Influence of Innovation Investment on Operational Efficiency and Business Growth of Environmental Protection Companies: Basis for Improved Business Performance Framework

Authors

  • Guan Haizhong Lyceum of the Philippines University - Batangas Author

DOI:

https://doi.org/10.65166/fh308y59

Keywords:

innovation investment, operational efficiency, business growth, green innovation, technology adoption, environmental protection companies

Abstract

Innovation investment is increasingly important to environmental protection companies seeking to improve organizational efficiency, sustain competitiveness, and respond to environmental and technological demands. This study examined the influence of innovation investment on the operational efficiency and business growth of environmental protection companies in Shandong Province, China, as the basis for developing an improved business performance framework. A quantitative descriptive-correlational design was employed. Data were collected through a researcher-developed questionnaire administered to 400 officers from five environmental protection companies who had knowledge of their organizations’ strategic, financial, and operational activities. Descriptive statistics, Spearman’s rho correlation, and multiple regression analysis were used to analyze the data. The findings indicated that the companies generally practiced innovation investment through research and development, technology adoption, and green innovation initiatives. Respondents likewise reported favorable operational efficiency in resource utilization, process optimization, and cost reduction, as well as favorable business growth in revenue turnover, market share expansion, and customer base growth. Innovation investment was positively and significantly associated with both operational efficiency and business growth. Research and development, technology adoption, and green innovation initiatives also significantly predicted the two organizational outcomes, with green innovation initiatives emerging as the strongest predictor. Operational efficiency was further positively associated with business growth. The findings support an integrated framework in which sustained investment in research, technological capability, and environmentally oriented innovation strengthens operational effectiveness and contributes to organizational growth. Environmental protection companies may therefore align innovation investments with efficiency, sustainability, and long-term growth priorities.

Downloads

Download data is not yet available.

References

Abad-Segura, E., Castillo-Díaz, F. J., Batlles-delaFuente, A., & Belmonte-Ureña, L. J. (2025). The impact of sustainable technologies on business strategy and competitiveness. In S. S. Muthu (Ed.), Assessment of social sustainability management in various sectors (pp. 103-130). Springer. https://doi.org/10.1007/978-3-031-81029-9_6

Akhtar, S., Li, C., Sohu, J. M., Rasool, Y., Hassan, M. I. U., & Bilal, M. (2024). Unlocking green innovation and environmental performance: The mediated moderation of green absorptive capacity and green innovation climate. Environmental Science and Pollution Research, 31, 4547-4562. https://doi.org/10.1007/s11356-023-31403-w

Alkaraan, F., Elmarzouky, M., Hussainey, K., Venkatesh, V. G., Shi, Y., & Gulko, N. (2024). Reinforcing green business strategies with Industry 4.0 and governance towards sustainability: Natural-resource-based view and dynamic capability. Business Strategy and the Environment, 33(4), 3588-3606. https://doi.org/10.1002/bse.3665

Alkaraan, F., Elmarzouky, M., Jabbour, A. B. L. de S., Jabbour, C. J. C., & Gulko, N. (2025). Maximising sustainable performance: Integrating servitisation innovation into green sustainable supply chain management under the influence of governance and Industry 4.0. Journal of Business Research, 186, 115029. https://doi.org/10.1016/j.jbusres.2024.115029

Aslam, M., Ahmad, B., & Rasheed, T. (2025). Navigating the impact of green innovation, technological linkages, and knowledge management on sustainable performance of SMEs. Journal of International Entrepreneurship, 23(3), 593-618. https://doi.org/10.1007/s10843-024-00371-8

Atento, A. G. B., & Atento, R. G. O. (2026). Legacy retail under digital disruption: Strategic insights from National Book Store's omnichannel transition in the Philippines. Journal of Enterprise Strategy & Management Innovation, 1(1). https://doi.org/10.65166/nny9z718

Atento, A. G., & Atento, R. G. (2025). A case study of Mercury Drug Corporation: Strategic adaptation to universal healthcare and digital disruption in the Philippines. International Journal of Health & Business Analytics, 1(1). https://doi.org/10.65166/zhw7dd39

