The influence of organisational values on green innovation and environmental outcomes Open Access

The increasing integration of sustainability into business practices reflects a shift in corporate strategies to address social, environmental, and economic responsibilities. This helps extend their success beyond financial outcomes (Singh, 2024). Sustainability initiatives strengthen consumer trust and competitiveness as regulatory and investor expectations rise (Agu, Iyelolu, Idemudia, & Ijomah, 2024; Kumar & Tomar, 2024). Research shows these initiatives can reduce environmental impact, improve resource efficiency, and support long-term value creation (Kadirova, 2024). Regulatory pressure has also driven the adoption of ESG principles, which now play a central role in long-term performance despite challenges in measurement and internal alignment (Wahyuni, Hazizah, Ramadhani, & Ahmad, 2024; Tuteja, 2024; Lutzer et al., 2024).

Organisational values that prioritise sustainability are key drivers of sustainable change (Czerniawska & Szydło, 2020). Value-based leadership fosters cultures of shared responsibility and continuous improvement (Martins & Coetzee, 2011; Ruibyte & Adamoniene, 2013). Embedding sustainability into organisational values can influence stakeholder behaviour and strengthen sustainable practices (Bunds, Tang, & Koenigstorfer, 2023), and value-centred firms adopting green technologies often achieve financial and non-financial gains (Haleem, Ilyas, & Jehangir, 2024; Chatradhi, 2025a).

Green innovation or environmentally friendly products and processes help support the sustainable development goals by aligning economic growth with ecological responsibility. It enhances efficiency and competitiveness across industries (Arilla-Llorente, Gavurova, Rigelsky, & Ribeiro-Soriano, 2024; Martínez-Falcó et al., 2024). Policy support and green financing further promote such innovation and link environmental progress to broader economic outcomes, including SDG 8 (Chatradhi, 2025c; Arilla-Llorente et al., 2024). Values-centred organisations generally foster cultures that support green innovation, especially in high-impact sectors (Zhao, Rui, & Li, 2024; Bataineh, Abbadi, Alabood, & Alkurdi, 2022).

Despite these insights, gaps remain regarding how specific organisational values directly drive green innovation and measurable environmental outcomes. Existing studies have not fully examined how distinct values shape sustainability practices across industries and cultural contexts (Sulphey, Al-Kahtani, Senan, & Adow, 2023; Opazo-Basáez, Monroy-Osorio, & Maric, 2024; Zhao et al., 2024; Pandithasekara, 2022). Understanding the influence of organizational values on sustainability is essential for developing effective change management strategies that support green innovation, making this gap particularly critical to address. Thus, the study aims to explore the role of organizational values in driving green innovation and improving environmental performance outcomes across different industries, to capture the full spectrum of values-based influences on sustainability practices.

The study makes a unique contribution by investigating the impact of specific organizational values on the adoption of green innovation practices and their subsequent effects on environmental performance. As the first study, to the authors' knowledge, to focus explicitly on this area, it examines how values-centred organizational approaches can drive impactful environmental change. Using a mixed-methods design that combines quantitative surveys with qualitative interviews, this study examines both the measurable and contextual aspects of sustainability-focused values. The findings offer guidance for leaders seeking to build values-driven cultures that support innovation and sustainability, strengthening organisational resilience and competitiveness. The study establishes a clear link between organisational values and green innovation, highlighting value-based change management as an important driver of sustainable innovation.

Values-based organisational theories demonstrate how core values shape sustainable strategies by influencing culture, decision-making, and behaviour (Assoratgoon & Kantabutra, 2023). It shows the importance of aligning organisational values with sustainability goals, with leadership reinforcing trust, learning, and collective responsibility for sustainable practices (Bourne & Jenkins, 2013; Sorndee, Siengthai, & Swierczek, 2017). Integrating sustainability into strategy involves navigating value conflicts, such as balancing financial and environmental priorities, as seen in public-sector efforts to green pension funds (Berg & Olsson, 2023). The theory thus offers a framework for embedding sustainability into core strategies and aligning stakeholder efforts (Chatradhi, 2024; Schwartz, 2011).

