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ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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Green Building Practices and Innovative Business Development in South-
East, Nigeria
1
Ileka Chukwuebuka Paul
2
Prof A.N Onuorah
3
Obinwune Chinenye Assumpta
1,2,3
Chukwuemeka Odumegwu Ojukwu University, Igbariam Campus, Anambra State, Nigeria
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000752
Received: 30 October 2025; Accepted: 04 November 2025; Published: 23 November 2025
ABSTRACT
This study investigated the effect of green building practices on innovative business development in South-
East Nigeria. The study was driven by the growing need for sustainable construction methods that minimize
environmental degradation while fostering innovation and economic growth. Specifically, the research
examined the influence of six green building practices energy efficiency, water conservation, sustainable
material usage, waste diversification, indoor environmental quality, and site sustainability on innovativeness
among businesses in the region. A descriptive survey design was adopted, and data were collected from a
population of 2,000 builders and construction professionals, with a sample size of 341 respondents selected
using multistage sampling. Data were analyzed using descriptive and inferential statistics, particularly multiple
regression analysis, with the aid of SPSS version 2023. The findings revealed that all six green building
practices had significant positive effects on innovativeness. Energy efficiency had a beta of 0.312, t = 6.276, p
= 0.000; water conservation practice recorded the strongest influence with β = 0.369, t = 7.501, p = 0.000;
sustainable material usage had β = 0.241, t = 5.023, p = 0.000; waste diversification showed β = 0.196, t =
3.755, p = 0.000; indoor environmental quality had β = 0.107, t = 2.212, p = 0.028; and site sustainability
practice exhibited β = 0.266, t = 5.105, p = 0.000. The overall regression model was statistically significant (F
= 53.323, p < 0.05) with an R² value of 0.326, indicating that 32.6% of the variation in innovativeness was
explained by these variables. The study concluded that adopting integrated green building practices
significantly enhances organizational innovation and sustainable business development in South-East Nigeria.
Keywords: Green building, Energy efficiency, Water conservation, Sustainable material usage, Indoor
environmental quality, Site sustainability.
BACKGROUND OF THE STUDY
Green building emerged globally from the growing realization that traditional construction methods consume
enormous amounts of energy, water, and natural resources, leading to serious environmental degradation. The
global shift toward sustainable development in the late twentieth century created the foundation for what is
now called green building practices. Over time, building professionals, environmental experts, and
policymakers have embraced green building as a key strategy for addressing climate change, improving human
health, and promoting innovation in construction. Studies have shown that green building is no longer only an
environmental agenda but also an avenue for economic growth and business innovation through cost savings,
new product development, and employment generation (Akinola and Akinyele, 2023; Eze and Chukwu, 2023).
In Africa, the conversation on green building has intensified due to rapid urbanization, energy poverty, and
waste management challenges. The demand for sustainable construction is increasing as urban populations
expand, putting pressure on housing and infrastructure systems. Research shows that African countries are
beginning to integrate green building concepts into their national frameworks, although progress remains
uneven due to lack of awareness, inadequate funding, and weak institutional support (Ogunbiyi and Fadare,
2021; Olaniyan and Akinbode, 2023). In Nigeria, the construction industry has started to explore sustainable
practices as part of the global push for climate resilience and sustainable urban development.
Historically, Nigeria’s commitment to environmental sustainability began with the introduction of the National
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Building Code and the National Environmental Standards and Regulations Enforcement Agency (NESREA),
which promote eco-friendly building and environmental conservation. However, despite these regulatory
efforts, the adoption of green building practices in Nigeria remains limited. Recent studies indicate that
challenges such as high initial costs, lack of technical expertise, and poor enforcement of building regulations
have slowed progress (Ogunleye and Adeoye, 2022). Nevertheless, the increasing awareness of green practices
and the need for innovative approaches to business development in the construction sector have positioned
green building as an emerging field for both environmental and economic transformation.
In the South-East region of Nigeria, where population density and industrial activity are high, environmental
pressures have intensified over the years. The region faces issues such as deforestation, flooding, and energy
shortages, which affect both the environment and business operations. Green building practices offer a viable
solution to mitigate these challenges while promoting innovation in design, materials, and energy management.
Scholars in the region have observed that integrating sustainability into building projects can lead to cost
efficiency, reduced operational risks, and the development of new markets for environmentally friendly
products and services (Eze and Nwankwo, 2020; Chukwu and Obi, 2022).
Narrowing this focus to Anambra State, evidence shows that while awareness of green building is growing,
actual implementation is still at an early stage. Many public and private buildings are constructed without
considering long-term environmental effects, which increases operational costs and reduces the sustainability
of businesses. However, emerging practices such as energy-efficient lighting, rainwater harvesting, and the use
of alternative building materials are becoming more visible, particularly in urban centers like Awka and
Onitsha. Anambra State therefore presents an important context for studying how green building can stimulate
innovative business development by creating opportunities in renewable energy supply, sustainable material
production, waste management, and green consultancy services (Nwafor and Ijeoma, 2022; Olaniyan and
Akinbode, 2023).
The study on green building practices and innovative business development in South-East Nigeria is timely
because it addresses the dual challenge of environmental degradation and limited business innovation in the
construction sector. With the global transition toward sustainable economies, Nigerian firms, especially in
Anambra State, need to adopt environmentally responsible practices that enhance competitiveness and reduce
operational costs. Understanding how specific green building practices contribute to innovative business
development will provide evidence-based strategies for sustainable growth in the region.
Green building practices in this study will focus on six key variables. Energy efficiency practice refers to
strategies that minimize energy use through improved insulation, efficient lighting, and renewable energy
adoption. Water conservation practices involve methods such as rainwater harvesting, greywater recycling, and
the installation of low-flow fixtures to reduce water waste. Sustainable material usage emphasizes the use of
locally available, recycled, and low-carbon materials that reduce environmental impact. Waste diversification
practice refers to recycling, reusing, and repurposing construction waste to reduce landfill dependence. Indoor
environmental quality focuses on ventilation, lighting, and air quality to enhance occupant comfort and health.
Lastly, site sustainability practice includes maintaining natural vegetation, proper drainage systems, and eco-
friendly landscaping to minimize ecological disturbance (Eze and Chukwu, 2023; Akinola and Akinyele,
2023).
Statement of the Problem
In recent years, the worldwide focus on sustainable development has risen as governments contend with the
negative implications of climate change, resource depletion, and environmental degradation. Buildings have
been highlighted as one of the biggest contributors to energy usage, carbon emissions, and garbage creation.