Atento, R. G., & Espelita, C. A. M. H. (2025). From community voice to marketing strategy: The feeder-school ecosystem as basis for a consumer-centered marketing framework. International Journal of Health and Business Analytics, 1(2). https://doi.org/10.65166/mt4em434

Benosa, I. R., Atento, R. G. O., Martinez, V. C., Mendoza, J. M., Mesias, R. G., & Rivera, G. C. M. (2026). Value innovation through pre-arrival room customization: A Blue Ocean Strategy design for app-enabled hospitality personalization. Journal of Enterprise Strategy & Management Innovation, 1(1). https://doi.org/10.65166/0h7xt639

Bhuiyan, F., Adu, D. A., Ullah, H., & Islam, N. (2025). Employee organisational commitment and corporate environmental sustainability practices: Mediating role of organisation innovation culture. Business Strategy and the Environment, 34(4), 4485-4506. https://doi.org/10.1002/bse.4200

Carandang, D., Baran, B., Espelita, C. A. M. H., Atento, A. G. B., & Atento, R. G. O. (2026). Perceptions of accounting software among SMEs in Calamba City, Philippines: A Technology-Organization-Environment (TOE) framework. Journal of Enterprise Strategy & Management Innovation, 1(1). https://doi.org/10.65166/dxqbny15

Chen, S., & Atento, R. G. (2026). Big data as a strategic asset: Competitive advantage, business model transformation, and managerial intelligence in Chinese enterprises. Journal of Enterprise Strategy and Management Innovation, 1(2).

Cobbinah, J., Osei, A., & Amoah, J. O. (2026). Innovating for a greener future: Do digital transformation and innovation capacity drive enterprise green total factor productivity in the knowledge economy? Journal of the Knowledge Economy, 17(1), 325-363. https://doi.org/10.1007/s13132-025-02673-1

Duong, H. K., & Nguyen, H. C. (2026). The impact of digitalisation on firm value, financial performance, and green initiatives: Evidence from Vietnam, an emerging economy. Journal of Applied Accounting Research, 27(1), 110-140. https://doi.org/10.1108/JAAR-01-2025-0015

Espelita, C. A. M. H., Atento, A. G. B., & Atento, R. G. O. (2026). Social media marketing and enrollment intent among college-bound learners: Evidence from a private higher education institution in Region IV-A, Philippines. Journal of Enterprise Strategy & Management Innovation, 1(1). https://doi.org/10.65166/bcn4pt87

Feng, J., Wang, N., & Sun, G. (2022). Measurement of innovation-driven development performance of large-scale environmental protection enterprises investing in public-private partnership projects based on the hybrid method. Sustainability, 14(9), 5096. https://doi.org/10.3390/su14095096

Gamasan, R., & Atento, R. G. O. (2026). Localized quality management system implementation and operational performance in a Philippine maritime manning office: The roles of human factors and organizational practices. Journal of Enterprise Strategy & Management Innovation, 1(1). https://doi.org/10.65166/m4htka42

Garcia, A. E., & Atento, R. G. O. (2026). Engagement and perceptions of middle managers in PhilHealth Benchbook II accreditation: Evidence from a tertiary hospital case study. Journal of Enterprise Strategy & Management Innovation, 1(1). https://doi.org/10.65166/jev58v44

Khan, P. A., Johl, S. K., & Akhtar, S. (2021). Firm sustainable development goals and firm financial performance through the lens of green innovation practices and reporting: A proactive approach. Journal of Risk and Financial Management, 14(12), 605. https://doi.org/10.3390/jrfm14120605

Le, T. T., & Govindan, K. (2024). Boosting green innovation on corporate performance: Managerial environmental concern’s moderating role. Business Strategy and the Environment, 33(7), 6254-6274. https://doi.org/10.1002/bse.3795

Mehmood, K., Jabeen, F., Rashid, M., Alshibani, S. M., Lanteri, A., & Santoro, G. (2025). Unraveling the transformation: The three-wave time-lagged study on big data analytics, green innovation and their impact on economic and environmental performance in manufacturing SMEs. European Journal of Innovation Management, 28(6), 2189-2216. https://doi.org/10.1108/EJIM-10-2023-0903