Organisational values also underpin environmental responsibility. Firms with strong ecological values outperform others because their cultures support environmentally responsible practices (Haleem et al., 2024). Corporate culture influences how sustainability initiatives are adopted and sustained, fostering shared commitment across the organisation (Jaganjac, Abrahamsen, Oslen, & Hunnes, 2024). Leadership and employee engagement further enhance these efforts, contributing to long-term environmental performance (Dreichuk & Sytnyk, 2024). Sustainability-oriented cultures, rooted in internal values, guide cleaner production methods and broader sustainability outcomes. When supported by green innovation and technology, such cultures strengthen environmental sustainability, stakeholder confidence, and market resilience (Toro & Ripoll, 2024).

This strongly contributes to green innovation. Corporate Environmental Responsibility (CER) supports eco-innovation by easing financing limits, improving governance, and increasing R&D investments (Wu et al., 2024). Green servant leadership strengthens environmental initiatives and green performance (Yu, Abbas, Rizvi, & Najam, 2024). Regulations also drive innovation, as seen in the Mexican automotive industry where compliance encouraged eco-innovation (Chatradhi, 2025d). Green chemistry offers safer alternatives that reduce environmental impacts and address climate challenges (Jain, Awasthi, & Gupta, 2024). Digitalisation further promotes eco-innovation and circular economy practices aligned with sustainability goals (Mishra, Singh, & Rana, 2023).

It is now central to corporate governance, with organisations shifting toward sustainability as stakeholder theory links long-term success to environmental and social engagement (Sabirali, 2024). Employees widely value ethical sustainability, although they differ on its financial impact. CSR strengthens reputation, trust, and efficiency, supported by standards like ISO 14001 and GRI that ensure transparency (Robayo-Avendaño & Prato-García, 2024). CSR and green marketing also address issues such as greenwashing, while regulations and incentives significantly shape corporate sustainability practices (Deshmukh & Tare, 2023). Everyday practices reflect growing social responsibility (Wang, Tuo, Zhang, Tan, & Liu, 2024).

It depends on cultures that promote openness, trust, and risk-taking (Edward & Frinaldi, 2024). Leadership plays a key role in supporting sustainability-focused innovation (Dieguez, 2023). Collaboration and knowledge-sharing enhance green solution development (Zabalaga, 2023). In manufacturing, green learning orientation (GLO) and resource orchestration (ROC) strengthen green product and process innovation (Baquero, 2024). Cultural traits such as individualism and long-term orientation support green innovation, while high power distance may limit it (Xu, Farooq, Alam, & Dai, 2024).

This is increasingly important for sustainable strategies. In Chinese family firms, embedding sustainability balances short-term gains with long-term stability through responsibility and transparency (Wang, 2024). Infrastructure projects with long-term visions align climate goals with financial sustainability (Roulet, 2024). Emerging market multinationals that integrate sustainability improve competitiveness and legitimacy in volatile environments (Gomez-Trujillo, Gonzalez-Perez, & Baena-Rojas, 2023). Climate-transition investment strategies also direct capital toward environmentally responsible sectors, reducing risk and supporting global sustainability (Xiang, Asl, Isfahani, & Vasa, 2024).

It is essential for green innovation. The AMO framework shows that leadership support, organisational systems, and motivation shape green behaviours that improve environmental performance (Ma & Wang, 2024). Involving employees in sustainability decisions enhances initiative effectiveness and commitment (Mishra & Awasthi, 2024). GHRM and green leadership encourage pro-environmental behaviours, with employees more likely to contribute ideas and support sustainability efforts, directly aiding green innovation (Aloqaily, 2023; Alherimi, Marva, Hamarsheh, & Alzaaterh, 2024).

Green innovation adoption plays a key mediating role between organisational values and environmental outcomes, which contributes to sustainability and competitive advantage. Values such as corporate social responsibility (CSR) and green organisational culture (GOC) strongly influence green innovation, which in turn improves environmental performance. CSR initiatives promote green innovation partly through improved financial reporting (Wang & Hussin, 2024), while GOC supports innovation that links culture to competitive advantage (Chatradhi, 2024). In sectors like automotive, green innovation drives the relationship between sustainability practices and firm performance (Maldonado-Guzman, Garza-Reyes, & Pinzón-Castro, 2023). A supportive innovation climate further strengthens environmental sustainability (Alshammari & Alshammari, 2023). Green innovation also mediates the effect of knowledge management on corporate sustainability, showing how organisational knowledge is transformed into environmental benefits (Golubović-Corcione., Veličković, & Fedajev, 2024).

