Consumer eco‐innovation adoption: assessing attitudinal factors and perceived product characteristics

For business and environmental reasons, increased understanding of green consumer behavior is essential. This paper addresses consumer adoption and non‐adoption of a high involvement eco‐innovation (the alternative fuel vehicle, AFV). The purpose is to integrate two research streams to explore factors driving and hindering adoption. The factors are rooted in environmental psychology research and the diffusion of innovation literature. Survey results on Swedish car owners are reported. The results indicate that adopters and non‐adopters differ on norms, attitudes, novelty seeking and on how innovation attributes are perceived. Furthermore, the results show that the groups rank car attributes such as fuel consumption and carbon dioxide emissions differently. The main contribution of the paper is the integration of norms and attitudes together with consumer adoption factors in analyzing green consumer behavior in relation to a high involvement product. The implications for business and marketing strategy and for environmental policy are discussed. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Selling Mobility instead of Cars: New Business Strategies of Automakers and the Impact on Private Vehicle Holding

This article considers the business strategy of an automaker entering the car‐sharing market. Given the high growth of the car‐sharing industry, this could become a new business segment and simultaneously have effects on branding. The considered case is a car‐sharing system called car2go, which was launched by Daimler in 2009. An empirical analysis based on primary data (N = 1881) indicates that private vehicles are reduced as a consumer reaction. This constitutes a potential for environmental gains, as shared and consecutively used cars require less of production resources compared to a higher number of private cars being bought, driven and parked individually. Implications for public policy are that the allocation of public space to car‐sharing systems could result in a net gain of space in cities. Policy makers should also consider the dependency of car‐sharing schemes on municipal support regarding parking spaces and they should anticipate the upcoming electrification. This is the first study on a large‐scale car‐sharing system operated by an automaker using retrospective primary data. It contributes to the assessment of the current trend of car manufacturers launching car‐sharing schemes. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

ON THE ENVIRONMENTAL IMPACT OF CONSUMER LIFESTYLES – USING A JAPANESE ENVIRONMENTAL INPUT–OUTPUT TABLE AND THE LINEAR EXPENDITURE SYSTEM DEMAND FUNCTION

In this study, we undertake some hypothetical experiments and predict the environmental effects of some changes in consumer behavior, using the Japanese Input–Output Table and the Family Income and Expenditure Survey for 2000. We estimate the demand function in a linear expenditure system (LES) and attempt to determine how changes in consumer behavior affect the environmental load induced by household consumption, using the ‘willingness to pay’ concept. Furthermore, we define an index to show the eco-efficiency of consumer behavior. Through such a study, we can determine what action is appropriate for a ‘sustainable consumption’ society. If some change of consumer behavior greatly improved utility while increasing the environmental load, then technological progress to reduce the environmental load must be stimulated. However, if other changes in consumer behavior increase the environmental load while not improving utility very much, then such changes should be strongly discouraged.     

PUBLIC SERVICES MANAGEMENT: ACTIVITIES, INITIATIVES AND LIMITS TO LEARNING

Private sector-style management initiatives to ensure UK public services managers’ learning from private sector management practice are examined, and their rationale questioned. The lack of a coherent, systematic and agreed view of what constitutes ‘management’ and ‘managerial work’ in the private sector is discussed. It is argued that there are reasons for believing that the particular character and organizational contexts of public services will require different managerial behaviours. The manner in which experimental managerial initiatives in some public services have shifted into mandatory innovations is examined. Such innovations can be incompatible with the values of those managing in the public service, who frequently fail to recognize the advantages of late innovation, incrementalism and circumspection. In public services particularly, many managerial activities are the province of ‘non managerial’ staff. Though frequently not considered, the values of these de facto managers may be central to the progress of such innovations. It is further argued that risk-taking as applied in a business context is inappropriate to the degree that public services managers must be concerned with the common weal, equity and accountability. The article concludes with a detailed research agenda to support the need to recognize public services management as a rich and varied area of managerial behaviour in its own right. Its character and variation warrants further investigation as a basis for formulating more appropriate management concepts against which to measure public services managers’ behaviour and performance.     

Consumers' processing of mindful commercial car sharing

Commercial car sharing offers a form of market‐mediated, access‐based consumption with a markedly lower impact on the natural environment than that of car ownership. Consumers adopting such alternative transportation modes are manifesting a marketplace behavior that can be said to be mindful because of the innovative and sustainable nature of car sharing. This study employs behavioral reasoning theory to examine how consumers' value orientations, as well as reasons for and against car sharing, might be used in consumers' processing of mindful commercial car‐sharing adoption. Findings suggest that subjective norms (thoughts of important others for consumers, such as co‐workers) serve an important mediating role for both consumers' value orientations and reasons for car sharing in their relationship with car‐sharing behavior. These results provide marketing researchers important knowledge about green consumption and suggest that practitioners would do well to emphasize the social dimension when marketing environmentally oriented services, such as car sharing.     

