Green work engagement and SMEs’ sustainable performance in Nigeria: The mediating role of green innovation

Authors

  • Yinka Calvin Ojeleye Department of Business Administration, Ahmadu Bello University, Kaduna State, Nigeria. https://orcid.org/0000-0003-1682-8542
  • Kareem Rafiu Falola Department of Accounting Education, Federal College of Education, Gusau, Zamfara State, Nigeria.
  • Salaudeen Jamiu Tunde Department of Accounting Education, Federal College of Education, Gusau, Zamfara State, Nigeria.

DOI:

https://doi.org/10.25299/ijbs.2026.25629

Keywords:

Green Innovation, Green Work Engagement, Sustainable Performance, Resource-Based View

Abstract

Purpose: This study examines the influence of green work engagement on the sustainable performance of small and medium-sized enterprises (SMEs) in Nigeria, with green innovation serving as a mediating variable. The study focused on SMEs in the agricultural sector across Kaduna, Kano, and Kebbi states.

Design/methodology/approach: A cross-sectional research design was employed, adopting a survey method to obtain relevant data from employees of 103 agricultural SMEs. Using a judgmental sampling technique, 300 copies of structured questionnaires were administered physically and complemented with online distribution via Google Forms. Of these, 201 usable responses were retrieved, forming the final dataset for analysis.

Findings: Green work engagement did not significantly impact SME sustainable performance, implying that employee engagement alone may not boost firm sustainability. In contrast, green innovation positively affected sustainability, showing that adopting eco-friendly practices helps achieve environmental, social, and economic goals. Green work engagement also significantly predicts green innovation, emphasizing the role of an environmentally friendly workplace in fostering creativity. Moreover, green innovation mediates the link between work engagement and sustainable performance, highlighting its key role in converting employee involvement into tangible sustainability outcomes.

Limitations and Research implications: The results' generalisability is limited by the use of judgemental sampling approach and single sector. Rather of using a scale designed for green work engagement, the research adapted the conventional work engagement scale, which would have limited measurement accuracy.

Practical Implications: The study highlights the need for SMEs, particularly within Nigeria's agricultural sector, to recognise that employee enthusiasm for environmentally friendly practices is essential, although insufficient for fostering sustainability independently.

Originality/value: The study contributes to sustainability literature by emphasizing the importance of green innovation in bridging the gap between green work engagement and organizational sustainability. It recommends that SME managers prioritize innovation-driven green practices to achieve long-term sustainable performance.

Downloads

Download data is not yet available.

References

Aboramadan, M. (2020). The effect of green HRM on employee green behaviours in higher education: the mediating mechanism of green work engagement. International Journal of Organizational Analysis, ahead-of-print (ahead-of-print). https://doi.org/10.1108/ijoa-05-2020-2190

Abouelenien, E. I. R., Abd-Elhady, H. M., Tahon, H. I. S., & Al Asrag, S. A. A. (2024). The relationship between green work engagement and green organisational citizenship behaviour in hotels and travel agencies: The moderating role of environmental organisational culture. Journal of the Faculty of Tourism and Hotels-University of Sadat City, 8(1), 21-40.

Alateeg, S. & Alhammad, A. (2024). The role of employee engagement towards innovative work behavior mediated by leadership in small businesses. International Journal of Advanced and Applied Sciences, 11(2), 145-156. https://doi.org/10.21833/ijaas.2024.02.016

Aligarh, F., Probohudono, A. N., Sudaryono, E. A., Widarjo, W., Arifin, M. R., Raharja, B. S., & Purwantini, A. H. (2025). Green innovation for sustainable performance: insights from the TOE framework. BIS Economics and Business, 2, V225010. https://doi.org/10.31603/biseb.226

Alshaabani, A., Naz, F., & Rudná, I. (2021). Impact of Green Human Resources Practices on Green Work Engagement in the Renewable Energy Departments. International Business Research, 14(6), 44–58. https://doi.org/10.5539/ibr.v14n6p44

Arshi, T. & Rao, V. (2019). Assessing impact of employee engagement on innovation and the mediating role of readiness for innovation. International Journal of Comparative Management, 2(2), 174-202. https://doi.org/10.1504/IJCM.2019.100857