Green innovation, including product and process improvements, improves environmental performance by reducing emissions, waste, and resource use (Martínez-Falcó et al., 2024). Its adoption is driven by environmental ethics, market and stakeholder expectations, and management commitment, supporting a “Win–Win” model where environmental efficiency aligns with business success (Park, Zou, & Liang, 2024). The effectiveness of green innovation varies across countries and sectors, highlighting the need for tailored policies and incentives (Rahmani et al., 2024). Integrating GHRM with innovation practices strengthens long-term sustainability by reducing pollution and supporting environmental goals (Marditama, Yusliza, & Purnomo, 2024). Green innovation has greater impact when implemented through mature, systematic strategies, as shown in Indonesian firms (Chatradhi, 2025b). In China, technological innovation, especially in the secondary sector, significantly improves environmental performance, underscoring the value of differentiated environmental policies (Chen & Jiang, 2024).

Therefore, the study proposes the following hypothesis (Summarised in Figure 1);

The study employs a convergent mixed-methods research design (Creswell & Creswell, 2017), which consists of two distinct yet complementary phases: a quantitative phase followed by a qualitative phase. The convergence of quantitative and qualitative evidence enables triangulation and strengthens explanatory depth by integrating patterns emerging from both phases.

The quantitative phase used a survey-based approach to collect data from organisations across various industries in Canada. A non-probability purposive sampling method was applied to select respondents from small and medium-sized enterprises (SMEs) and micro, small, and medium-sized enterprises (MSMEs), in Canada who were likely to have relevant knowledge about organisational values and green innovation. Participants were recruited through professional networks, email outreach, and online platforms such as LinkedIn. The final sample consisted of 295 respondents from different organisational roles, including senior management, functional managers, and operational staff, with demographics presented in Table 2.

Most participants had over three to five years of experience, ensuring familiarity with their organisation's green innovation practices. The sample covered five key industries that were manufacturing, energy, technology, retail, and food and beverages, providing a broad cross-industry perspective. The survey was administered over a three-month period, from February 2024 to April 2024, using a Google Forms-based platform to collect responses. To support data management, all survey responses were exported directly from Google Forms into secured, password-protected datasets. No personally identifiable information was collected, and all entries were anonymized prior to analysis. Data were screened for missing values, response irregularities, and normality assumptions. Quantitative data screening included checks for missing responses, straight-lining, outliers, and multivariate assumptions prior to model estimation.

The questionnaire was developed by adapting established scales to align with the research objectives and the Canadian SME context. Specifically, the Green Innovation Scale (GIS) developed by Chen, Lai, and Wen (2006) and the Sustainability-Related Value Scales, adapted from Egri and Herman (2000), were utilized. A five-point Likert scale was used to measure responses, ranging from 1 = Strongly Disagree to 5 = Strongly Agree for all items.

The data analysis was conducted using SmartPLS 4 software (Ringle, Wende, & Becker, 2024) to assess the proposed relationships. PLS-SEM allows for the assessment of both direct and indirect effects, making it ideal for testing the hypothesized relationships between organizational values, green innovation adoption, and environmental performance. The measurement model exhibited adequate reliability and validity (Table 1), with Cronbach's alpha and composite reliability (CR) values surpassing the minimum threshold of 0.6 (Hair, Matthews, Matthews, & Sarstedt, 2017). Multicollinearity, indicator reliability, discriminant validity, and convergent validity were assessed following Hair et al. (2017). Structural model evaluation included bootstrapping with 5,000 subsamples. The quantitative phase forms the foundation for the subsequent qualitative analysis, providing a clear framework for exploring the relationships and testing the study's hypotheses.

Following the quantitative survey, participants were invited to volunteer for the qualitative phase of the study, which involved in-depth semi-structured interviews. The 2^nd phase aimed to gain deeper insights into the experiences, challenges, and facilitators organizations face when trying to align their core values with green innovation initiatives.

For the qualitative phase, a purposive sampling strategy aligned with Patton's (1999) framework was adopted. Patton outlines 16 purposeful sampling approaches; this study used a combination of criterion sampling (participants must have direct involvement in sustainability or innovation decisions) and intensity sampling (participants with substantial practical experience capable of providing rich descriptions). Of the 295 survey respondents, 28 volunteered for the qualitative phase, from which 14 were selected based on their extensive experience, particularly in senior or functional management roles. These individuals were chosen because they have a broader understanding of organisational values and how these shape the adoption of green innovation. Following Guest, Bunce, and Johnson (2006), who note that 88–97% of themes typically emerge by the 12th interview, selecting 14 participants was considered sufficient to achieve thematic saturation.

