Abayomi Olusegun Ogunsanwo & Abimbola Omolade Odubanjo

This study uses a thorough structural equation modelling (SEM) analysis to delve into the complex interactions between social innovation and environmental challenges. The study focuses on three crucial sustainable innovation facets: green management, circular economy, and green energy, and how they together affect environmental challenges in Nigeria. For model analysis, the study uses AMOS Graphics Version 26. The SEM framework clarifies the interactions between the latent dependent variable (Environmental Challenges) and the latent independent variables (Green Energy, Circular Economy, and Green Management). These links are clarified by careful statistical analyses, such as mean analysis, effect size estimation, and residual error assessment. The significance of each social innovation aspect in impacting environmental challenges is highlighted by the findings. Notably, the most powerful driver is green management, which is followed by green energy and circular economy. The favourable effects of green energy and green management on environmental challenges are confirmed by regression weight analysis, but the influence of circular economy is less pronounced. The Squared Multiple Correlations support these associations even more, showing that the combined influence of Social Innovation variables is responsible for about 80.7% of the variability in Environmental Challenges. The findings of this study support the development of social innovation practices, with a focus on green management programmes, as a potential means of solving environmental problems. Keywords: Green Energy, Circular Economy, Green Management 0150