Green Innovation And Its Performance:

Mexico and China are developing countries with an important manufacturing industry,but are among the most polluted countries in the world.As a part to solve their environmental issues both countries are requesting companies to do green innovations on their processes and products,but companies are concerned if this could bring financial and environmental performance to them.With the purpose of finding out the impact of green innovation activities on the manufacturing companies' performance this research was conducted.Green innovation is measured by analyzing a company's green process innovation and how it has been able to carry out green product innovation,on the other hand,the company's performance is measured by the financial performance and the environmental performance of the company.A survey was sent to companies in Mexico and China to research the relation between green innovation and the companies' performance.To analyze the collected data of this survey,correlation and regression analysis were performed for China and Mexico separately.The results of the study indicate that in both countries green innovation has a positive effect on manufacturing companies? financial and environmental performance.Green process innovation is more effective in Mexico,while green product innovation has a bigger effect in China.Lastly,in order to analyze the results and explain the difference of the success of green product innovation and green process innovation in both countries,a comparative analysis was also performed.The management implications of this study are that the effects of green innovation on manufacturing companies' performance can depend of the country where you are located.Companies from certain countries focus more on product innovation,and other ones on process innovation like the case of China and Mexico.Therefore,in order to achieve the performace of the manufacturing company,management should focus on both product and process innovations simultaneously.