Interviews were conducted over an eight-week period between July 2024 and June 2024, each lasting 45–60 minutes. All interviews were held online via Google Meet, and participants were informed about the study's purpose, voluntary participation, and confidentiality before beginning. To ensure anonymity, each respondent was labelled as R1 through R14 in the final analysis. Digital recordings were stored in encrypted folders, and transcripts were checked manually for accuracy against recordings before coding.

The interview questions centred on several key areas to explore the role of organizational values in driving green innovation and the challenges and opportunities this alignment creates. The questions asked during the interviews centred on the following broad themes:

1. Organizational Values and Sustainability: How core organizational values related to sustainability influence decision-making and green innovation initiatives.

2. Challenges in Implementing Green Innovation: The obstacles organizations face when aligning their values with green innovation, including resource limitations, cultural barriers, and market conditions.

3. Facilitators of Green Innovation: Factors that support the successful integration of green innovation within the organization, such as leadership support, organizational culture, and external partnerships.

4. Environmental Performance: How green innovation initiatives have contributed to improving environmental performance and the overall sustainability goals of the organization.

5. Strategic Alignment: The extent to which organizational values and strategies are aligned with green innovation goals and sustainable development.

Trustworthiness of the qualitative analysis was supported through analyst triangulation, iterative memoing, and maintenance of an audit trail. Coding decisions were reviewed by an independent qualitative researcher to enhance credibility and confirmability. The interviews were audio-recorded to capture accurate responses, transcribed verbatim, and analysed using a thematic analysis approach (Braun & Clarke, 2006). Data analysis followed Braun and Clarke's six-step framework: familiarization, initial coding, theme development, theme review, theme definition, and final reporting. Data management included iterative memo-writing, maintenance of an audit trail, and systematic comparison across transcripts to ensure analytical rigour. All participants provided informed consent. The transcribed data were analysed using Microsoft Word software, where themes and sub-themes were manually coded and organized into categories. Thematic analysis was performed in a systematic manner to ensure that the analysis was grounded in the participants' own words and experiences.

The demographic profile of the respondents in Table 2 reveals a well-distributed sample across job roles, with senior management representing the largest group. Most respondents have significant work experience, with a majority falling into the 6–10 years and 10+ years categories, corresponding to the 31–50 age range. Gender distribution shows a slightly higher proportion of male respondents compared to females. These findings reflect a seasoned and mature workforce, predominantly from mid to senior-level roles, providing rich insights into the adoption of green innovation practices across organizations.

The findings, as seen in Table 2, show strong organisational engagement in green initiatives, with 72.4% of respondents reporting prior experience with green innovation, indicating that sustainability is becoming embedded in business operations. Nearly 40% described their organisations as “very involved” in sustainability, reflecting a high level of environmental commitment. Also, 41.4% reported regular environmental training, demonstrating efforts to build employee awareness and participation. However, 6.9% noted that their organisations never conduct such training, suggesting opportunities to strengthen sustainability culture in certain sectors.

The organizational demographics, as seen in Table 3, indicate a diverse sample, with strong representation from Manufacturing (24.1%) and Food & Beverages (19.7%). SMEs make up 58.6% of the sample, while MSMEs account for 41.4%. Most organizations employ 101–250 people (31.0%) and have been operating for 10–20 years (34.5%). This distribution provides a broad view of organisational behaviours across sectors and varying stages of business maturity.

The model fit indices, as seen in Table 4, indicate an acceptable overall fit for the structural model. SRMR values for the saturated (0.098) and estimated (0.101) models fall within the recommended 0.10 threshold, showing minimal discrepancies between observed and predicted values (Hu & Bentler, 1999). The d_ULS values (5.065 and 5.352) also indicate low levels of discrepancy. The chi-square statistic (973.223) and the NFI value of 0.905, which meets the 0.90 benchmark, further confirm that the model provides a strong and reliable fit for interpreting the hypothesised relationships.

