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Achieving sustainable business outcomes through eco-innovation adoption in manufacturing firms of Pakistan: a higher-order PLS-SEM approach

Masoodul Hassan & Sadia Shaukat

International Journal of Innovation Science2026https://doi.org/10.1108/ijis-10-2024-0283article
AJG 1ABDC B
Weight
0.37

Abstract

Purpose Grounded in the natural resource-based view, this study aims to investigate how eco-innovation drivers influence eco-innovation adoption and competitive benefits, which, in turn, foster sustainable business outcomes in Pakistan’s manufacturing sector. It also examines the moderating roles of firm age and firm size. Design/methodology/approach Adopting a positivist philosophy and deductive, quantitative approach, data were collected from 232 manufacturing managers via a cross-sectional online survey. A higher-order reflective–reflective measurement model was specified, estimated and validated using partial least squares structural equation modeling (PLS-SEM). Findings Eco-innovation drivers significantly shape both eco-innovation adoption and competitive benefits. Competitive benefits emerged as the strongest direct predictor of sustainable outcomes. Both eco-innovation adoption and competitive benefits mediate the path between eco-innovation drivers and sustainability performance. Firm age positively moderates the link between competitive benefits and sustainable outcomes, while firm size shows no significant effect. Research limitations/implications This study enriches eco-innovation paradigm by mapping how eco-innovation drivers initiate eco-process, product and organizational innovations that yield competitive benefits and sustainable performance, moderated by firm age in an emerging-economy context. The higher-order model enhances measurement rigor; however, generalizability may be limited due to the modest sample size. Practical implications Managers should mobilize a comprehensive set of eco-innovation drivers to accelerate innovation adoption and secure competitive and sustainability gains. Accounting for firm age dynamics may further amplify these benefits. Originality/value Applying a higher-order PLS-SEM framework, this study presents an integrated examination of eco-innovation drivers, eco-innovation adoption, competitive benefits and firm age as determinants of sustainable business performance in the manufacturing sector of emerging economy.

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https://doi.org/https://doi.org/10.1108/ijis-10-2024-0283

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@article{masoodul2026,
  title        = {{Achieving sustainable business outcomes through eco-innovation adoption in manufacturing firms of Pakistan: a higher-order PLS-SEM approach}},
  author       = {Masoodul Hassan & Sadia Shaukat},
  journal      = {International Journal of Innovation Science},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/ijis-10-2024-0283},
}

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.