How does cultural diversity determine green innovation? New empirical evidence from Asia region

National culture and environmental sustainability are fundamental topics within the realms of social and environmental economics. These subjects have been extensively discussed in contemporary literature as standalone themes. However, it's worth noting that there is a noticeable gap in the existing literature. Specifically, there is limited exploration regarding the influence of national culture on a country's green innovation performance. To address this gap, the present study aims to investigate the empirical relationship between cultural diversity and green innovation performance. To accomplish this, we utilize a dataset spanning two decades (2000–2019) of data from Asian economies. We assess the impact of various cultural dimensions, as proposed by Hofstede, on multiple green innovation practices. The empirical analysis was conducted by utilizing the system GMM (generalized method of moments) model. The statistical analysis uncovers a significant negative effect of power distance on green innovation performance. Conversely, other proxies of national culture, including individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence, reveal a positive association with green innovation. This study provides valuable insights for policymakers. It sheds light on how environmental sustainability varies among nations characterized by diverse cultural backgrounds. Furthermore, our empirical analysis extends the existing body of literature by proposing that cultural settings play a potential role in shaping the landscape of green innovation.