ISSN: 2222-6990
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Green innovation is increasingly recognised as a strategic approach for reducing environmental impact while enhancing business sustainability and competitiveness. Despite growing scholarly interest, research on the adoption of green innovation remains fragmented, with limited consensus on the key factors influencing its implementation across industries. This study undertakes a systematic literature review to address three main research questions: (i) how green innovation is defined, (ii) what factors drive its adoption, and (iii) which theories are commonly used in its examination. Using PRISMA guidelines, a total of 91 journal articles published between 2010 and 2024 were retrieved from the Scopus database. After applying inclusion and exclusion criteria, 20 high-quality articles were selected for in-depth analysis. The findings indicate that green innovation encompasses technological, procedural, and managerial advancements that collectively promote sustainability. Key drivers of adoption include government regulations and support, technological readiness, organisational culture, and market or customer demands. Theoretical frameworks frequently employed in the literature include the Triple Bottom Line (TBL) theory, the Resource-Based View (RBV), and its extensions such as the Natural Resource-Based View (NRBV) and Resource-Based Theory (RBT). These theories offer structured insights into how firms utilise internal capabilities and external pressures to adopt environmentally friendly practices. Overall, this review highlights the multidimensional and cross-sectoral nature of green innovation adoption. By synthesising current findings, it not only contributes to a more cohesive understanding of the topic but also identifies key research gaps and offers directions for future empirical investigations, particularly in underexplored sectors and developing economies.
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