The Impact of Global Supply Chain Integration and Environmental Management Practices on Sustainable Technological Innovation Performance in Finnish born Global Companies

Abstract

This study examined how environmental management practices (EMPs) and global supply chain integration (GSCI) influence sustainable technological innovation performance (STIP) in Finnish born global companies. This study focuses on how born global firms that rapidly internationalize can utilize EMP and GSCI to achieve STIP, helping them sustain themselves in a competitive global context by obtaining competitive advantage through environmental and operational strategies. The theoretical foundation of this study is grounded in the Resource-Based View (RBV) and its ecological extension, the Natural Resource-Based View (NRBV). These frameworks were applied to explain how EMPs and GSCI together enhance firms’ ability to innovate sustainably. Data were gathered using an online survey that was sent to Finnish-born global companies as part of a quantitative research approach. Responses from 100 companies were analysed using regression and mediation analysis in SPSS to test the developed hypotheses. To validate the results, the constructs of EMP, GSCI, and STIP were assessed using previously validated scales. The findings demonstrate that EMPs are positively associated with STIP, indicating that firms adopting proactive environmental strategies achieve superior innovation outcomes that are both environmentally and economically beneficial. GSCI also shows a significant positive relationship with STIP, underscoring the importance of collaboration, information sharing, and joint problem solving with global supply chain partners. Furthermore, GSCI mediates the relationship between EMPs and STIP, suggesting that supply chain integration amplifies the impact of internal environmental practices on sustainable innovation. This study contributes to the literature by providing empirical evidence that environmental management and global supply chain integration jointly strengthen sustainable innovation in Finnish-born global firms. It also offers managerial implications by emphasizing that developing internal environmental capabilities alongside collaborative global supply chain networks is critical for strengthening sustainable competitiveness. The results conclude that when proactive environmental strategies are supported by strong supply chain integration, sustainability can evolve from a compliance-focused activity into a strategic driver of innovation and long-term growth.