The effects of organizational factors on green new product success: Evidence from high-tech industries in Taiwan

Yi Chun Huang, Yen Chun Jim Wu

Research output: Contribution to journalArticlepeer-review

112 Citations (Scopus)


Purpose: This study seeks to identify the factors influencing the performance of green new product development. Additionally, an examination of the relationship between green performance and financial performance is carried out. Design/methodology/approach: The study employed survey instrument data collected from 181 companies in hi-tech industries including electrical, electronics, and information industries of Taiwan. Exploratory factor analysis and multiple regressions were used for hypothesis testing. Findings: Corporate environmental commitment, environmental benchmarking, R&D strength, and cross-functional integration significantly positively influenced financial performance. Additionally, green product innovation performance has a positive effect on financial performance. Research limitations/implications: A longitudinal research design is necessary to validate these claims of causality. Furthermore, since respondents provided data on both the independent and dependent variables, there is the possibility that the correlations were inflated as a result of single-source bias. Practical implications: The identification of the specific actions of both top management support and environmental benchmarking must be implemented for green new product development to occur. Additionally, successful GNPD needs to be underpinned by an environmental product strategy that is explicit, clearly defined, and linked to the overall strategy of the firm. Social implications: Taiwan's rapid industrialization has generated numerous environmental problems. Moving forward, the Taiwanese government should implement advanced green management concepts to keep abreast of the global environmental movement. Enterprises have to be dedicated to developing GNPD; achieving GNPD success will bring great challenges for firms in Taiwan. Originality/value: The integration of innovation, new product development, and green management philosophies is explored in order to develop and empirically test a theoretical framework of the organizational factors. This paper is the first to conduct a large sample survey of the hi-tech industries including the electrical, electronics, and information industries in Taiwan to examine organizational factor effects on GNPD success, and the relationship between green product innovation performance and financial performance.

Original languageEnglish
Pages (from-to)1539-1567
Number of pages29
JournalManagement Decision
Issue number10
Publication statusPublished - 2010 Nov
Externally publishedYes


  • Innovation
  • New products
  • Taiwan

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Management Science and Operations Research


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