SCHOOL OF BUSINESS
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Item Assessing the Mediating Role of Green Innovation on Organizational Performance of SMEs in Lusaka, Zambia(University of Lusaka, 2025) BWALYA, Hellen PhiriGreen innovation is increasingly recognized as a vital component of sustainable development and business performance. This study explored the relationship between green innovation practices and organizational performance among small and medium sized enterprises (SMEs) in Lusaka, Zambia. The research addressed the gap in existing literature regarding the influence of green practices on SME performance in developing economies. Specifically, the study examined the impact of green production practices, green product innovation, green technology usage, and green supply chain practices on operational efficiency, customer satisfaction, profitability, and market competitiveness. The study adopted a quantitative research design, employing structured questionnaires to collect data from 370 SMEs, with 298 valid responses analysed. Descriptive and inferential statistical analyses, including correlation and multiple regression, were conducted to evaluate the relationships between variables. Results indicated significant positive correlations between all dimensions of green innovation and organizational performance. Among the independent variables, green supply chain practices demonstrated the strongest effect, emphasizing their critical role in enhancing market competitiveness. Green product innovation showed a substantial impact on customer satisfaction, while green technology usage and green production practices significantly contributed to profitability and operational efficiency, respectively. The findings underscore the strategic importance of adopting green innovation practices for SMEs in resource-constrained settings. These practices not only improve performance outcomes but also align with global sustainability goals, offering SMEs a competitive edge in increasingly environmentally conscious markets. The study contributes to the literature by validating theoretical frameworks such as the Resource Based View and Stakeholder Theory within the context of SMEs in a developing economy. However, limitations, including the focus on SMEs in Lusaka and the reliance on cross-sectional data, suggest the need for further research in diverse geographic and temporal contexts. Future studies could adopt longitudinal designs and investigate additional variables, such as regulatory frameworks, to provide a more holistic understanding of green innovation’s role in business performance. By providing empirical evidence on the benefits of green innovation, this study offers actionable insights for SME managers, policymakers, and stakeholders. It advocates for increased investment in sustainable practices and policies that support the integration of green innovation into business strategies, contributing to both organizational success and environmental sustainability. Keywords: Green innovation, organizational performance, SMEs, green supply chain, sustainability, profitability