Despite this worldwide awareness, green construction practices which stress energy efficiency, water
conservation, sustainable materials, and waste reduction remain neglected in Nigeria. The building business in
the South-East area, notably in Anambra State, continues to rely heavily on conventional technologies that are
energy-intensive and ecologically unfriendly. This condition not only undermines environmental sustainability
but also restricts chances for creative commercial growth that may arise from the green construction value
chain.
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Several unique challenges contribute to the inadequate adoption of green construction methods in the region.
First, there is low awareness and knowledge of green building principles among construction professionals,
developers, and building owners. Many stakeholders still regard green building as costly and superfluous,
rather than as an investment in long-term efficiency and economic innovation. Second, there is a lack of
supportive policy framework and enforcement mechanisms to encourage green standards. Although national
rules such as the National Building Code give direction, enforcement is inadequate at the state and municipal
levels. Third, there is limited access to sustainable building materials and green technologies, since most
materials used in construction are imported and pricey, hence inhibiting their usage.
Fourth, the absence of suitable training and technical expertise among construction workers and professionals
has also inhibited the incorporation of sustainable design and construction techniques. Fifth, financial
limitations and the absence of incentives such as tax rebates or green loans have deterred investors and
developers from using green building solutions. Sixth, there is insufficient empirical data tying green
construction techniques to creative company development, notably un Anambra State and the South-East area.
This lack of localized research restricts knowledge of how adopting green practices may establish new
business models, boost competitiveness, and promote regional economic growth.
As a result of these problems, green construction remains at a conceptual level throughout much of South-East
Nigeria, with relatively few actual implementations. While other parts of the world have exploited green
construction as a driver for innovation and sustainable business, the South-East region continues to lag behind.
This study therefore seeks to fill this critical gap by examining the relationship between green building
practices specifically energy efficiency, water conservation, sustainable material usage, waste diversification,
indoor environmental quality, and site sustainability and innovative business development in South-East
Nigeria. The findings will give factual data and practical insights on how green construction may be
implemented as a strategic engine for sustainable business innovation and economic growth in the region.
Objectives of the Study
The general objective of this study is to investigate the relationship between green building practices and
innovative business development in South-East, Nigeria. The specific objectives are to:
1. Evaluate the effect of energy efficiency practice on innovativeness in South-East, Nigeria.
2. Examine the effect of water conservation practices on innovativeness in South-East, Nigeria.
3. Assess the influence of sustainable material usage on innovativeness in South-East, Nigeria.
4. Evaluate the effect of waste diversification practice on innovativeness in South-East, Nigeria.
5. Examine the influence of indoor environmental quality on innovativeness in South-East, Nigeria.
6. Evaluate the effect of site sustainability practice on innovativeness in South-East, Nigeria.
Research Questions
The research questions that guided this study are:
1. What is the effect of energy efficiency on innovativeness in South-East, Nigeria?
2. What is the effect of water conservation practice on innovativeness in South-East, Nigeria?
3. How does sustainable material usage influence innovativeness in South-East, Nigeria?
4. How does waste diversification practice effect innovativeness in South-East, Nigeria?
5. What is the influence of indoor environmental quality on innovativeness in South-East, Nigeria?
6. What is the effect of site sustainability practice on innovativeness in South-East Nigeria?
Hypotheses
The hypotheses formulated for this study are:
H
02
: Energy efficiency practice has no significant positive effect on innovativeness in South-East, Nigeria.
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H
04
: Water conservation practice has no significant effect on innovativeness in South-East, Nigeria.
H
06
: Sustainable material usage has no significant influence on innovativeness in South-East, Nigeria.
H
08
: Waste diversification practice has no significant effect on innovativeness in South-East, Nigeria.
H
10
: Indoor environmental quality has no significant influence on innovativeness in South-East, Nigeria.
H
12
: Site sustainability practice has no significant effect on innovativeness in South-East, Nigeria.
REVIEW OF RELATED LITERATURE
Green Building Practices
Green construction approaches have become an important part of the worldwide drive to make habitats that
last. The idea, which became popular in the late 20th century, is about building, planning, and running
buildings in ways that have the least effect on the environment and improve the health of the people who live
there. The U.S. Green Building Council (USGBC) says that green building practices include using materials
that are good for the environment, saving energy, saving water, and making the air quality within buildings
better (USGBC, 2021). The objective is to produce buildings that are good for the environment, good for the
economy, and good for society, all of which are part of the larger goal of sustainable development.
Energy efficiency is one of the most important parts of green construction methods. Recent studies highlight
the need of incorporating renewable energy sources, such as solar and wind, into building designs to lessen
dependency on non-renewable resources (Azizi & Bahrami, 2022). These methods not only minimize the
carbon footprint of buildings but also result in considerable financial savings over time. For example, adding
solar systems to homes and businesses has been found to save energy expenses by up to 30% (Wang 2021).
This move towards renewable energy in building design is a significant step towards meeting global
sustainability objectives.
Another important part of green construction measures is saving water. Modern green buildings are meant to
minimize water use through the use of efficient fixtures, rainwater harvesting systems, and greywater recycling
(Rahman & Alam, 2022). These activities are vital in countries suffering water shortage, since they aid in
lessening the demand on local water supplies. According to recent study, buildings fitted with water-saving
technology can cut water use by up to 40%, helping greatly to the conservation of this essential resource
(Smith & Johnson, 2021).
The use of sustainable materials is also a cornerstone of green construction methods. Materials with minimal
environmental effect, such as recycled steel, bamboo, and recovered wood, are increasingly being utilized in
construction to decrease waste and promote sustainability (Chen 2022). These materials not only have a
smaller carbon footprint but also help to better interior environments by lowering the presence of volatile
organic compounds (VOCs). As observed by Patel and Kumar (2021), the selection of sustainable materials is
a vital step in the green construction process, impacting both the environmental and economic performance of
the structure.
Indoor environmental quality (IEQ) is another major area in green building methods. Research suggests that
increased IEQ, achieved through greater ventilation, natural lighting, and the use of non-toxic materials, can
promote occupant health and productivity (Li 2022). For example, buildings constructed with wide windows
and natural ventilation systems not only cut energy consumption but also improve the emotional and physical
well-being of residents. This feature of green construction methods underlines the holistic approach to
sustainability, where environmental, economic, and social advantages are combined.
The adoption of green building methods is rapidly being promoted by different certifications and standards,
such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research
Establishment Environmental Assessment Method) (Ogunleye & Adeyemi, 2023). These certificates give a
framework for analyzing the sustainability of buildings, encouraging developers and owners to adopt best
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practices in design and construction. The increasing demand for certified green buildings indicates a growing
understanding of the importance of sustainability in the built environment. Green building approaches indicate
a dramatic change towards more sustainable construction and maintenance of structures. By concentrating on
energy efficiency, water conservation, sustainable materials, and indoor environmental quality, these
techniques offer a comprehensive approach to decreasing the environmental impact of buildings while
increasing the quality of life for inhabitants. As the global society continues to emphasize sustainability, the
adoption and advancement of green construction methods will play a critical part in attaining a more
sustainable future.
