Purpose: The petrochemical industry is considered one of the major contributors to environmental pollution due to its high-energy consumption and greenhouse gas emissions. In recent years, with increasing environmental awareness and stricter sustainability regulations, petrochemical companies have been under growing pressure to reduce the negative impact of their activities on the environment. In this regard, the study examines the impact of regulatory pressure and customer pressure on sustainable innovation in petrochemical companies and analyzes the mediating role of opportunity recognition and exploitation.
Methodology: This research is quantitative in terms of data, and descriptive-correlational in terms of research design. The statistical population of the research consists of manufacturing and service companies active in the petrochemical industry. After distributing questionnaires, 336 questionnaires from 288 companies were returned. Structural equation modeling (SEM) and PLS software were used for data analysis and hypothesis testing.
Findings: The results indicate that regulatory pressure has a direct and significant effect on sustainable innovation. Companies facing stricter regulations are more inclined to invest in green technologies and develop environmentally friendly products. Moreover, customer pressure plays an important role in encouraging firms to adopt sustainable innovation strategies, as growing demand for eco-friendly products and social responsibility drives companies toward sustainable innovation.
Conclution: government can encourage companies to adopt sustainable innovations by offering financial incentives and facilitating R&D conditions. It's also suggested that petrochemical companies enhance their competitive advantage in global markets by utilizing strategies such as transparent environmental reporting, developing green technologies, and collaborating with innovators.