The Nexus between Proactive Eco-Innovation and Firm Financial Performance: A Circular Economy Perspective

Eco-innovation has gained considerable attention in the academic and corporate world due to its potential mitigating a firm’s sustainability issues. Most previous studies focused on reactive approaches of eco-innovation using primary data. This study mitigates existing research gap by highlighting proactive secondary panel dataset. The prime objective this is investigate relationship between firms’ financial performance. Hence, will introduce index with help In addition that, paper also explore how relates circular economy. theory Resource-Based View (RBV) was used explain among variables. conducted 31 Malaysian public listed energy companies from 2015 2019. A inferred adapting three dimensions (product, process, technology) which applicable for sector. By applying random-effects GLS regression equation modeling, it found that (product eco-innovation, process technology eco-innovation) direct effect firm Furthermore, product directly related economy through sustainable development process. findings suggest policymakers should proactively adopt eco-innovative practices. It positively affect as be cost-effective reduce industrial pollution environment.