Green Technology, Green Products, Consumer Behavior and Firm Perfomance: A Micro Analysis

A large number of scholars explored this relationship but this area is still unexplored due to complexity and non-linearity between main theoretical streams and empirical findings, providing a research gap for further research. This study aims at investigating the influence of green technology, green products innovation, R&D expenditures and consumer behavior on firm performance, using primary data collected 425 employees of 10 selected textile firms located in Multan, Faisalabad, Karachi, and Lahore districts of Pakistan through questionnaire survey during October-December 2023. Using firm performance metrics, particularly annual profit as a proxy, the study employs Correlation matrix and ARDL approach to analyze the relationships between independent variables: green technology, green product innovation, research and development expenditures, consumer behavior, and dependent variable, firm performance. According to the findings, green technology, green product innovation, and customer preferences have positive and significant impact on firm performance, while the impact of R&D on firm performance was found insignificant.