1. School of Business Administration, Shandong University of Finance & Economics, Jinan, China; ahmadraza49898@live.com
2. Instituto de Ciencias Aplicadas, Facultad de Ingeniería, Universidad Autónoma de Chile, Temuco, Chile; juanehsan@gmail.com
3. University of Lahore, Pakistan; akmalirfan39@gmail.com

*             Correspondence: ahmadraza49898@live.com

Keywords: green innovations, product, service, system performance, green technologies

1. INTRODUCTION

An important factor in driving a nation to attain sustainable development goals is the manufacturing sector. Even if it has a significant impact, the manufacturing sector nevertheless faces a number of economic, social, and environmental problems. Due to factors like environmental pollution, product utilization, global warming, depletion of natural resource supplies, and other problems with industrial waste management, the manufacturing sector struggles to comply with environmental laws and regulations [1]. For the manufacturing sector to pursue sustainability, more significant manufacturing sustainability changes are required [2]. The Triple Bottom Line Sustainability (TBLS) approach is popular for enhancing economic, social, and environmental performance [3]. To encourage organisations in their current efforts at green practises by adopting clean production and open innovation in the manufacturing sector towards Sustainable Manufacturing (SM), it is necessary for understanding and awareness from all stakeholders [4]. Reviewing the viability of green practises in the industrial industry is difficult. According to recent studies, green manufacturing practises aim to minimise production’s impact on the environment while maximising production efficiency [5]. This is in response to the public’s demand for more environmentally friendly service products [6]. Go Green campaigns should be run in order to promote the development of manufacturing [7]. Green manufacturing practises (GMP) have the potential to increase TBL sustainability, reduce carbon emissions, and protect the environment while using less energy and time [8]. Implementing green practises can greatly reduce and enhance the performance of carbon emissions through the manufacturing structure, which is less and has a large potential for sustainable environmental issues [9]. Increasing competitive advantage through organizational culture and a wide range of organizational knowledge and innovations [10], increasing consumers’ willingness to pay for a friendly product environment and promoting green products, and encouraging organisations to adopt green innovation as the creation of green products that are environmentally friendly are all ways to implement GMP. If properly applied, GMP should reduce waste and pollution [11]. By reducing the quantity of trash produced at its source, pollution prevention practises (PPP) aim to reduce the amount of garbage that will be released into the environment [12]. Because GPI can impact market demand and company performance, peak management (TMC) must embrace the initiative and be committed to it organizationally [13]. It is possible to estimate the current market share for eco-friendly items by using green products as incentives to promote green consumption [14]. In order to meet the demand for community services to adopt a green environment, businesses must also focus on providing sustainable services. In order to achieve this, they must implement green service innovation (GSI) [15]. In order to increase competitive advantage through the development of environmentally friendly products, businesses should use strategic differentiation [16]. As a result, it is imperative to develop products with green and ground-breaking environmental attributes. Although GSI is a relatively new concept, few businesses have adopted green service innovations. In order to provide numerous opportunities in today’s competitive businesses [16], organisations must incorporate green practises into the Sustainability of Product and Service Systems (SPSS), one of the product and service innovation models [17]. The social well-being, economic success, and ecosystem of our world are all significantly impacted by SPSS (TBLS) [18]. By providing environmentally friendly green products [19] and enhancing their business performance as a sustainable product-service system performance (SPSSP), SPSS can assist in achieving better customer satisfaction of environmental attention. As a result, the organisation promotes environmentally friendly business practises. This shows how crucial it is to take action to develop organisational capabilities and the necessity for TMC to have specific competences that guarantee the adoption of green practises.