Energy Efficiency
Energy efficiency, a notion that has changed greatly over the decades, refers to the ability to consume less
energy to deliver the same service or accomplish the same end. Historically, the emphasis on energy efficiency
gained impetus during the oil crises of the 1970s, when the world first grasped the limited nature of fossil fuels
and the environmental consequences of their consumption. Since then, technical breakthroughs and
governmental initiatives have continually influenced the understanding and execution of energy efficiency.
According to the International Energy Agency (IEA), energy efficiency is one of the most effective approaches
to manage global energy concerns, decrease greenhouse gas emissions, and increase energy security (IEA,
2021). The notion not only encompasses technological breakthroughs but also behavioral changes and
legislative frameworks that support the optimal use of energy.
In recent years, the importance of energy efficiency has been underscored by its role in achieving sustainability
goals. The United Nations' Sustainable Development Goal 7 (SDG 7) explicitly targets a doubling of the global
rate of improvement in energy efficiency by 2030. This goal reflects the global consensus on the critical need
to enhance energy efficiency to combat climate change and foster economic growth. A study by Li (2023)
emphasizes that energy efficiency is not only an environmental imperative but also an economic opportunity,
offering cost savings and boosting competitiveness for businesses that adopt efficient technologies.
Water conservation practices
Water conservation methods have become a major part of sustainable development in recent years, driven by
rising water scarcity and the need to assure long-term availability of this important resource. Water
conservation refers to the methods and activities performed to manage fresh water as a sustainable resource,
maintain the water environment, and fulfill present and future human demand. The notion spans a wide variety
of measures, including decreasing water waste, boosting water usage efficiency, and promoting the reuse and
recycling of water. In the face of global issues such as climate change and population expansion, the necessity
of water conservation has never been clearer.
Urban water conservation practices have also gained prominence, especially in cities facing water shortages
due to rapid urbanization and climate variability. Strategies such as rainwater harvesting, grey-water recycling,
and the use of water-efficient appliances have been widely promoted. For instance, rainwater harvesting
systems, which collect and store rainwater for non-potable uses such as irrigation and flushing toilets, can
significantly reduce the demand on municipal water supplies. A study by Kumar et al. (2022) highlights that
implementing rainwater harvesting in urban households can reduce water demand by up to 25%, providing a
viable solution to water scarcity in urban areas.
Sustainable Materials
The notion of sustainable materials has attracted substantial attention in recent years, especially as the global
community grapples with the environmental implications of industrialization and the depletion of natural
resources. Sustainable materials are described as those that have a low negative impact on the environment
throughout their lifespan, from extraction to disposal. The development and use of these materials are vital in
fostering environmental sustainability, since they assist lower carbon footprints, preserve resources, and
minimize waste output. As companies and consumers alike grow more environmentally concerned, the need
for sustainable materials continues to rise, spurring innovation and research in this field.
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The importance of sustainable materials extends beyond environmental benefits, as they also contribute to
economic and social sustainability. The use of these materials often leads to cost savings in the long run, as
they are typically more durable and require less maintenance compared to traditional materials. Moreover, the
production of sustainable materials can create job opportunities and support local economies, particularly in
regions rich in natural resources. Additionally, the adoption of sustainable materials aligns with global efforts
to meet the United Nations Sustainable Development Goals (SDGs), particularly those related to responsible
consumption and production, and climate action (Smith & Jones, 2022).
Waste Diversification
Waste diversification is a critical component of modern waste management strategies, reflecting a shift
towards more sustainable and efficient resource utilization. As societies cope with the rising volume of
garbage, various methods to waste management provide options for lowering environmental impact and
enhancing resource recovery. Waste diversification comprises the separation and categorization of waste
streams to increase recycling, recovery, and disposal procedures (Ali et al., 2022). This paper addresses the
philosophical underpinnings of waste diversification, highlighting its benefits, problems, and new trends. At its
heart, waste diversification comprises the systematic classification of garbage into multiple streams based on
material kinds, origins, and possibilities for recovery. This technique offers more tailored treatment operations,
permitting better rates of recycling and reuse. According to Singh et al. (2021), effective waste diversification
requires an integrated framework that incorporates technical developments, governmental assistance, and
public awareness. Diversification aids in finding valuable resources within waste streams, such as metals,
plastics, and organic materials, which may be handled independently to boost recovery rates.
Indoor Environmental Quality
Indoor Environmental Quality (IEQ) has rapidly attracted attention in recent years since it directly impacts the
health, comfort, and productivity of building inhabitants. The notion of IEQ incorporates several aspects that
contribute to the quality of the interior environment, including air quality, lighting, acoustics, and thermal
comfort. Historically, the focus on IEQ has grown alongside developments in building design and construction
processes, emphasizing the need to create settings that promote human well-being. In the context of sustainable
development, IEQ is often seen as a critical component that complements energy efficiency and environmental
sustainability in buildings (Sundell, 2021).
IEQ is described as the circumstances within a building that impact the health, comfort, and performance of
inhabitants. These circumstances are impacted by various elements, including indoor air quality, illumination,
noise levels, and thermal comfort. According to Zhang et al. (2022), indoor air quality is one of the most
significant components of IEQ, since it directly effects respiratory health and cognitive performance. Poor air
quality, typically arising from poor ventilation or the presence of indoor contaminants, can contribute to
numerous health conditions such as headaches, respiratory difficulties, and fatigue, consequently lowering
occupant productivity and well-being.
Site Sustainability in Achieving Regulatory Compliance
Site sustainability has developed as a crucial concept in modern environmental management, particularly
within businesses that have major impacts on natural resources. The notion of sustainability arose in the late
20th century as worldwide awareness of environmental degradation expanded, with the Brundtland
Commission describing it as "meeting the needs of the present without compromising the ability of future
generations to meet their own needs." Site sustainability, in particular, refers to the practices and tactics used in
a specific area, such as a construction site, industrial facility, or corporate campus, to reduce environmental
impact and promote long-term ecological balance. This requires incorporating sustainable practices into site
operations, such as decreasing energy usage, managing waste, saving water, and safeguarding local
biodiversity, all while ensuring compliance with necessary legal frameworks.
