Musytari : Jurnal Manajemen, Akuntansi, dan Ekonomi

Vol. 16 No. 12 (2025): Musytari : Jurnal Manajemen, Akuntansi, dan Ekonomi
Articles

GREEN INNOVATION AND OPERATIONAL EFFICIENCY: DOES LOWER CARBON EMISSIONS ALWAYS LEAD TO PROFITABILITY?

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  • Zhafirrah Rosalinda,
  • Mukhtaruddin
Zhafirrah Rosalinda
Sriwijaya University
Bio
Mukhtaruddin
Sriwijaya University
Bio

Published 2025-05-13

Keywords

  • Green Innovation,
  • Operational Efficiency,
  • Carbon Emissions,
  • Profitability,
  • Sustainability
Copyright Notice

How to Cite

GREEN INNOVATION AND OPERATIONAL EFFICIENCY: DOES LOWER CARBON EMISSIONS ALWAYS LEAD TO PROFITABILITY?. (2025). Musytari : Jurnal Manajemen, Akuntansi, Dan Ekonomi, 16(12), 141-150. https://doi.org/10.2324/gyx1gt26

Abstract

This study examines the relationship between green innovation, operational efficiency, and corporate profitability, focusing on carbon emission reduction. Using the Resource-Based View (RBV) and Stakeholder Theory approaches, this research explores how investments in green innovation can enhance operational efficiency and provide a competitive advantage for companies. While theoretically, reducing carbon emissions can improve efficiency and lower production costs, its impact on profitability is not always direct. High initial investment costs, regulatory complexities, and varying market demand are key factors influencing the success of this strategy. A review of the literature indicates that while some studies support a positive relationship between green innovation and profitability, others suggest that economic benefits only materialize in the long term. Therefore, adopting sustainability strategies requires a comprehensive approach that considers government incentives, industry pressures, and consumer preferences to ensure success in increasing profitability through green innovation and operational efficiency.

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