IJSRP, Volume 15, Issue 7, July 2025 Edition [ISSN 2250-3153]
Balogoun Oluwafemi Adediran Ulrich, Rujun Xu
Abstract:
The study explores the influence of green innovation on corporate financial performance. Green innovation (GI) has emerged as a critical driver of corporate sustainability and performance, influencing financial performance through cost efficiency, regulatory compliance, brand differentiation, and market expansion. This qualitative study which utilized a sample of 100 participants drawn from 5 selected firms in Cameroon which embraced green innovation explores the multifaceted relationship between green innovation and corporate financial performance (CFP), synthesizing insights from academic literature, case studies, and industry reports. The study identifies key mechanisms through which GI enhances profitability and market differentiation through cost reduction and operational efficiency, reduces risks, and fosters long-term competitiveness. Findings suggest that while initial investments in green innovation may be substantial, the long-term financial benefits such as improved operational efficiency, enhanced stakeholder trust, and access to green markets often outweigh costs. However, the financial impact varies across industries, firm sizes, and regulatory environments. The study concludes with strategic recommendations for firms seeking to optimize the financial returns of their green innovation initiatives.