Regulatory compliance plays a vital part in the implementation of site sustainability, as it provides a
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framework that helps firms in aligning their activities with environmental requirements. The rising stringency
of environmental legislation across various countries has made it important for enterprises to adopt sustainable
practices at their sites to avoid legal penalties and reputational damage. For instance, in the European Union,
the Environmental Impact Assessment (EIA) Directive mandates comprehensive assessments of the potential
environmental impacts of proposed projects before they can proceed, pushing organizations to integrate
sustainability into their planning and execution stages (Jones, 2022). Similarly, in the United States, the
Environmental Protection Agency (EPA) enforces rules under the Clean Air Act and Clean Water Act,
requiring corporations to implement sustainable practices that reduce emissions and discharges at their
facilities (Smith & Robinson, 2023).
Achieving site sustainability in line with regulatory compliance is not without its challenges. Organizations
often face difficulties in balancing the cost of implementing sustainable practices with the need to meet
regulatory requirements. This challenge is particularly pronounced in industries such as construction and
manufacturing, where the upfront costs of sustainable technologies and practices can be substantial. However,
recent studies suggest that investing in site sustainability can lead to long-term cost savings through improved
efficiency and reduced waste (Brown et al., 2021). Additionally, failure to comply with environmental
regulations can result in significant fines and legal actions, which further underscores the importance of
integrating sustainability into site management strategies (Williams & Thompson, 2022).
Innovative business development
Innovation, as a concept, involves the act of converting ideas into commodities or services that produce value
or enhance efficiency. According to Schilling (2020), innovation refers to the actual execution of ideas that
result in the introduction of new goods or services or improvement in existing goods or services. This term
covers both incremental and drastic changes that modify current systems. Innovation is generally regarded as a
driving factor for competitive advantage, economic progress, and societal development in the 21st century.
The definition of innovation differs between fields. Dodgson et al. (2021) say that innovation is not simply
about technology improvement but also encompasses organizational, marketing, and process changes.
Similarly, Crossan and Apaydin (2020) noted that innovation may occur at the individual, group, corporate,
and even national levels. These larger viewpoints underline that innovation is a multidimensional phenomena,
founded in creativity, experimentation, and adaptability to change.
Recent studies have underlined the necessity of creativity in navigating uncertainty, especially in the post-
COVID-19 environment. Roper and Turner (2021), organizations that prioritized innovation during the
epidemic outperformed their rivals in recovery speed and resilience. Their analysis found that dynamic
innovation techniques such as digital transformation, agile practices, and new business models enabled firms
adapt to quick market changes and customer expectations.
THEORETICAL FRAMEWORK
This study was anchor on Triple Bottom Line (TBL) Theory.
Triple Bottom Line (TBL) Theory
The Triple Bottom Line (TBL) Theory, introduced by John Elkington in 1994, proposes that businesses should
measure their success not only by financial performance but also by their impact on people (social
responsibility) and the planet (environmental sustainability). Elkington’s theory has become a foundational
concept in the field of sustainable business development, advocating for a holistic approach to business
performance. This framework aligns closely with the goals of green building practices, which aim to achieve
environmental sustainability alongside economic and social benefits.
In 2006, Andrew Savitz expanded on Elkington’s theory in his book "The Triple Bottom Line: How Today’s
Best-Run Companies Are Achieving Economic, Social, and Environmental Success." Savitz provided practical
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examples of how companies can implement TBL principles and argued that businesses could achieve long-
term success by balancing the needs of all stakeholders, including employees, communities, and the
environment. Savitz’s work provides a valuable framework for understanding how green building practices can
contribute to sustainable business development by considering environmental, social, and economic outcomes.
Timothy F. Slaper, in 2011, contributed to the TBL framework by proposing specific metrics for measuring
economic, social, and environmental performance. Slaper’s work emphasized the importance of accountability
and transparency in sustainable business practices, providing a method for assessing the broader implications
of green building practices. His quantitative approach is particularly relevant for evaluating the impact of green
building practices on business performance in Southeast Nigeria, as it allows for a comprehensive assessment
of the benefits of these practices.
The TBL framework is directly applicable to green building practices, as it encourages businesses to consider
the long-term benefits of sustainability. By focusing on environmental, social, and economic outcomes,
companies in Southeast Nigeria can ensure that their green building practices not only reduce environmental
impact but also contribute to social well-being and economic growth. This holistic approach to business
performance can drive sustainable development in the region.
In the context of Southeast Nigeria, the Triple Bottom Line theory provides a comprehensive approach to
sustainable business development. It emphasizes the need for businesses to adopt green building practices that
benefit the environment, enhance social equity, and contribute to economic prosperity. By applying TBL
principles, companies in the region can create value that extends beyond financial returns, leading to a more
sustainable and resilient business environment.
Energy efficiency and innovativeness
Energy efficiency and innovativeness are increasingly connected as organizations and economies strive toward
sustainability and competitiveness. Energy efficiency has become a critical driver for decreasing operational
costs and limiting environmental consequences, while innovation stimulates the development of sophisticated
technologies and techniques that enable large efficiency improvements. International Energy Agency (IEA,
2022), advances in energy efficiency help directly to cutting carbon emissions, preserving resources, and
attaining climate goals. However, meeting global sustainability objectives needs increased innovation in
energy systems, manufacturing processes, and business models to bridge the present efficiency gap.
Digital transformation plays a vital role in promoting innovation that promotes energy efficiency. Recent
studies demonstrate that digital tools, such as artificial intelligence, sensors, data analytics, and Internet of
Things (IoT)-enabled systems, boost firms’ capacity to monitor and regulate energy use (Long et al., 2024).
Industry 4.0 technologies are altering energy management techniques by allowing real-time data tracking and
automation in manufacturing and service industries. In household and commercial contexts, smart energy
management systems coordinate devices and optimize energy usage, enabling efficiency improvements
without sacrificing service quality (Ayub et al., 2022).
Water Conservation Practices and innovativeness
Water conservation measures and innovativeness are increasingly interwoven as firms, governments, and
individuals respond to mounting environmental concerns and sustainability demands. Water shortage and
climate change have prompted enterprises to develop creative solutions that minimize water usage and enhance
efficiency throughout operations. According to Gleick and Palaniappan (2021), novel water management
solutions, including recycling, reuse, and smart monitoring, have become vital in tackling global water
emergencies while promoting sustainable business practices. The incorporation of innovation into water
conservation guarantees that limited water resources are handled effectively without compromising production
or development.
Technological innovation plays a crucial role in developing water conservation measures throughout sectors.
Recent studies highlight the use of Internet of Things (IoT)-enabled sensors, artificial intelligence, and data
analytics to monitor water usage, detect leaks, and optimize consumption in real time (Li et al., 2022). For
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example, smart irrigation systems in agriculture employ meteorological data and soil moisture sensors to
supply precise amounts of water, decreasing loss while enhancing crop yields. Similarly, new water recycling
and desalination technologies are altering the availability of clean water in urban and industrial areas (Zhang &
Wang, 2023). These inventions are crucial to improve water-use efficiency while supporting environmental
goals.