Assensoh-Kodua, A. (2019). The resource-based view: A tool of key competency for competitive advantage. Problems and Perspectives in Management, 17(3), 143. https://www.researchgate.net/publication/335080997_The_resourcebased_view_a_toolof_key_competency_for_competitive_advantage

Barney, J., Wright, M., & Ketchen Jr, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625-641. https://doi.org/10.1177/014920630102700601

Barriga-Medina, H. R., Guevara, R., Campoverde, R. E., & Paredes-Aguirre, M. I. (2022). Eco-Innovation and Firm Performance: Evidence from South America. Sustainability (Switzerland), 14(15), 1–14. https://doi.org/10.3390/su14159579

Batool, F., & Mohsin, M. (2024). Impact Of Green Innovation on Business Sustainability Of Firms And The Mediating Role Of Green Intellectual Capital. Educational Administration Theory and Practice, 30(3), 636–645. https://doi.org/10.53555/kuey.v30i4.1528

Cisneros-Chavira, P., Shamsuzzoha, A., Kuusniemi, H., & Jovanovski, B. (2023). Defining green innovation, its impact, and cycle – A literature analysis. Cleaner Engineering and Technology, 17(July), 100693. https://doi.org/10.1016/j.clet.2023.100693

Demir, B., Akdemir, M. A., Kara, A. U., Sagbas, M., Sahin, Y., & Topcuoglu, E. (2025). The mediating role of green innovation and environmental performance in the effect of green transformational leadership on sustainable competitive advantage. Sustainability (Switzerland), 17(4), 1–22. https://doi.org/10.3390/su17041407

Dwiputri, R. M., Suyono, E., & Laksana, R. D. (2023). Intellectual capital, green innovation, and financial performance: The mediating role of sustainability. International Journal of Management and Sustainability, 12(3), 448–462. https://doi.org/10.18488/11.v12i3.3477

El-Kassar, A. N., & Singh, S. K. (2019). Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices. Technological Forecasting and Social Change, 144(11), 483–498. https://doi.org/10.1016/j.techfore.2017.12.016

Gede, D. U., & Huluka, A. T. (2024). Effects of employee engagement on organizational performance: case of public universities in Ethiopia. Future Business Journal, 10(1), 1–15. https://doi.org/10.1186/s43093-024-00315-7

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). Partial least squares structural equation modeling (PLS-SEM). In Sage Publisher. https://doi.org/10.1108/EBR-10-2013-0128

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Sage.

Haque, A., Islam, A., & Soh, S. (2024). Green HRM practices and green work engagement: The roles of green knowledge sharing and green group cohesion. Wiley, 16–31. https://doi.org/10.1002/joe.22266

Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 20, 195–204. https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195:AID-SMJ13>3.0.CO;2-7

Idrus, S. (2024). Green Work Engagement Can Moderate The Effect Of Green Human Resource Management Variables On Employee Performance. Jurnal Ilmiah Ekonomi Dan Bisnis, 12(3), 3083–3092. https://doi.org/https://doi.org/10.37676/ekombis.v12i3

Kanan, M., Taha, B., Saleh, Y., Alsayed, M., Assaf, R., Hassen, M. Ben, Alshaibani, E., Bakir, A., & Tunsi, W. (2023). Green Innovation as a Mediator between Green Human Resource Management Practices and Sustainable Performance in Palestinian Manufacturing Industries. Sustainability (Switzerland), 15(2), 1–27. https://doi.org/10.3390/su15021077

Kodden, B. (2020). The relationship between work engagement and sustainable performance. In The art of sustainable performance: A model for recruiting, selection, and professional development (pp. 39-45). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-030-46463-9_6

Lestari, S. H., & Anjaningrum, W. D. (2025). The effect of green work engagement, employee growth mindset, and employee's innovative work behaviour on innovative organizational culture. e-Jurnal Apresiasi Ekonomi, 13(11), 53-65. https://doi.org/10.31846/jae.v13i1.905

Li, S., Li, X., Zhao, Q., Zhang, J., & Xue, H. (2022). An Analysis of the Dimensional Constructs of Green Innovation in Manufacturing Enterprises: Scale Development and Empirical Testing. Sustainability 2022, 14, 16919. https://doi.org/10.3390/ su142416919

Lockett, A. (2005). Edith Penrose's legacy to the resource‐based view. Managerial and Decision Economics, 26(2), 83-98. https://doi.org/10.1002/mde.1214