2. LITERATURE REVIEW

In recent years, global experts have revealed that sustainable manufacturing is a highlight in itself, in the development goals of sustainable manufacturing should be encouraged by carrying out green practices [19] because it can reduce ecological damage and improve the performance of current business operations [20]. The company has sought to conduct research and develop environmentally based green innovations [21] by conducting GPSI [22], Green product innovation has been recognized as one of the key factors to achieve growth, environmental sustainability, and a better quality of life [23]. Green products have a competitive advantage and the success of new products that are environmentally friendly [24]. Green service innovation capabilities enable organizations to achieve competitive advantage and sustainability of their business [25]. Research on GPSI in certain domains in the manufacturing industry [26], which has implemented green practices or is in progress to find out how far the manufacturing industry is towards sustainable manufacturing. In the implementation of GPSI in the tire industry, GPSI can improve new product processes or sustainable process systems, improve clean production process systems, reduce CO₂ emissions from the entire value chain [27], and develop innovative environmentally friendly materials in product design [28], so with green services able to expand services based on concern for the environment, offering new customer service practices based on concern for the environment [29]. Therefore, companies should use strategic differentiation to help improve company performance by creating environmentally friendly products with GPSI implementation as an impetus for sustainability.

3. RESEARCH METHODOLOGY

The purpose of this study is to examine the impact of green practices from the determinants of GPSI success in implementing sustainable development goals with SPSSP. This study considers three capabilities, namely TMC, PPP, and PSP. The development and validation of models for measuring SPSSP involve the following stages: theoretical exploration of green practices and expert opinions: data collection, questionnaire design, and surveys presented. The study uses structural equation modeling(SEM). For measurements, the study created a 5-point Likert scale questionnaire, from ‘disagree’ (1) to ‘strongly agree’ (5). The study adopts all measurement items from the existing literature partially modified or modified completely by adjusting the actual conditions of sustainable manufacturing green practices. The survey was targeted at individual tire manufacturing industry companies, asked to address issues related to the green practices of the manufacturing industry. The survey was addressed to professional employees for sample collection, seven tire manufacturing industry companies were selected that were declared to have been or are still in the process of implementing green practices. Data collection for two months through online and offline interview interactions, then recapitulating the results of data collection to be used as a questionnaire and distributed through Google form. Some of the main challenges faced in this study are getting access to tire manufacturing companies because the team manager is difficult to find and limited time. However, with perseverance, as many as 300 questionnaires were successfully sent. A total of 245 questionnaires were returned, while forty incomplete questionnaires were eliminated. A valid response is 205. The initial response rate was 81% of responses, 68% of which were declared valid. So, a total of 205 responses will be analysed. Because this research is explorative, the content is formative construction and aims as a significant capability [30] in continuous implementation. Therefore, this study used PLS-SEM to analyse the data. PLS-SEM is a soft sensing technique that provides strong results and does not require restrictive assumptions such as data normality, observational independence, and metric uniformity variables [31]. To present modeling done with G*Power 3.1 and SmartPLS 4 Software. In model analysis measurements, the first step is to determine the minimum sample size amount with G*Power [32]. With G*Power the required sample size is calculated as a function of the user-defined value for the significant level required α, the desired statistical strength of 1-β, and the size of the detected population effect [33]. Therefore, this study refers to [34] as a parameter for calculating the minimum sample: test family = f-test; statistical test = multiple linear regression, fixed model and deviation R2 from zero; test power = 80%; error probability = 5%, and effect size = 15% is medium. The results of the minimum sample calculation with G*Power as recommended above that the analysis of this model requires a minimum sample of 68 respondents. The study provided 205 respondents. So, the sample is very sufficient for analysis. The next step is to test the reliability and validity of the data with the PLS-SEM method. The reliability test consists of Cronbach’s alpha and Composite Reliability (CR), while the validity test consists of convergent and discriminant. In reliability Testing, measuring cases or phenomena of the likelihood of inconsistent occurrence, the minimum alpha threshold of the coefficient value is 0.6 [35], if an item has less than the cut-off value, it is recommended to be omitted from the variable.  Researchers used a measure of compatibility with SRMR. According to [36], SRMR can be used to identify fitness models where SRMR should be < 0.08 since the current value is 0.071.

