Driving Environmental and Business Sustainability in the MENA Region: The Role of Global Innovation,Finance, Governance, and Quality

Purpose-This research aims to identify the critical factors influencing environmental and business sustainability in the Middle East and North Africa (MENA) region. It emphasizes the roles of global innovation, governance, finance, and environmental quality, considering the region's unique challenges, such as reliance on fossil fuels, environmental degradation, and increasing climate risks. The study explores how businesses and policymakers can harness these factors to foster sustainable practices, reduce carbon emissions, and build long-term economic resilience.Design/Methodology/Approach-The study employs the Panel Quantile Autoregressive Distributed Lag (QARDL) model to examine the short-and long-term effects of global technological advancements, governance quality, financial development, and other causal factors on carbon emissions across various emission levels (quantiles).Findings-The findings indicate that global innovation in green business practices consistently reduces emissions across all levels, particularly in higher-emission countries. Conversely, economic growth increases emissions, with the effect being more pronounced in nations with higher emissions. Governance, including regulatory support, policy alignment, and corporate responsibility mechanisms, is linked to higher emissions, especially in low-and high-emission contexts. Financial development is shown to increase emissions, except for higher quantiles in the long run. This study provides a comprehensive view of the strategies businesses and governments in the MENA region.Discussion-This study highlights the interconnectedness of innovation, governance, finance, and environmental quality in promoting sustainable business practices in the MENA region. It underscores the need for effective governance measures, including supportive policies and incentives, to encourage innovation and facilitate the widespread adoption of sustainable technologies. Businesses should align their sustainability strategies with regional policies and global innovations to effectively tackle environmental and economic challenges. The study concludes with policy recommendations for businesses and governments to create a conducive environment for sustainable development, emphasizing the need for a comprehensive approach that integrates innovation, governance, green financing, and environmental stewardship.