The path analysis in Table 5 shows that Environmental Responsibility (ER) has a positive, moderate effect on GIA (β = 0.292; f² = 0.306), indicating that environmentally responsible organisations are more likely to adopt green innovations. Innovation Orientation (IO) demonstrates the strongest influence on GIA (β = 0.483; f² = 0.708), highlighting the importance of an innovation-driven culture. Long-Term Orientation (LO) also significantly predicts GIA (β = 0.278; f² = 0.272), showing that organisations with long-term sustainability goals tend to engage in green innovation.

Employee Engagement (EE) and Social Accountability (SA) show minimal impact, with EE displaying a low coefficient (β = 0.064; f² = 0.038) and SA showing a negative, negligible effect (β = −0.040; f² = 0.005). In contrast, the relationship between GIA and EP is strong and positive (β = 0.905; f² = 4.502), indicating that adopting green innovation substantially improves environmental performance. Overall, all hypotheses are supported except H2 and H5, with IO, ER, and LO showing the strongest effects on GIA, and GIA demonstrating a major contribution to EP.

The R-square values in Table 6 indicate a strong explanatory power of the model. For Environmental Performance, the R-square value of 81.8% of the variation in environmental performance can be explained by the variables in the model, highlighting a robust relationship between green innovation adoption and environmental outcomes. Similarly, Green Innovation Adoption shows an R-square value indicating that 90.4% of the variance in green innovation adoption is accounted for by the independent variables, demonstrating that organizational values play a substantial role in driving green innovation. Both constructs exhibit high model fit, emphasizing the predictive power of the variables in explaining sustainable organizational practices.

Figure 2 gives a better understanding of the data and its distribution.

Upon taking a closer look at Table 7, the findings show that organisations with strong sustainability values consistently prioritise environmental responsibility in their decision-making. These values are reflected not only in policy but also in daily operations, where green initiatives are embedded in routine processes. More than 85% of respondents reported that sustainability values significantly influence decisions, indicating that these principles extend beyond corporate statements and are integrated into strategic and operational frameworks. Additionally, 70% stated that eco-friendly priorities shape their organisation's long-term strategic goals, making sustainability a core component of future planning. One respondent shared, “Sustainability is always a consideration in our decision-making process, whether it's choosing suppliers or designing new products. It's embedded in how we operate.” This highlights a fundamental shift where sustainability is not a secondary concern but a core driver in shaping both operational and strategic outcomes.

Despite a strong commitment to sustainability, many organizations struggle to implement green innovations due to limited financial and technical resources. As one interviewee stated, “We want to invest in greener technologies, but the budget just isn't there. It's a tough balance between doing the right thing and staying within financial constraints.” The findings show a clear tension between sustainability goals and the practical challenges of limited budgets and expertise. Around 60% of respondents identified financial constraints as a major barrier, indicating that although sustainability is often prioritised strategically, the investment needed for green technologies is not always available. On top of that, 55% cited a lack of technical expertise, emphasising its importance for assessing and implementing green innovations. Without the necessary skills or resources, many organisations struggle to realise their sustainability ambitions. These insights show that while commitment to sustainable innovation exists, capability gaps remain a significant obstacle. Strengthening financial and technical capacity through targeted investments could greatly enhance organisations' ability to adopt effective green innovations.

The findings also highlight the strong influence of organisational culture and leadership support in enabling green innovation. About 75% of participants noted that leadership support is critical to the success of sustainability initiatives, while 68% stated that a culture aligned with sustainability goals drives green innovation efforts. Leaders who actively demonstrate their commitment to sustainability help set expectations across the organisation, motivating employees to prioritise and engage in green practices. As one participant shared, “Our leadership doesn't just talk about sustainability—they live it. That inspires the rest of the team to follow suit.” This underscores the role leadership plays in endorsing and also embodying sustainability values, creating a trickle-down effect that influences organizational culture.

The findings show that integrating green innovation into long-term strategic planning is crucial for making sustainability a core organisational priority rather than a peripheral goal. As one respondent noted, “We've made sustainability a key part of our business model, and now we track progress with clear sustainability KPIs. Without this, it's too easy for green efforts to fall by the wayside.” This reflects the importance of embedding sustainability into formal strategy and tracking it systematically. In support of this, 72% of respondents reported that green innovation is incorporated into long-term planning, and 65% emphasised the need for clear sustainability metrics to align innovation with organisational goals. The trend thus indicates that organisations increasingly view green innovation as a business imperative that drives both environmental impact and financial performance. By linking sustainability to measurable indicators and integrating it into strategic planning, companies can monitor progress, identify gaps, and maintain sustainability as a central focus for long-term success.