Matching structure and strategy: Towards a market orientation in health care

The introduction of an ‘internal’ or ‘managed’ market mechanism into the National Health Service required fundamental structural reorganisation, involving the separation of purchaser and provider functions. While a degree of structural change has occurred among the emergent purchasing organisations subsequent to the initial reforms, there is a lack of corresponding evidence of ongoing structural change in acute provider units. Despite the existence of a direct relationship between organisational structure and strategy, the extent of change in the organisational structure of hospitals is questionable. Indeed at the macro level current acute hospital structures, that is NHS Trusts, are remarkably similar to ‘pre-reform’ structures, despite the unsuitability of these structures for the market orientation required by the internal market. Such prevalence arguably reflects the marginal effect that current managerial structures have had on those delivering services and the predominance of the medical hierarchies. Specifically, those responsible for the marketing of hospital services in current structures are not directly linked to those who deliver the service, in spite of the introduction of clinical directorate structures. Part of a broader study of the market behaviour of acute NHS Trusts in Scotland, this paper explores the organisational avenues open to health care providers to overcome this separation in the pursuit of market-led service delivery and concomitant market orientation.     

Caveat emptor – let the buyer beware! environmental labelling and the limitations of ‘green’ consumerism

In recent years, the idea of ‘green’ or ‘political’ consumers expressing their political beliefs in everyday life has been widely embraced. Eager to satisfy the needs of this new market segment, firms have allocated substantial resources to environmental management, social accountability, corporate citizenship, occupational health and safety etc. During the 1990s, the industrialized world also witnessed a growing number of environmental labels, expected to guide the political consumers in their shopping decisions. Evaluations of these environmental labelling (eco‐labelling) programmes indicate that some labels and product groups receive a great deal of attention while others remain in obscurity. To understand these differences, the paper will discuss some of the factors that determine the market impact of environmental labelling. It is concluded that the concept of the ‘green’ consumer is over‐simplified and fails to capture the actual complexity of consumer values, attitudes and behaviour. The results are based on existing literature and our own empirical findings. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Citizens’ Entrepreneurial Role in Public Service Provision

Abstract

In public service provision, citizens are conventionally reactive, portrayed as ‘users’, ‘customers’, ‘co-producers’, or ‘participators.’ Occasionally, following dissatisfaction, citizens themselves proactively create alternative services, namely, entrepreneurial exit (EE). Laymen then become providers of previously governmental professional services. Drawing upon six EE manifestations, findings suggest that if the newly-introduced service gains social acceptance, existing provision may change in one of the three modes: (a) First-order incremental change, legitimization of EE as an alternative service provision; (b) Second-order participative change, increased public participation in service provision fostered by EE; and (c) Third-order reformative change, existing service provision is reformed to satisfy citizens’ demands.     

Adopting sustainable innovation: what makes consumers sign up to green electricity?

This paper investigates what encourages consumers to adopt a green electricity tariff. When people decide to adopt an innovation, such as green electricity, they consider not only functionality, usability, costs and intended outcomes, but also what the innovation means to them, for example, the way it reflects their identity, image, memberships, values and norms. The study reviews the theoretical frameworks of innovation adoption and consumption, and cognitive and normative behaviour, relevant to consumer adoption of pro‐environmental innovations, and develops a research framework. Through focus group discussions, a questionnaire survey with 103 respondents and an interview with 10 people, the study finds that consumers sympathetic to environmental issues do not necessarily adopt green electricity. This is due to lack of strong social norms and personal relevance, inconvenience of switching, uncertainty about the quality of green electricity and lack of accurate information. The implications of these findings for strategy, policy and future research are explored. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Environmental Innovations and Strategies for the Development of New Production Technologies: Empirical Evidence from Europe

This study empirically investigates whether firms' improvements in energy and material efficiency are related to the extent to which external partners are involved in the development of process innovations. In particular, we distinguish three different process innovation strategies: firms may follow an ‘in‐house strategy’ and develop their innovations mainly within the firm, they may opt for an ‘external strategy’ and let mainly external partners develop innovations, or they may opt for a ‘cooperation strategy’ and develop innovations jointly with external partners. Using data of manufacturing firms obtained from the fourth Community Innovation Survey covering 14 European countries, we conduct total sample as well as industry‐ and country‐specific regressions. Our results indicate that firms following the ‘external strategy’ tend to have a lower probability of introducing process innovations leading to a marked increase in energy and material efficiency. Moreover, in contrast to extant literature, none of our results suggests that companies following a ‘cooperation strategy’ experience greater environmental innovation performance. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Modelling of combinable relationship-based composition service network and the theoretical proof of its scale-free characteristics

