing firms in Ogun State constituted the respondents for the study. A well - structured questionnaire was used to collect data for the study and was subjected to data treatment and reliability test, where the variables were above a Cronbach alpha value of 0.7. The descriptive and inferential research survey design was adopted in this study. The first and second objectives were analysed using factor analysis/ mean response rating, the third objective was analysed using structural equation model (PLS-SEMS), and the hypothesis was tested at the significant level of 0.05, using structural equation model (PLS-SEMS). The study reveals that green managerial innovation was ranked the highest with a mean response rating of 7.075. The results also show that internal factors such as employee conduct, motivation and corporate social responsibility and other internal factors contribute more to the adoption of green innovation with the highest mean response rating of 7.135. Employee conduct provides firms with the most significant incentive to adopt green innovation with mean response rating of 6.493. The study further reveals that green innovation adoption has a positive effect on operational performance in the chemical manufacturing firms. Also, the analysis, through the use of PLS-SEM to test for the hypothesis, reveals that there is a positive relationship between green innovation adoption and operational performance. Thus, it proves that there is a significant positive effect of the independent variable on the dependent variable in the study area. The effect of green innovation adoption on operational performance in the chemical manufacturing firms is moderately significant because the RSquare (R2) is 0.215.