While ethical values shape an organisation's sustainability outlook, they do not always serve as the main drivers of green innovation. Although 50% of respondents agreed that ethical values influence decision-making, only 30% believed that social accountability directly drives innovation. This suggests that ethical ideals are present in organisational culture but do not consistently translate into actionable innovation. As one respondent explained, “Ethics are part of our corporate culture, but they don't always push us to innovate. We do it because it's the right thing to do, but also because it helps us meet regulatory standards and customer expectations.” This shows a gap between ethical intentions and the practical factors, such as regulations and market expectations, that often motivate green innovation. The findings highlight the need to better align ethical values with concrete innovation drivers to strengthen the consistency and effectiveness of sustainability initiatives.

External influences, mainly regulations and partnerships, play a major role in directing green innovation. While internal values matter, respondents noted that external pressures often accelerate sustainable practices. About 65% identified regulatory requirements as key motivators, and 55% stated that partnerships support green innovation through resource sharing. Together, these factors provide both the impetus and capacity needed for sustainability initiatives. As one participant remarked, “Regulatory changes have pushed us to adopt more sustainable practices faster than we would have on our own. Having partners who share similar values has helped, too.” This underscores the importance of aligning internal sustainability efforts with external drivers to create a more effective path toward green innovation.

Organisational readiness for change plays a major role in effectively adopting green innovation. About 78% of participants stated that fostering a culture of innovation is essential for integrating new green technologies, and 62% emphasised the importance of continuous improvement for adapting to evolving sustainability strategies. As one participant shared, “Being open to new ideas and constantly looking for ways to improve is part of our culture. It makes adopting green technology much easier.” These insights show that organisations with an innovation-oriented culture are more agile and better able to integrate green technologies. Readiness for change depends not only on resources but also on creating an environment that encourages learning, experimentation, and adaptation. Such cultures face less resistance and implement sustainability initiatives more effectively, aligning with the broader trend that organisations committed to continuous improvement are more successful in adopting green innovations.

The combined quantitative and qualitative findings show that environmental responsibility and an innovation-oriented culture are the strongest drivers of green innovation adoption. Organisations that actively prioritise sustainability and are open to change integrate eco-friendly practices more effectively. This aligns with the study's aim of identifying key drivers and reinforces that a proactive commitment to sustainability and technological adaptation plays a central role in fostering green innovation. Long-term orientation also shapes green innovation efforts. Organisations that embed sustainability into their long-term strategies are better able to integrate green practices consistently rather than treating them as isolated initiatives. Clear performance metrics such as KPIs further support this process by helping organisations track progress and ensure that sustainability remains a continuous organisational priority. The study also found that, although social accountability influences decision-making, it has a weaker direct effect on green innovation than expected. Instead, external pressures, such as regulations, market demands, and customer expectations usually serve as stronger motivators for adopting green technologies. While ethical values matter, organisations are more likely to implement green innovations when external and competitive forces require them. Organisational culture emerged as another critical factor. Leadership that actively supports sustainability and promotes continuous improvement significantly enhances green innovation adoption. However, financial and technical resource limitations remain major barriers, even in organisations with strong cultural support. The findings also highlight an innovation-oriented mindset which is marked by openness to new ideas and continuous learning, and it enables organisations to adapt more easily and integrate emerging green technologies. This readiness for change positions sustainability as an evolving, rather than static, organisational goal.

Our study represents a novel contribution to the literature by being the first to explore the connection between OV and green innovation adoption. Theoretical implications now extend to societal outcomes by clarifying how value-driven organisational behaviour can influence environmental quality, resource use patterns, and long-term sustainability trajectories at the community and industry levels. Theoretical implications are significant. The study provides a more integrated framework for understanding how organisational values, specifically sustainability, social responsibility, and long-term orientation, catalyse green innovation.While prior work treated these components separately, their interaction is critical for understanding how organisational behaviour translates into measurable sustainability outcomes. However, this study highlights their combined effect, providing a more holistic perspective on how organisational culture and leadership influence the adoption of green practices.