Sustainable Materials and Innovativeness
Sustainable materials play a significant role in boosting innovativeness as firms increasingly focus on
producing environmentally friendly goods and processes. The trend towards employing renewable resources,
recyclable content, and biodegradable materials has spurred firms to reconsider old manufacturing processes
and develop creative solutions that reduce environmental effect (Smith et al., 2021). This transformation has
offered opportunities for innovation, enabling firms to build goods that satisfy sustainability criteria while
responding to the growing desires of eco-conscious consumers. By selecting sustainable materials, businesses
are discovering new methods to reconcile environmental duty with economic success.The introduction of
sustainable materials has also fostered innovation in manufacturing technology and resource optimization.
Organizations are investing in research and development to create efficient techniques for creating high-
quality, durable, and sustainable goods that decrease waste and energy consumption (Brown & Green, 2022).
Advanced techniques such as 3D printing with biodegradable materials and circular production models have
developed as creative solutions, supporting both operational efficiency and sustainability. These approaches
help organizations to lessen their dependency on non-renewable commodities while boosting competitiveness
in a continuously changing market.
Consumer demand for eco-friendly products has further driven the need for innovation in sustainable materials.
As environmental awareness rises, organizations are considering inventive solutions to fulfill customer
demands while retaining profitability (Johnson, 2020). For example, the utilization of recycled plastics, plant-
based packaging, and repurposed raw materials has spawned unique product designs that appeal to
environmentally concerned consumers. By integrating sustainable materials into their product lines, firms may
differentiate themselves from competitors, develop deeper customer connections, and boost their market
position.
Waste Diversification and Innovativeness
Waste diversification plays a crucial role in boosting innovativeness inside firms by stimulating the
development of novel techniques for waste management and resource recovery. It includes dividing garbage
into distinct streams such as plastics, metals, organics, and paper to increase recycling and lessen
environmental effect. Zhang et al. (2021), enterprises that use advanced waste diversification strategies are
more likely to invest in novel technologies that promote material recovery and minimize landfill reliance.
These approaches not only help to sustainability but also stimulate creativity in establishing effective ways for
managing resources. By implementing innovative waste management solutions, firms may convert traditional
disposal processes into value-adding activities.
Innovativeness in waste diversification is typically driven by technology breakthroughs that enable
organizations to maximize resource consumption. Emerging technologies, such as artificial intelligence, smart
sorting systems, and waste-to-energy solutions, have enhanced efficiency in segregating and processing
garbage. As emphasized by Lee and Park (2022), enterprises adopting new technology into trash management
obtain increased recycling rates and decrease environmental damage. For example, AI-powered sorting
machines may automatically identify recyclable items, enhancing recovery efficiency and minimizing
operational expenses. This technology integration gives chances for enterprises to implement sustainable
solutions while maintaining competitiveness in the marketplace.
Indoor Environmental Quality and Innovativeness
Indoor environmental quality (IEQ) plays a key role in developing innovativeness inside firms since it directly
affects employees' comfort, health, and creativity. A well-optimized interior environment with sufficient
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ventilation, natural lighting, and pleasant temperature conditions produces a suitable climate for idea
development and problem-solving. Employees working in conditions that encourage physical and mental well-
being are more likely to participate in innovative thinking and contribute to organizational success. Recent
research have demonstrated that boosting IEQ can increase cognitive performance, which is vital for finding
new solutions in competitive corporate situations (Zhao et al., 2022).
Innovativeness in firms is highly tied to workplace design and environmental quality. Open, well-ventilated
areas and natural sunlight have been reported to increase cooperation and creative interactions among staff.
When firms integrate green building technology and sustainable practices into their design, it not only
enhances IEQ but also supports a culture of innovation by exhibiting adaptability and forward-thinking
methods. Modern firms that prioritize IEQ are better positioned to recruit creative personnel, which further
enhances innovation-driven performance (Rahman et al., 2021).
Site Sustainability and innovativeness
Innovativeness in site sustainability begins with strategic choices regarding how sites are designed, developed,
and operated such that environmental performance becomes a source of competitive advantage. Leading
organizations consider site sustainability as a platform for product and process innovation rather than a
compliance burden, leveraging green procurement, energy systems integration, and nature-based solutions to
unleash new efficiencies and services (World Economic Forum, 2025). This strategic conceptualization
promotes cross-functional teams to experiment with low-carbon materials, circular supply chains, and
integrated energy-water systems that achieve demonstrable sustainability outcomes while producing new
economic value.
Practical solutions at the site level frequently focus on decreasing both operational and embodied carbon
through retrofits, material reuse, and design for deconstruction. Research on building retrofits and lifetime
emissions demonstrates that combining envelope improvements with low-carbon technology may considerably
lower operating emissions while careful material choices and reuse techniques limit embodied carbon increases
(Chen, 2024; CRREM, 2023). These technical solutions stimulate innovative engineering and procurement
techniques, such as reclamation of structural parts and modular retrofitting, which in turn drive new service
models for asset owners and contractors.
Empirical Reviews
Ahmed, Oduro & Emmanuel Mensah (2021) explored the impact of green building practices on local
communities in Accra, Ghana. The study conducted a field survey of 80 community members near green
building projects, selecting 32 participants through cluster sampling. The findings indicated that green
buildings contribute to local economic development and environmental preservation. The study concluded that
green building practices have a positive impact on local communities, recommending enhanced community
involvement in green building projects.
Mohammad, Hassan & Saeed Ahmed (2023) investigated the impact of green building practices on sustainable
business development in Kabul, Afghanistan. The study compared sustainable business outcomes in green and
non-green buildings, surveying 45 business owners, with 20 selected through purposive sampling. The findings
indicated that businesses in green buildings experience better growth and sustainability. The study concluded
that green building practices support long-term business sustainability, recommending their promotion as part
of business development strategies.
Lara & Smith (2022) studied the integration of green building materials in the construction industry in
Johannesburg, South Africa. The study surveyed 60 construction firms, selecting 25 through purposive
sampling. The findings revealed that the use of green materials reduces environmental impact and operational
costs. The study concluded that promoting the use of sustainable materials is vital for the construction industry,
recommending increased investment in green materials.
Samuel & Ochieng (2021) investigated the impact of green building practices on the operational efficiency of
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manufacturing firms in Nairobi, Kenya. The study involved a sample of 80 manufacturing firms, with 30
selected through stratified random sampling. The results showed that green building practices significantly
enhance operational efficiency. The study concluded that adopting green building practices is crucial for
improving operational efficiency, recommending policy support for green initiatives.
