<p>Environmental innovation (EI) and environmental partnerships (EP) are increasingly recognized as strategic mechanisms through which firms can enhance both sustainability and competitiveness. This study investigates how EI affects firm performance (FP) and whether EP amplifies that effect, with attention to firm-size differences. Using an unbalanced panel of 2025 firms across 17 European countries (2013–2022), we estimate panel regressions with firm and year fixed effects, clustered standard errors, and an interaction term (EI×EP) to test moderation. Performance is captured by return on assets, return on equity, and earnings per share. Results show EI is positively associated with all three proxies, and EP significantly strengthens the EI–FP link, indicating that collaboration with external stakeholders converts green innovation into superior outcomes. Size-split analyses suggest larger firms realize stronger gains, consistent with resource and network advantages. Theoretically, we extend the resource-based view by positioning EP as a complementary dynamic capability that enhances the productivity of EI. Practically, we outline implications for managers, investors, and policymakers seeking scalable pathways to align environmental and financial goals.</p>

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When collaboration pays: how environmental partnerships strengthen the innovation–performance link

  • Saleh F.A. Khatib,
  • Hamzeh Al Amosh

摘要

Environmental innovation (EI) and environmental partnerships (EP) are increasingly recognized as strategic mechanisms through which firms can enhance both sustainability and competitiveness. This study investigates how EI affects firm performance (FP) and whether EP amplifies that effect, with attention to firm-size differences. Using an unbalanced panel of 2025 firms across 17 European countries (2013–2022), we estimate panel regressions with firm and year fixed effects, clustered standard errors, and an interaction term (EI×EP) to test moderation. Performance is captured by return on assets, return on equity, and earnings per share. Results show EI is positively associated with all three proxies, and EP significantly strengthens the EI–FP link, indicating that collaboration with external stakeholders converts green innovation into superior outcomes. Size-split analyses suggest larger firms realize stronger gains, consistent with resource and network advantages. Theoretically, we extend the resource-based view by positioning EP as a complementary dynamic capability that enhances the productivity of EI. Practically, we outline implications for managers, investors, and policymakers seeking scalable pathways to align environmental and financial goals.