Our research advances understanding by revealing that green innovation adoption directly contributes to environmental performance, such as waste minimisation and improved resource efficiency. These outcomes carry broader societal implications, including reduced pressure on municipal waste systems, lower community-level pollution burdens, and improved alignment with national climate and sustainability commitments. The study also demonstrates the theoretical and operational relationship between organisational values and green innovation, with real-world outcomes regarding environmental benefits. This contribution strengthens the theoretical discourse around the importance of organisational culture in driving environmental sustainability.

For managers and industry leaders, the findings offer actionable guidance. Embedding sustainability into organisational culture and treating it as a strategic priority is essential, with leadership playing a central role in fostering an innovation-friendly environment where green initiatives are properly supported and aligned with long-term goals. The study also underscores the need for a clear sustainability roadmap with measurable targets and performance metrics to ensure continuous integration and improvement of green innovations. While ethical values influence decision-making, the results show that regulatory demands and market pressures more strongly drive green technology adoption. Managers should therefore align ethical commitments with innovation strategies so sustainability becomes a core element of the organisation's long-term identity rather than a response to external pressures.

The findings also carry broader implications for improving environmental performance across industries. By cultivating a green organisational culture and focusing on innovation, firms can integrate sustainability more effectively into their operations. These insights can help policymakers and industry leaders design supportive frameworks that encourage green innovation and embed sustainability as a central component of organisational strategy. The findings signal that widespread adoption of sustainability-oriented values within organisations can accelerate broader transitions toward green industries, influence labour market expectations around environmental responsibility, and support policy efforts aimed at decarbonisation and circular economy development. The study demonstrates that the cumulative effect of value-driven green innovation can contribute to national sustainability objectives, reduce community-level environmental risks, and create more resilient socio-economic systems.

Our study offers valuable theoretical insights and practical implications, providing a clear path for organisations to align their values with green innovation strategies. The findings help define the critical elements, culture, leadership, and long-term planning, necessary for successfully adopting green innovation, thereby driving environmental sustainability and business competitiveness.

The study examined the key factors influencing green innovation adoption, with a focus on how organisational values (OV) shape environmental performance and sustainability. The findings advance understanding by showing that sustainability-oriented cultures, committed leadership, and long-term strategic planning play central roles in integrating green innovation into organisational processes. Despite these contributions, several limitations must be noted. The sample was drawn from a specific group of organisations, which may limit the generalisability of the results to other sectors or regions. Future research could explore different industries or conduct cross-cultural comparisons to examine how organisational values and green innovation adoption vary across contexts. Also, while this study emphasises the role of organisational values, other factors, such as resource constraints, regulatory environments, and technological developments, these may also influence the adoption of green innovation and should be considered in future work.

Future studies could explore these factors in greater depth to provide a more comprehensive understanding of the drivers and barriers to green innovation. Another limitation of this study is the reliance on self-reported data from managers and employees, which could be subject to biases such as social desirability or selective memory. Future research could employ a more diversified data collection approach, such as case studies, field experiments, or longitudinal surveys, to triangulate the findings and provide a more robust understanding of the relationship between organizational values and green innovation. Research is also needed to examine how organisational values evolve under external shocks, such as regulatory tightening, economic crises, or technological disruptions, and how these shifts alter green innovation trajectories. While this research highlights the role of organisational values, other factors such as resource constraints, regulatory environments, and technological advancements could also influence green innovation adoption. Further research should also investigate the societal-level outcomes of organisational green innovation, such as, local economic resilience, job creation within green sectors, and contributions to regional climate targets. Evaluating these broader impacts will help determine whether micro-level organisational actions genuinely translate into macro-level sustainability gains.

The study is a stepping stone for future research into integrating sustainability within organizational practices, providing a comprehensive framework for understanding how organizational values can be harnessed to drive green innovation. As the world increasingly turns its focus towards sustainability, those organizations that embed green innovation into their strategic DNA will not only thrive in the face of regulatory and market pressures but will lead towards a more sustainable future for all. As sustainability transitions accelerate globally, understanding the organisational–societal interface will be essential for ensuring that green innovation contributes not only to firm competitiveness but also to inclusive and equitable environmental progress.

The authors acknowledges the use of artificial intelligence tools for language improvement and grammar checks during the development of the article. Grammarly A.I. was utilized solely for enhancing linguistic clarity and correctness, and not for content creation.

We would like to extend our heartfelt gratitude to the respondents who generously shared their time, experiences, and insights for this study.