Ludmilla, S. & Labeat, M. (2024). The impact of employee engagement and innovation performance on business success in manufacturing and service enterprises in Albania and Kosovo. Problems and Perspectives in Management, 22(1), 94-102. https://doi.org/10.21511/ppm.22(1).2024.09

Marini, M., Handoyo, S., & Sukadiono, S. (2023). Green work engagement: A literature review. Business, Management and Social Science, 3(3). https://doi.org/https://doi.org/10.31098/bmss.v3i3.662

Muafi. (2024). The Effect of Green Creativity and Green Innovation on Green Competitive Advantage and Performance of Sustainable SMEs: The Moderation Role of Digital Empowerment. Journal of System and Management Sciences, 14(4), 1–16. https://doi.org/10.33168/jsms.2024.0401

National Bureau of Statistics (2022). National Agricultural Sample Census 2022 https://microdata.nigerianstat.gov.ng/index.php/catalog/79/pdf-documentation

Nishat, S. S., & Haque, M. A. (2025). Effect of employee engagement on innovative work behavior in the ready‑made garment industry in Bangladesh: Mediating effect of knowledge sharing. Future Business Journal, 11(171), 1-12. https://doi.org/10.1186/s43093-025-00597-5

Ojeleye, Y. C., & Mustapha, H. A. (2024). Digital financial literacy and the performance of female entrepreneurs in Nigeria. Economics and Management, 21(1), 118–138. https://doi.org/10.37708/em.swu.v21i1.8

Ojeleye, Y. C., & Mustapha, H. A. (2025). Psychological capital and sustainable performance of smes in nigeria: Uncovering the mediating role of entrepreneurial competence. CBN Centre for Economics and Finance, University of Nigeria, Nsukka in Collaboration with the Consortium for Sustainable Development in Africa (CoSuDAf). Maiden Virtual International Conference, April. https://www.researchgate.net/publication/390200531

Ojeleye, Y. C., & Ojeleye, C. I. (2024). Workplace Civility, Workplace Harmony and Employee Engagement: Mediating Role of Employee Voice in Nigeria. 1st International Conference on Research and Innovation in Multidisciplinary Domains, 1–20. https://www.researchgate.net/publication/387477659_Workplace_Civility_Workplace_Harmony_and_Employee_Engagement_Mediating_Role_of_Employee_Voice_in_Nigeria

Rasheed, M. (2024). Engagement in Sustainability Green at Work: Fostering Employee Engagement in Sustainability. https://doi.org/10.4018/979-8-3693-6265-5.ch005

Sarstedt, M., Hair, J. F., HaJun-Hwa, C., Becker, J.-M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 1–15. https://doi.org/10.1016/j.ausmj.2019.05.003

Saudi, M. H. M., Sinaga, O., Gusni, & Zainudin, Z. (2019). The effect of green innovation in influencing sustainable performance: Moderating role of managerial environmental concern. International Journal of Supply Chain Management, 8(1), 303–310.

Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of short questionnaire with a cross-national study. Educational and Psychological Measurement, 66(4), 701–716. https://doi.org/10.1177/0013164405282471

Simiyu, A. K., Ndemo, E. B., Kinoti, M. W., & Wainaina, G. (2023). Enterprise sustainability performance measurement in Small and Medium Enterprises in Kenya: Construct validation using confirmatory factor analysis. International Journal of Economics, Business and Management Research, 7(02), 93–116. https://doi.org/10.51505/IJEBMR.2023.7208

Sun, W., Chen, K., & Mei, J. (2024). Integrating the resource-based view and dynamic capabilities: a comprehensive framework for sustaining competitive advantage in dynamic markets. EPRA International Journal of Economic and Business Review, 12(9), 1-8.

Yurdakul, M., & Kazan, H. (2020). Effects of eco-innovation on economic and environmental performance: Evidence from Turkey’s manufacturing companies. Sustainability (Switzerland), 12(8), 3167. https://doi.org/10.3390/SU12083167

Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207

Zhao, X., Lynch Jr, J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197-206. https://doi.org/10.1086/651257

Zvarimwa, C., & Zimuto, J. (2022). Valuable, rare, inimitable, non-substitutable and exploitable (VRINE) resources on competitive advantage. International Journal of Business & Management Sciences, 8(1), 9-22.

Downloads

Published

2026-07-31

Issue

Section

Articles