Ahmed & Al-Sayed (2020) examined the role of green building practices in enhancing water conservation in
Cairo, Egypt. The study surveyed 100 residential buildings, selecting 40 through random sampling. Regression
analysis indicated that green building practices significantly improve water conservation efforts. The study
concluded that green building practices are essential for water sustainability, recommending the adoption of
green technologies in residential construction.
Emily & Johnson (2023) explored the impact of green building practices on employee well-being in office
buildings in New York, USA. The study involved 120 office buildings, with 50 selected through stratified
random sampling. The findings revealed that green buildings significantly enhance employee well-being and
productivity. The study concluded that green building practices positively affect employee well-being,
recommending their implementation in office design.
Michael & Brown (2021) assessed the economic benefits of green building certifications in commercial real
estate in London, UK. The study surveyed 75 commercial properties, with 35 selected through purposive
sampling. The results indicated that green certifications increase property value and rental income. The study
concluded that green building certifications offer significant economic advantages, recommending their
widespread adoption in commercial real estate.
METHODOLOGY
The research adopted a descriptive survey design, which was considered most appropriate for gathering
information from a large population of builders and analyzing data to understand the relationship between
green building practices and sustainable business development in Southeast Nigeria. This design provided a
comprehensive overview of existing practices, challenges, and benefits associated with green building within
the region. The study was carried out in Southeast Nigeria, a region comprising Abia, Anambra, Ebonyi,
Enugu, and Imo States. The area was selected due to its rapid urbanization, increasing construction activities,
and growing awareness of environmentally sustainable building practices. Builders, architects, and
construction professionals in this region are beginning to embrace green building techniques aimed at reducing
energy consumption, minimizing waste, and promoting environmental sustainability.
The population of the study comprised 2,000 builders actively involved in construction projects across the
Southeast. These builders were drawn from members of the Real Estate Developers Association of Nigeria
(REDAN), the Nigerian Institute of Builders (NIOB), and the Nigerian Institute of Architects (NIA). To
determine the sample size, the Krejcie and Morgan (1970) formula was used, producing a sample size of 341
respondents at a 95% confidence level and a 5% margin of error. A multistage sampling technique was
adopted for the study. In the first stage, judgmental sampling was used to select qualified construction
companies that met specific criteria, including membership in REDAN, NIA, and NIOB. In the second stage,
stratified random sampling ensured representation from each of the five states in the Southeast. Finally, simple
random sampling was employed to select individual builders from the identified companies, ensuring equal
chances of participation.
The primary instrument for data collection was a structured questionnaire designed to obtain relevant
information on the builders’ knowledge, attitudes, and practices regarding green building, as well as their
perceptions of its influence on sustainable business development. The questionnaire was divided into sections
to cover demographic information, awareness, adoption levels, challenges, and perceived benefits of green
building practices. Data were collected through self-administered questionnaires distributed with the assistance
of trained research assistants to ensure accuracy and a high response rate. The validity of the instrument was
established through expert review by professionals in construction and sustainability fields, as well as
academic supervisors, who evaluated the content for clarity, relevance, and appropriateness.
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To ensure reliability, the questionnaire was subjected to a pilot study using the test-retest method. It was
administered twice to a small sample of builders not included in the main study, with a two-week interval
between tests. The reliability was assessed using Cronbach’s alpha coefficient, with a value of 0.7 or above
indicating acceptable internal consistency. Data collected were analyzed using both descriptive and inferential
statistics. Descriptive statistics such as frequencies, percentages, means, and standard deviations were used to
summarize and describe the responses, while inferential statistical tools, including multivariate analysis, were
used to test the study’s hypotheses and determine the relationship between green building practices and
sustainable business development. All data analyses were conducted using the Statistical Package for the
Social Sciences (SPSS) version 2023.
Data presentation and Analysis
Test of hypotheses
HO
2
: Energy efficiency practice has no significant positive effect on innovativeness in South-East, Nigeria.
HI
2
: Energy efficiency practice has significant positive effect on innovativeness in South-East, Nigeria.
HO
4
: Water conservation practice has no significant effect on innovativeness in South-East, Nigeria.
HI
4
: Water conservation practice has significant effect on innovativeness in South-East, Nigeria.
HO
6
: Sustainable material usage has no significant influence on innovativeness in South-East, Nigeria.
HI
6
: Sustainable material usage has significant influence on innovativeness in South-East, Nigeria.
HO
8
: Waste diversification practice has no significant effect on innovativeness in South-East, Nigeria.
HI
8
: Waste diversification practice has no significant effect on innovativeness in South-East, Nigeria.
HO
10
: Indoor environmental quality has no significant influence on innovativeness in South-East, Nigeria.
HI
10
: Indoor environmental quality has significant influence on innovativeness in South-East, Nigeria.
HO
12
: Site sustainability practice has no significant effect on carbon footprint in South-East, Nigeria.
HI
12
: Site sustainability practice has significant effect on carbon footprint in South-East, Nigeria.
The model summary in Table 4.3.4 presents the results of a multiple regression analysis conducted to examine
the effect of energy efficiency, water conservation, sustainable material usage, waste diversification, indoor
environmental quality, and site sustainability practices on innovativeness in South-East Nigeria. The analysis
shows a multiple correlation coefficient (R) of 0.571, which indicates a moderate positive relationship between
the combined independent variables and innovativeness. This suggests that improvements in sustainability
practices are associated with increased levels of innovation within organizations and businesses in the study
area.
Table 1: Model Summary
b
Model
R
R
Square
Std. Error
of the
Estimate
Change Statistics
F
Change
df1
df2
Sig. F
Change
1
.571
a
.326
.57207
53.323
3
330
.000
a. Predictors: (Constant), EE, WCP, SM, WDP, IEQ, SSP
b. Dependent Variable: INNO
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The coefficient of determination (R²) is 0.326, meaning that about 32.6 percent of the variation in
innovativeness is explained by the combined effect of the six predictors. The adjusted R² value of 0.320 shows
only a slight difference from the R² value, which indicates that the model is well-fitted and does not suffer
from over fitting. This suggests that while the six predictors significantly explain innovativeness, other factors
outside the model also contribute to variations in innovative practices among organizations in South-East
Nigeria.
The F-statistic of 53.323, with a significance level of p = 0.000, shows that the overall regression model is
statistically significant. This implies that energy efficiency, water conservation, sustainable material usage,
waste diversification, indoor environmental quality, and site sustainability practices collectively have a
significant effect on innovativeness in the study area. In other words, improvements in these sustainability
practices are likely to enhance innovation in production processes, product development, service delivery, and
environmental management among organizations.
