Author(s): Maher Mohammad Ahmad Alnaim, Farizah Sulong, Zalailah Salleh & Ghaith Abdulraheem Ali Alsheikh
Environmentally friendly firms opt for publishing their environmental and financial performance in their annual reports, illustrating the actual performance of the company. Such information is an important fodder for stakeholders. In relation to this, corporate boards and managers need to improve effective informative procedure to manage issues stemming from the management-shareholders connection. In this study, the relationships between innovation, corporate environmental performance, and corporate financial performance. Moreover, the study provided a description of the relationships among the mentioned factors, integrated under NRBV theory. The study also provided an extensive review of current literature, pertaining to the quantitative findings obtained from examining financial performance in the Jordanian Industrial Sector. Based on the findings, a positive relationship exists between innovation, and corporate financial performance, with corporate environmental performance as having a positive mediating role on the relationship between innovation, and corporate financial performance. In sum, innovation and corporate environmental performance are major factors to be considered by industrial sector desirous of maintaining their survival in the current competitive marketplace.