4. STRUCTURAL MODEL ANALYSIS AND DISCUSSION

This study assumes eight hypotheses to explore the relationship between TMC, PPP, PSP, SPSSP, and GPSI as GPSI mediating effects. Based on empirical findings and expert opinions on green practices. Further analysis of structural models, used to test hypotheses after examination of reliability and validity tests. The results of hypothesis testing are shown in Figure 3. The results of the model evaluation using beta and significant values, namely t-value = 1.96 (p = 5%), which means that the significant value (p < 0.05) hypothesis is accepted or rejected. The results interpret that all direct relationships are accepted except PPP has reached a t-value of>1.96, indicating a significant relationship because the p-value<0.05. But another result is that PPP has a positive effect as well as TMC and PSP on GPSI as mediation. Showing that TMC, PPP, and PSP positively impact GPSI can achieve a significant t-value>1.96 relationships. The relationship between GPSI and SPSSP is very important.

Figure 1: Structural Equation Model

The effect of TMC, PPP, and PSP on GPSI was found to be β-values of 0.375, 0.139, and 0.193 and t-values of 3.199, 1.969, and 2.025. In addition, the effect of TMC, PPP, and PSP on SPSSP showed β-values of 0.377, 0.196, 0.063 and t-values of 5.062, 1.969, 0.912, thus, direct influence on SPSSP hypotheses is accepted unless PPP t-values of<1.96 are less supportive. Thus, the relationship between GPSI and SPSSP showed a β-value of 0.414 and a t-value of 3.742 direct effects. The results of the direct effects of TMC, PPP, and PSP have a significant effect on GPSI, and the effect of GPSI has a significant effect on SPSSP. Another result, PPP did not have a significant effect on SPSSP. Based on empirical studies, this study explores the relationship between TMC, PPP, and PSP with the mediating effects of GPSI. With this, the authors integrate the framework taking into account the characteristics of the company to offer a theoretical framework of green practice leading to the SPSSP. This study uses a field survey of tire manufacturing industries that have implemented or are in the process of the green manufacturing practice. Industry professional employees are selected to participate in validating the research framework. The findings confirm the positive relationship between TMC, PSP, and SPSSP, unless PPP does not affect directly, PPP must first be mediated by GPSI. For this reason, the GPSI variable mediates a positive relationship with TMC, PPP, PSP, and SPSSP. The study discussion is as follows: The first significant variable, TMC has a positive effect, the findings suggest that the effect of TMC on constructive support is critical as the company’s drive to green change with GPSI. The results follow previous studies. [37] Describes the TMC as an organisation capable of manoeuvring to promote TBL sustainability, and [38] argue in such a way. According to the authors mentioned above, the TMC ensures policies and strategies to establish green practices such as GPSI to support SPSSP. In establishing GPSI, TMC allocated the right resources to introduce green practices as support for sustainability on target in GPSI implementation. Research related to manufacturing green practices shows that GPSI can improve social welfare and reduce environmental pollution [29], leading to SPSSP towards SM development. In addition, the study findings show that PSP has a significant influence on GPSI and SPSSP. The PSP is part of the green manufacturing framework as the most effective driver in industrial waste management. These results are by research conducted by [30], where the author shows that PSP such as redesigning sustainable products and processes, using environmentally friendly energy, and doing Eco-efficiency, can significantly affect GPSI and SPSSP. Another finding made by [31] is that PSP can increase service awareness green environment. To reduce the gap in action value. Waste management strategies on product design to ensure continuous improvement capabilities, further supporting the circular economy in sustainable development goals. Therefore, organisations need to change practices from conventional to green practices, such as PSP changing sustainable processes and products, and can attract the attention of consumers of traditional purchases to the purchase of environmentally friendly products [32].  