Unboxing Eco-Innovation and ESG for Circular Economy

This chapter provides empirical evidence on the association between eco-innovation and ESG in Malaysia. First, this study proposes an econometric model based on the emerging Malaysian economy with the resource-based view theory. It then develops a multiple regression for the panel data for 6 years from 2016 to 2021 to test the econometric model and proposed hypothesis. The analysis reveals a positive and significant relationship between eco-innovation and ESG. This finding indicates that eco-innovation enhances ESG practices in the firm and contributes to circular economy practices in the industrial sector.