Sustainability and firms’ green innovation: the role of natural disasters

This article aims to investigate how natural disasters influence firms’ pursuit of green innovation, a key factor in enhancing operational resilience and sustainability. We examine the intricate dynamics of how these disasters impact the pursuit of green innovation, revealing essential yet overlooked aspects of corporate sustainability amid environmental uncertainties. Drawing from a comprehensive literature review, we argue that the impact of natural disasters on firms depends on uncertainty levels and the gap between a firm’s actual environmental performance and its aspiration level. To aid firms in navigating these challenges, we propose innovative strategies for pursuing green innovation that consider the inherent uncertainty linked to natural disasters. Additionally, we contrast multinational enterprises with domestic firms, introducing hypotheses to highlight their response differences in the face of disasters. This article not only contributes to academic discourse but also offers firms and policy-makers vital insights for steering towards a sustainable and resilient future.