Companies must also ensure that in the implementation PSPs are implemented to increase clean production, which will have an impact on the quality of the environment, thus contributing to SM development. Further findings, the results of the study revealed that PPP has a significant effect on GPSI. The findings are in line with those made [33], and that adopting PPP for sustainability requires changing the design of the process and the products adopted, such as integrating green technologies into reality. They revealed that focusing solely on pollution prevention without treatment with the adoption of sustainable green technologies will be able to affect environmental performance. In addition, research conducted by [34] shows that in strategies to improve PPP performance, companies need to propose the concept of GPSI as an ability to present new perspectives on green innovation. There may be several causes; First, this research was conducted on manufacturing industries that have or are currently in green practices, and data collection from managers who are experts in tire manufacturing, most of them have partially utilised technology 4.0 and integrated the adoption of GPSI today, As a green manufacturing industry with the implementation of technology 4.0 in green practices, the strength of the relationship between GPSI and SPSSP will have a significant effect.  Study results [35] Adopting advanced technology helps achieve operational excellence with greater efficiency and productivity. Thus, GPSI as an alternative to SPSS, GPSI also received extreme attention from global academic experts and practitioners related to the issue of environmental care in green practices by carrying out green innovations in the manufacturing industry as a form of achieving sustainable development. The study finds that GPSI implementation significantly affects SPSSP. The results of this study Confirms that the successful implementation of GPSI contributes to increasing profits for the company, launching new environmentally friendly products, saving energy consumption costs, reducing material purchase costs, and improving the quality of products and services. The findings are in line with the study [36] GPSI’s green practices promote environmentally friendly product services that are beneficial to the environment and not harmful to the environment. GPSI’s green practice view is supported by [37], helping organisations achieve sustainability by improving the social welfare care for employees, employee safety, and health that affects TBLS. Continuing to the third research question, does GPSI mediate the relationship between PPP, PSP, TMC, and SPSSP green practices? The results of the study validate the mediating role of GPSI, which serves as the underlying mechanism for explaining the relationship between green practice capability and SPSSP. The findings reveal that GPSI implementing through PSP and PPP, and there needs to be a boost by management commitments. Several previous studies have addressed the effective implementation of green practices in the relationship between determinants of green manufacturing practice and SPSSP [38]. However, from a GPSI perspective, very few have investigated empirically how GPSI mediates the determinant relationship between SPSSP, and some researchers in developing countries have revealed that GPSI is new to the green practice. In this regard, this research empirically tests the relationship that GPSI as a mediation shows that the proper incorporation of mediators will help clarify the determining factors for achieving SM development.