Mendoza, E., Magnaye, R., Mendoza, F., Atento, R. G., Atento, A. G., Quinto, L., ... & Espelita, C. A. M. (2026). Operational latency as a strategic liability: Service delivery failures, customer attrition, and the case for process innovation in full-service dining establishments. Journal of Enterprise Strategy and Management Innovation (JESMI), 1(2). https://doi.org/10.65166/as485767

Mora-Contreras, R., & Carrillo-Hermosilla, J. (2025). Revealing the effects of circular economy, eco-innovation and Industry 4.0 on sustainability performance and competitive advantage in manufacturing companies. Sustainable Development, 33(S1), 1249-1270. https://doi.org/10.1002/sd.70075

Mukhtar, B., Shad, M. K., & Lai, F. W. (2025). Fostering sustainability performance in the Malaysian manufacturing companies: The role of green technology innovation and innovation capabilities. Benchmarking: An International Journal, 32(3), 992-1016. https://doi.org/10.1108/BIJ-07-2023-0468

Qin, Z., Ali, Z., Ali, A., & Abdul, Q. (2026). The impact of R&D expenditure, capital investment, and green subsidies on green innovation efficiency: Evidence from Pakistani manufacturing enterprises. Environment, Development and Sustainability. Advance online publication. https://doi.org/10.1007/s10668-025-07254-5

Sharma, M., Singh, B., & Kumar, S. (2026). Impact of digital transformation on financial performance: A case study on India’s listed companies from 2012 to 2024. Digital Policy, Regulation and Governance, 28(4), 392-410. https://doi.org/10.1108/DPRG-04-2025-0085

Sun, J., Rosli, A. B., Daud, A., & Yan, X. (2025). Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts. Economies, 13(4), 90. https://doi.org/10.3390/economies13040090

Teodosio, G. M., Atento, R. G., Boa, R. A., Malijan, A., Malolos, Q. A., Merciales, P. A., & Ricablanca, P. J. (2025). Creating a Blue Ocean for family-owned SMEs: Value innovation, digital transformation, and sustainability in the case of Ivan Color Paint Center. International Journal of Health & Business Analytics, 1(2). https://doi.org/10.65166/x4kqee91

Trevlopoulos, N. S., Tsalis, T. A., Evangelinos, K. I., Tsagarakis, K. P., Vatalis, K. I., & Nikolaou, I. E. (2021). The influence of environmental regulations on business innovation, intellectual capital, environmental and economic performance. Environment Systems and Decisions, 41(1), 163-178. https://doi.org/10.1007/s10669-021-09802-6

Wang, L., & Zhang, B. (2025). Research on the green investment of traditional energy enterprises and its effectiveness under environmental regulation. Sustainability, 17(2), 590. https://doi.org/10.3390/su17020590

Wu, L., Yi, X., Hu, K., Lyulyov, O., & Pimonenko, T. (2025). The effect of ESG performance on corporate green innovation. Business Process Management Journal, 31(8), 24-48. https://doi.org/10.1108/BPMJ-04-2023-0237

Wu, Y., & Tham, J. (2023). The impact of environmental regulation, environment, social and government performance, and technological innovation on enterprise resilience under a green recovery. Heliyon, 9(10), e20278. https://doi.org/10.1016/j.heliyon.2023.e20278

Yang, J., Zuo, Z., Li, Y., & Guo, H. (2024). Manufacturing enterprises move towards sustainable development: ESG performance, market-based environmental regulation, and green technological innovation. Journal of Environmental Management, 372, 123244. https://doi.org/10.1016/j.jenvman.2024.123244

Yu, X., & Atento, R. G. (2026). Training effectiveness and improvement strategies for motor vehicle safety and technical inspectors: Evidence from two vocational institutions in Fujian, China. Journal of Enterprise Strategy and Management Innovation (JESMI), 1(2). https://doi.org/10.65166/msxhtj07

Downloads

Published

2026-08-20

Issue

Vol. 1 No. 3 (2026): August 2026: Journal of Enterprise Strategy and Management Innovation

Section

Articles

License

Copyright (c) 2026 Journal of Enterprise Strategy and Management Innovation (JESMI)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors retain copyright of their articles but grant the Journal of Enterprise Strategy and Management Innovation (JESMI) the right of first publication.