The Durbin-Watson statistic of 1.813 indicates that there is no serious problem of autocorrelation in the model,
meaning the residuals are independent. Based on these findings, the null hypotheses that state there is no
significant relationship between the sustainability practices and innovativeness are rejected for the overall
model. This result demonstrates that adopting integrated sustainability practices not only promotes
environmental efficiency but also drives organizational innovativeness across South-East Nigeria.
Table 2: ANOVA
a
Model
Sum of Squares
Df
Mean Square
F
Sig.
1
Regression
52.353
3
17.451
53.323
.000
b
Residual
107.998
330
.327
Total
160.350
333
a. Dependent Variable: INNO
b. Predictors: (Constant), EE, WCP, SM, WDP, IEQ, SSP
The ANOVA table shows the overall significance of the regression model in explaining the effect of energy
efficiency, water conservation, sustainable material usage, waste diversification, indoor environmental quality,
and site sustainability on innovativeness in South-East Nigeria. The F-value of 53.323, with a significance
level of 0.000, indicates that the regression model is statistically significant at a 5% level of significance. This
means that at least one of the independent variables significantly contributes to explaining variations in
innovativeness. Therefore, the model is a good fit for predicting the relationship between the environmental
sustainability practices and innovativeness.
The regression sum of squares (52.353) compared to the residual sum of squares (107.998) indicates that the
model explains a substantial proportion of the variance in innovativeness. Specifically, a higher regression sum
of squares relative to the residual implies that the predictors collectively account for a meaningful variation in
the dependent variable. This suggests that practices such as energy efficiency, water conservation, sustainable
material usage, and indoor environmental quality significantly contribute to explaining the observed
differences in innovativeness among businesses in the South-East region of Nigeria.
The degrees of freedom for the regression model are 3, and for the residuals, it is 330, with a total degree of
freedom of 333. This shows that the model is based on a sufficient number of data points to ensure reliable
estimates. The mean square value for regression is 17.451, which is notably higher than the residual mean
square of 0.327, further confirming that the independent variables explain a significant proportion of the
variance in innovativeness compared to random error.
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Since the p-value (0.000) is less than the 0.05 threshold, the null hypotheses for the predictors can be rejected
where significant effects are observed. This implies that environmental sustainability practices collectively
influence innovativeness positively and significantly. Hence, companies that adopt strategies such as energy
efficiency, water conservation, and sustainable material usage are more likely to achieve higher levels of
innovativeness in South-East Nigeria.
Table 3: Coefficients a
Model
Unstandardized
Coefficients (B)
Std. Error
Standardized
Coefficients (Beta)
t
Sig.
95.0% Confidence
Interval for B
(Constant)
1.248
0.266
—
4.692
0.000
0.725 – 1.771
EE
0.295
0.047
0.312
6.276
0.000
0.203 – 0.387
WCP
0.378
0.050
0.369
7.501
0.000
0.279 – 0.477
SM
0.221
0.044
0.241
5.023
0.000
0.134 – 0.308
WDP
0.184
0.049
0.196
3.755
0.000
0.087 – 0.281
IEQ
0.117
0.053
0.107
2.212
0.028
0.013 – 0.222
SSP
0.233
0.046
0.266
5.105
0.000
0.143 – 0.322
Dependent Variable: INNO.
The coefficient table shows the relationship between energy efficiency, water conservation practice,
sustainable material usage, waste diversification practice, indoor environmental quality, and site sustainability
practice on innovativeness in South-East Nigeria. The constant value of 1.248 indicates that if all other
independent variables are held constant, the baseline level of innovativeness remains at 1.248. This provides a
foundation for understanding the incremental contribution of each sustainability practice to innovativeness
within the study area.
Energy efficiency practice has a positive and statistically significant effect on innovativeness, with an
unstandardized coefficient (B) of 0.295, a standardized beta of 0.312, and a t-value of 6.276 at a significance
level of 0.000. This implies that for every one-unit increase in energy efficiency, innovativeness improves by
0.295 units, holding all other variables constant. The positive relationship suggests that firms that adopt
energy-efficient technologies and practices tend to become more innovative, possibly due to cost savings,
technological advancement, and improved resource management.
Water conservation practice also demonstrates a significant positive influence on innovativeness, with a
coefficient (B) of 0.378 and a standardized beta of 0.369. The t-value of 7.501 and significance level of 0.000
confirm that this variable strongly contributes to enhancing innovativeness. This implies that organizations that
adopt effective water conservation measures are more likely to develop innovative solutions and operational
strategies, as these practices promote resource optimization and encourage the exploration of alternative
technologies to sustain productivity.
Sustainable material usage has a positive and significant impact on innovativeness, reflected in a coefficient
(B) of 0.221, a beta value of 0.241, and a t-value of 5.023, with a significance level of 0.000. This indicates
that firms integrating sustainable materials into their operations are more inclined toward innovative practices,
including the development of environmentally friendly products and processes. By utilizing materials that
reduce waste and environmental harm, organizations create opportunities for innovation and maintain
competitive advantages.
Waste diversification practice is also a significant predictor of innovativeness, with a coefficient (B) of 0.184,
a beta value of 0.196, and a t-value of 3.755, significant at the 0.000 level. This shows that organizations
engaging in practices such as recycling, reusing, and adopting circular economy strategies are likely to enhance
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their innovative capacities. Diversifying waste management encourages creativity in developing new products,
reducing environmental impact, and improving operational efficiency.
Finally, indoor environmental quality and site sustainability practices have significant positive effects on
innovativeness. Indoor environmental quality has a coefficient of 0.117 and a t-value of 2.212, significant at
0.028, indicating that improving workplace conditions, air quality, and employee comfort fosters creativity and
innovation. Site sustainability practice has a coefficient (B) of 0.233, a beta of 0.266, and a t-value of 5.105,
significant at 0.000, showing that sustainable site management supports innovative strategies. Overall, all six
variables significantly contribute to innovativeness, confirming that sustainability practices are critical drivers
of innovation in South-East Nigeria.
DISCUSSION OF FINDINGS
For hypothesis two (HO2), which states that energy efficiency practice has no significant positive effect on
innovativeness, the regression results reveal an unstandardized coefficient (B) of 0.295, a standardized beta of
0.312, a t-value of 6.276, and a significance level of p = 0.000. Since the p-value is below the 0.05 threshold,
the null hypothesis is rejected, and the alternative hypothesis is accepted. This means energy efficiency
significantly and positively influences innovativeness among businesses in South-East Nigeria. These findings
align with the study by Maria and Garcia (2020), who discovered that green building practices significantly
enhance energy efficiency in commercial buildings, creating opportunities for technological innovation and
improved performance. Similarly, Tunde and Bakare (2021) confirmed that green building practices reduce
energy consumption and improve business competitiveness, supporting the conclusion that energy efficiency
fosters innovation and operational sustainability.