5. CONCLUSIONS

In the face of highly competitive competition, the Company seeks to learn green practices to meet market demand. As green manufacturing practices continue to be explored for sustainable development goals, there is not enough research to study the key relationships between green practices and sustainable performance, especially in the context of developing and developed countries. Considering the research gap, this study contributes to green practices by exploring determinants such as TMC, PPP, and PSP, which facilitate GPSI with positive effects on SPSSP. To answer the first research question, this Study shows that TMC is very important in encouraging the implementation of GPSI green practices in the achievement of sustainable goals. In addition, PSP is a breakthrough in product recycling and the use of environmentally friendly energy that allows supporting GPSI and the ability to improve the formation of a circular economy. Continuing to the second question, GPSI can improve sustainable production process systems and conduct research and develop environment-based green innovations. The last question, the research findings show that the relationship between determinants and SPSSP can be mediated by GPSI, based on these findings, SPSSP is a model that can contribute to minimizing costs, reducing emissions and saving energy, improving environmentally friendly practices, and caring for public welfare and health. This study helps policymakers and practitioners with the implementation of GPSI, as it forms the latest innovative green practice efforts for sustainable development goals.

REFERENCES

1. Abebe (2022). Socio-economic characterization of community in watershed management in the southern Ethiopian. Dinkum Journal of Economics and Managerial Innovations, 1(01):40-46.
2. Al-Harath Abdulaziz Mohammed, Behram Harfi, & Li Chen, (2023). The role of leadership mindfulness on employee well-being through mediating role of ethical leadership. Dinkum Journal of Economics and Managerial Innovations, 2(02):71-81.
3. Asadul Jantan, Chong Kun, & Abdullah Al Mamun (2023). Impact of green recruitment on the organization sustainability: an empirical study of organizational performance. Dinkum Journal of Economics and Managerial Innovations, 2(02):120-133.
4. Athar Shahbaz Wani1 & Ingo Larch (2023). International trade settlement risks and preventive measures: a review of sustainable development of international trade. Dinkum Journal of Economics and Managerial Innovations, 2(01):13-18.
5. Attasuda & Thitima (2022). Impacts of economic conditions on mental health: a case study of Thailand. Dinkum Journal of Economics and Managerial Innovations, 1(01):30-39.
6. Avashana Yukongdi, Poudyal Vimolwan, and Raju Paul, (2023). Role of brand image and perceived value of customer on customer loyalty with the moderating role of service quality. Dinkum Journal of Economics and Managerial Innovations, 2(02):110-110.
7. Baah Lydia, Nyantakyi Tetteh, and Masud Kong, (2023). Consumers’ behavioral motives towards adoption of mobile commence in Ghana. Dinkum Journal of Economics and Managerial Innovations, 2(03):163-173.
8. Bilal Ahmad Sheikh, Ferooq Ahmad, & Amna Qureshi (2023). Net-value management of bank financial products: a review of management strategies. Dinkum Journal of Economics and Managerial Innovations, 2(02):93-99.
9. Bismark Abankwah, Amfo Vincent, & Mohammed Usamah, (2023). A review of construction economic cost management based on ghana market economy. Dinkum Journal of Economics and Managerial Innovations, 2(03):144-150.
10. Fatemah Qabir & Li Yu Kun, (2023). Relationship with workforce diversity and creative synergy on organizational performance. Dinkum Journal of Economics and Managerial Innovations, 2(02):82-92.
11. Hamza Ahamd (2023). Impact of employee training on job satisfaction through mediating role of employee commitment: An empirical study of Pakistan steel mills. Dinkum Journal of Economics and Managerial Innovations, 2(01):19-28.
12. Hamza Bhatti, Qasim Ayub, & Talha Yaqoob, (2023). The role of innovation strategies on the financial management of enterprises in the background of the economic crisis in Pakistan. Dinkum Journal of Economics and Managerial Innovations, 2(02):64-70.
13. Jabeen Iftekhar, Huma Noreen, & Shahab Khan (2023). Global competitiveness report on the impact of intellectual capital on economic growth. Dinkum Journal of Economics and Managerial Innovations, 2(01):40-49.
14. Jabeen, Li & Jian (2022). Management of green economic infrastructure and environmental sustainability and one belt and road initiative economies. Dinkum Journal of Economics and Managerial Innovations, 1(01):01-08.
15. Kevin Xiang, Hyunsu Agnihotri, and Ming Chen, (2023). Relationship between customer involvement and brand loyalty with moderating role of emotional attachment. Dinkum Journal of Economics and Managerial Innovations, 2(03):174-182.