Existing works on service composition are primarily based on the requirements of service composition, such as describing language supporting service composition, service composition framework, mechanism and method for service composition, and service composition validation. Few works have been carried out from the perspective of combinable relationship among composite services and composition service network. This article emphasises on combinable relationship-based composition service network, i.e. CoRCS-Net. The principles for establishing and modelling CoRCS-Net were studied, and nine combinable relationships among services in CoRCS-Net were investigated and 14 elementary evolving operators for CoRCS-Net dynamic evolution were designed. According to the definition of scale-free network (SFN) and the investigations on its related research achievements, it is supposed that ‘CoRCS-Net is a scale-free network’ in this study. In order to prove the theoretical hypothesis, the concepts of combinable strength and variation of combinable strength were introduced, and combinable strength is used to describe the invoking times of a service being invoked for service composition. First we calculate the real time variation of combinable strength of an arbitrary service in CoRCS-Net, and then obtain the corresponding real time combinable strength and investigate its distribution for all services in CoRCS-Net. It is discovered that ‘like many nature and social phenomenon, CoRCS-Net is “scale-free”, and it is constructed by few “active services” and a great deal of “silent services”. In the process of service composition, the invoking times for majority services are very small, while only few services are invoked frequently, and the probability (or invoking times) for the services in a CoRCS-Net to be invoked for service composition decays as a power-law’.     

The greening dutchman: Philips' process of green flagging to drive sustainable innovations

Sustainability innovation research often focuses on the interrelation and the interaction of influencing factors and actors while neglecting the importance of firm internal initiatives. Based on a longitudinal case study of the Dutch company Royal Philips Electronics, we develop the concept of ‘green flagging’ as a groundbreaking corporate sustainability innovation strategy. This paper describes how Philips uses this approach in its Green Flagship Program (GFP). Philips' GFP is particularly interesting since it sets specific targets across all its business units, thus driving the integration of sustainability innovation into its core business. This study suggests that the impact of sustainability innovations can be improved by focusing on sustainability as an explicit goal as well as processes and projects instead of merely concentrating on content and structure. We discuss the possibilities and limitations of these findings for theory and research on sustainability innovation strategies. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Environmental regulation and innovation driving ecological design in the UK automotive industry

The theory of ecological modernization asserts that economic and environmental goals can be integrated within a framework of industrial modernity. Its central tenet is that environmental regulation can stimulate the application of ‘clean’ technologies or techniques. Ecological modernization also contends that environmental regulation can offer business benefits from innovation through improved product design and economic performance. The EU End of Life Vehicles Directive (ELVD) reflects many of these principles, as it compels all car manufacturers to ‘take back’ and dismantle vehicles at the end of their useful lives and to remove the hazardous substances from the production process. Each component will then be either reused or recycled. The legislation forces designers to introduce ‘clean design’ and ‘design for disassembly’ practices. In light of this, we examine the impact of the directive on UK automotive component manufacturers. We find limited evidence that the EU ELVD Directive has driven product innovation beyond short‐term, incremental technological trajectories. We therefore conclude that a more radical approach, in line with the ‘dematerialization’ thesis by Dobers and Wolff (1999), is needed to generate more radical, ecological design solutions within the UK automotive industry. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Strategic Practice Drift: How Open Strategy Infiltrates the Strategy Process

This paper builds theory on the process of open-strategy infiltration through an ethnographic study investigating how open strategy entered a financial services firm's strategy process behind the backs of top managers. Based on our analysis, we show how open strategy infiltrates the strategy process through a ‘strategic practice drift’, i.e., a gradual and partly unnoticed shift towards open strategy that occurs through ‘accommodating’ and ‘legitimizing’ the performance of transparency and inclusion in the strategy process. We show how the ‘goal-based ambiguity’ and ‘procedural certainty’ of initiatives that latently imply the performance of transparency and inclusion in the strategy process enable open-strategy infiltration. Furthermore, we show how top managers' ‘goal-based rationalization’ and ‘procedural renegotiation’ of practising transparency and inclusion contribute to the eventual reproduction of open strategy in the strategy process. Our model generates an understanding of how and why open strategy can enter the strategy process behind the backs of top managers and adds nuance to extant understandings of the role of top managers in this process. In addition, our findings contribute to research on strategy as practice by theorizing ‘strategic practice drifts’ and extending our understanding of the role of ambiguity therein.     

