Towards sustainable development in Indian small-scale industries: A green manufacturing initiative

Abstract

This study explores the impact of green manufacturing practices—specifically green activities, investments, and product types—on the economic performance of firms. Using survey data from Indian small- and medium-sized enterprises (SMEs), the research employs self-determination theory to analyze how the number of green activities, the extent of green investments, and the product type influence economic outcomes. The results reveal that a greater number of green activities enhances economic performance, while the relationship between green investments and economic performance follows an inverted U-shaped pattern. This dynamic is further strengthened when firms offer both green and non-green products. The study advances the understanding of green manufacturing's role in business performance and provides practical guidance for managers seeking to optimize the benefits of green initiatives.