16. Muhammad Shehzad Hanif, Fatima Batool, and Hifza Yaseen, (2023). Effectiveness of implementation of kaizen 5s and its impact on industry performance. Dinkum Journal of Economics and Managerial Innovations, 2(02):100-109.
17. Muizzuddin (2022). FDI and economic growth in Indonesia: A provincial and sectoral analysis. Dinkum Journal of Economics and Managerial Innovations, 1(01):19-29.
18. Oziengbe Scott, Hezekiah, Ogundipe , & Busola Folake (2023). The impact of paid promotions on customer satisfaction with the mediating role of co-creation of customer value and moderating role of customer loyalty. Dinkum Journal of Economics and Managerial Innovations, 2(03):132-143.
19. Prashant Aashish & Raman Kumar (2023). Factors influencing impulsive buying behaviors of Indian e-buyers on online shopping. Dinkum Journal of Economics and Managerial Innovations, 2(03):183-195.
20. Rashesh Paudel, Vaidya Devkota, & Niranjan Chen (2023). Impact of customer trust on brand satisfaction through expected benefits in the automobile sector of Nepal. Dinkum Journal of Economics and Managerial Innovations, 2(01):49-57.
21. Sana Arooj, Syed Hasan, & Hameed Ali Nisar (2023). Analysis of business management innovation of small and medium-sized enterprises of Pakistan under the new economic normal. Dinkum Journal of Economics and Managerial Innovations, 2(01):58-63.
22. Sana Ejaz, Naveed Akhter, & Amaima Yaseen (2023). Impact of professional development on career satisfaction, employee engagement as mediator in textile sector. Dinkum Journal of Economics and Managerial Innovations, 2(01):29-39.
23. Suriana Mohd, Hassan Saleh, & Md Ibrahim, (2023). Impact of knowledge management on organizational financial performance through mediating role of training & development programs. Dinkum Journal of Economics and Managerial Innovations, 2(03):196-208.
24. Vijay Pooniya*, Niraj Biswakarma, Dinesh Kumar, C.M. Parihar & Debasish Roy (2022). Management of green economic infrastructure and environmental sustainability and one belt and road initiative economies. Dinkum Journal of Economics and Managerial Innovations, 1(01):47-58.
25. Wan (2022). Evaluating different harvest intensities and carbon payment; economic benefits of forest management from pure forest into mixed forest. Dinkum Journal of Economics and Managerial Innovations, 1(01):59-68.
26. Wiranya Sutthikun & Sunil Gupta (2023). Lack of employee enthusiasm and its impact on organizational performance through the mediating effect of work-life balance. Dinkum Journal of Economics and Managerial Innovations, 2(01):01-12.
27. Xing (2022). Socio-Economic Inequalities in the Management of Chronic Diseases: A Cross-Sectional Study. Dinkum Journal of Economics and Managerial Innovations, 1(01):09-18.
28. Yuning Zhang, Wang Hexian, and Zhubai Li, (2023). Impact of economic factors on consumer perception: a partial least square approach on the consumer buying behaviors. Dinkum Journal of Economics and Managerial Innovations, 2(03): 151-162.
29. Jake A. De Castro and Everlyn M Laguador (2023). A short review on the financial management of Philippines organizations in the perspective of business innovation. Dinkum Journal of Economics and Managerial Innovations, 2(05):274-280.
31. Margam Faizul (2023). The impact of ethical leadership on employee well-being with moderating role of role of leadership mindfulness. Dinkum Journal of Economics and Managerial Innovations, 2(05):281-292.
32. Naushad Kumar and Nisha Gupta (2023). Impact of workplace diversity on organizational performance through the mediating role of creative synergy. Dinkum Journal of Economics and Managerial Innovations, 2(05):293-304.
33. Ferooq Ahmad (2023). A review on Equality Management of bank financial product. Dinkum Journal of Economics and Managerial Innovations, 2(05):305-310.
34. Ahmed A. Yahaya and Noraffandy Aldraiweesh (2023). A review about the effectiveness of kaizen 5s in performance evaluation. Dinkum Journal of Economics and Managerial Innovations, 2(05):311-316.
35. Poudyal Yukongdi and Avashana Vimolwan (2023). Impact of service quality on brand loyalty with moderating effect of brand identity. Dinkum Journal of Economics and Managerial Innovations, 2(05):317-326.
36. Md Abdullah Jantan and Abdullah Al Mamun (2023). Impact of green human resource management on the sustainable performance of the organization. Dinkum Journal of Economics and Managerial Innovations, 2(06):327-339.
37. Wiranya Gupta (2023). A study of employee performance with moderating role of support at home and support at work through the mediating role of work-life balance. Dinkum Journal of Economics and Managerial Innovations, 2(04):209-221.
38. Larch Anderson (2023). Role of risk management in the sustainable development of international trade. Dinkum Journal of Economics and Managerial Innovations, 2(04):222-227.
39. Dr. Hamza Sajid and Ahamd (2023). Relationship between employee’s satisfaction and employees technical training with the mediating role of employee commitment. Dinkum Journal of Economics and Managerial Innovations, 2(04):228-237.