Modelling stakeholder theory through corporate green innovation, green innovation and responsibilities: a regulatory strategy for sustainable development

Corporate green innovation (CGI) and stakeholders’ responsibility are strategic means of addressing climate change (CC) towards attaining the sustainable (SD) policy in developing economies. For this reason, the study through stakeholder theory engages CGI through green innovation (GI) for climate change (CC) adaptation and mitigation. We explore the interplay between government regulatory reforms, CGI transformational effects to foster sustainable development. Using a structural equation modeling approach, this research recruited environmental service personnel in Pakistan, aiming at unearthing empirically and contextually causal relationships for the outcome. Findings indicate all associated causality was statistically significant except CC on SD; however, GI mediated a partial relationship on government regulations and sustainable development, while climate change moderation attenuates the impact of GI on sustainable development. The study contributes significantly to government regulatory strategies, suggesting that leveraging CGI and green innovation can significantly benefit the socio-economic and cultural dimensions of the enterprises on environmental sustainability. It underscores the collaborative effort required among organizations towards strategies combating climate change, aligning with Sustainable Development Goal (SDG) 13, through the application of green innovation.