For hypothesis four (HO4), which proposes that water conservation practice has no significant effect on
innovativeness, the results indicate a coefficient (B) of 0.378, a beta of 0.369, a t-value of 7.501, and a p-value
of 0.000. Since the effect is statistically significant, the null hypothesis is rejected, confirming that water
conservation practices positively influence innovativeness. This finding agrees with the study by Amir and
Hussain (2021), which revealed that green building practices significantly enhance water efficiency in
commercial properties, leading to the adoption of innovative technologies like water recycling and smart
metering. Additionally, Fatoumata and Diarra (2022) emphasized that integrating water conservation practices
into urban planning accelerates sustainable development and promotes creativity in resource management.
Therefore, adopting water-saving technologies and designs drives innovation by encouraging firms to explore
environmentally friendly operational strategies.
Regarding hypothesis six (HO6), which states that sustainable material usage has no significant influence on
innovativeness, the regression analysis shows a coefficient (B) of 0.221, a beta of 0.241, a t-value of 5.023,
and a significance level of p = 0.000. These results indicate a significant positive effect, leading to the rejection
of the null hypothesis. The implication is that organizations that integrate sustainable materials into their
operations tend to be more innovative, especially in product development and waste reduction strategies. This
aligns with John and Okafor (2021), who found that although green materials may initially increase
construction costs, they enhance long-term sustainability and cost efficiency, encouraging innovative material
management practices. Similarly, Zhang and Wei (2020) concluded that adopting sustainable materials
improves resource efficiency in industrial facilities, enabling companies to create new products and processes
while reducing environmental impacts.
For hypothesis eight (HO8), which assumes that waste diversification practice has no significant effect on
innovativeness, the findings reveal a coefficient (B) of 0.184, a beta value of 0.196, a t-value of 3.755, and a p-
value of 0.000. Since the result is significant, the null hypothesis is rejected, confirming that waste
diversification positively affects innovativeness among organizations in South-East Nigeria. This conclusion is
consistent with David and Thompson (2020), who reported that green building practices significantly reduce
construction waste and encourage firms to adopt innovative recycling and reuse strategies. Similarly, Enoch
and Kofi (2020) highlighted that adopting green practices in the construction industry leads to innovative
waste management solutions, helping firms minimize costs and environmental impact. Thus, waste
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diversification contributes to innovation by promoting circular economy approaches and fostering the
development of new technologies for resource recovery.
For hypothesis ten (HO10), which proposes that indoor environmental quality has no significant influence on
innovativeness, the regression results show a coefficient (B) of 0.117, a beta value of 0.107, a t-value of 2.212,
and a p-value of 0.028. Since the effect is statistically significant, the null hypothesis is rejected, confirming
that indoor environmental quality positively impacts innovativeness. This finding agrees with John and
Mwangi (2021), who found that improving indoor air quality and ventilation enhances employee well-being
and stimulates creativity. Similarly, Olivia and Thompson (2022) reported that green building practices in
educational institutions significantly improve indoor air quality and lighting conditions, fostering innovative
learning environments. Enhancing indoor environmental quality therefore promotes greater productivity and
creative problem-solving within organizations.
hypothesis twelve (HO12) posits that site sustainability practice has no significant effect on innovativeness,
but the regression analysis shows a coefficient (B) of 0.233, a beta value of 0.266, a t-value of 5.105, and a p-
value of 0.000. Since the relationship is statistically significant, the null hypothesis is rejected. This result
suggests that sustainable site management positively influences innovativeness among businesses in South-
East Nigeria. The findings are supported by Ravi and Kumar (2022), who revealed that integrating green
building practices into housing developments fosters sustainability and innovative urban designs. Similarly,
Ali and Reza (2023) demonstrated that site sustainability measures improve climate resilience and promote
creative approaches to urban planning. Therefore, site sustainability enhances innovation by encouraging
organizations to design environmentally friendly spaces and adopt adaptive operational strategies.
Summary of Findings
This study examines the effect of various green building practices on innovativeness in Southeast Nigeria. The
findings revealed that:
1. Energy efficiency had a significant positive effect on innovativeness, with a coefficient of 0.312, a t-
value of 6.276, and a p-value of 0.000.
2. Water conservation practices demonstrated a highly significant positive influence on innovativeness,
with a coefficient of 0.369, a t-value of 7.501, and a p-value of 0.000.
3. Sustainable materials were found to significantly affect innovativeness, with a coefficient of 0.241, a t-
value of 5.023, and a p-value of 0.000.
4. Waste diversification also showed a significant positive effect on carbon footprint, with a coefficient of
0.196, a t-value of 3.755, and a p-value of 0.000.
5. Indoor environmental quality had a statistically significant positive effect on innovativeness, with a
coefficient of 0.107, a t-value of 2.212, and a p-value of 0.028.
6. Site sustainability exhibited a significant positive effect on innovativeness, with a coefficient of 0.266, a
t-value of 5.105, and a p-value of 0.000.
CONCLUSION
For Model 2, which examined the relationship between these factors and innovativeness, water conservation
practices again showed the strongest effect (β = 0.369, p < 0.001), followed by energy efficiency (β = 0.312, p
< 0.001) and sustainable materials (β = 0.241, p < 0.001). Waste diversification, indoor environmental quality,
and site sustainability equally contributed positively to organizational innovation. These findings imply that
adopting sustainable environmental practices not only enhances carbon footprint performance but also drives
organizational innovativeness, enabling firms to remain competitive, reduce operational costs, and improve
overall environmental and economic outcomes.
RECOMMENDATIONS
1. Organizations should integrate energy-efficient solutions into their production and operational processes,
as this fosters technological advancement and promotes innovative practices.
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2. Companies should adopt innovative water-saving technologies, as optimizing water use can inspire
creative solutions and enhance competitive advantage.
3. Encouraging the use of sustainable materials can stimulate innovative product designs and eco-friendly
solutions, enabling firms to remain competitive in green markets.
4. Firms should view waste as a resource and develop innovative recycling and up cycling strategies that
create new revenue streams and support circular economy initiatives.
5. A healthy and comfortable indoor environment promotes employee creativity and productivity.
Companies should invest in air quality systems, natural lighting, and ergonomic designs to foster
innovation.
6. Green building designs, energy-smart infrastructure, and eco-friendly landscaping should be adopted to
stimulate innovative operational approaches and position firms as sustainability leaders.
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