Variable pricing business solutions in a decomposed business environment

Evolving business models and technology advances have facilitated the creation of innovative pricing strategies. Variable pricing represents the ability to configure a pricing schedule from a set of pricing options such as fixed cost, usage, shared benefit, and performance. The objective of variable pricing is to improve a pricing schedule for the mutual benefits of the provider and consumer, based on an evaluation of criteria that results in the setting of a price as a function of the expected value to be derived, as well as the time and materials used. In this paper, we focus on the variable pricing of ‘business solutions’, which is abstractly defined as the capabilities that enable or add value to the purposes of an enterprise. In a decomposed business environment, the structure of a business is partitioned into discrete business components that are assigned specific purposes and are endowed with resources to meet them. Business components interact to achieve business goals, and do so by exposing their capabilities through business services they offer. Business services have suitable levels of granularity offering constituent units of function, which, when selectively chosen and composed, form business solutions. We assert that business services are also suitable units for variable pricing, the implication being that pricing for a given business solution is an evaluation of the variable pricing of its assemblage of business services. The benefits of this ‘variable price composition’ approach offer greater accuracy for the pricing plan, coupled with increased flexibility to compose, modify, calculate and articulate pricing for business solutions.     

Can breakthrough innovations serve the poor (bop) and create reputational (CSR) value? Indian case studies

Though radical and complex reengineered product innovations are not discussed much in either the ‘Corporate Social Responsibility’ (CSR) or the ‘Base of the Income Pyramid’ (BoP) literature, both support the premise that if an innovation serves the poor, then it will generate CSR gains. To test this assumption with respect to breakthrough technological innovations, the present paper proposes a theoretical construct and uses it to examine two innovations launched in India, namely genetically modified cotton seeds and a HIV/AIDS drugs cocktail. Because firms decide on innovation outlays to maximize profit without including an explicit CSR component, it develops indicators to examine if any involuntary CSR effort was embedded in the innovation strategy. It confirms that though firms do not invest in innovation to earn CSR credit, some breakthrough technological innovations, not all, can trigger CSR returns. There are tradeoffs between CSR effort and BoP innovation market value. Higher the consumer surplus generated by the innovation, better the bargaining position of the innovator vis-à-vis contestations. The windows of opportunity for generating BoP market value and CSR value are context specific. A robust business strategy rather than philanthropy is needed for breakthrough technological innovations to be marketed to BoP communities.     

Towards commercial and environmental excellence: A green portfolio matrix

This article examines the strategic framework and options available for product strategy towards commercial and environmental excellence. It defines the environmental dimension as a ‘moving target’, explores a conceptual framework to integrate commercial and environmental dimensions and elaborates a ‘green portfolio matrix’. The proposed matrix is also empirically investigated as to its practical validity by using a set of secondary data including twelve product cases. Using the matrix, a company can diagnose its existing product mix from an environmental point of view, and furthermore can establish future ‘targets’ for an environmentally-friendly product portfolio. In addition, the matrix can be used as a framework for comparative analyses between strategic business units or for longitudinal assessment of a specific business entity.     

Factors explaining shared clothes consumption in China: Individual benefit or planet concern?

Shared clothes represent one example of the sharing economy whereby users provide a variety of clothes to people at fees representing mutual value through online platforms. Sharing creates a more circular economy and represents one form of sustainable consumption. Many studies have proposed environmental concern as a key influencer of customer intention and behaviour, yet other motivations may be driving sustainable consumption behaviours such as sharing clothes. This study aims to expand our understanding of shared clothes in line with attitude–intention–behaviour theory. The aim is to examine the moderating role of environmental concern in the relationship between perceived economic, functional (app quality/platform) benefit, reputation and trust of the app/platform on (a) intention to use online clothes‐sharing platforms and (b) spending behaviour of current users of the same sharing platform. A total of 250 and 232 usable questionnaires were gathered from potential and current users of shared clothing. Results reveal that environmental concerns are higher for current users when compared with potential users of the sharing platform. Results of this study identify that personal considerations such as economic benefit outweigh environmental considerations for shared clothes consumers. Practical implications, limitations, and future directions are highlighted.     

后疫情时期服务业发展的思考与对策——基于服务生态系统的视角

服务生态系统是服务企业进行资源整合、服务交换和价值共创的重要场所,也是数字经济背景下服务产业实现升级发展的重要手段。本文基于服务生态系统理论,通过文献梳理阐明了服务业服务生态系统中价值创造、参与者关系和共享制度等基本问题,分析了新冠肺炎疫情对服务业造成的巨大影响即减少了参与者互动和价值共创、缩小了生态系统规模、加剧了生态系统动荡、催生出大量创新。最后为后疫情时期的服务业发展提出加强服务企业扶持力度、通过科技手段搭建互动桥梁、坚定服务业的发展方向、利用变革期大力发展服务创新等对策建议。     

Capability building through innovation for unserved lower end mega markets

Although product innovation for unserved lower end mega markets in large developing countries has been recognized as an opportunity for improving the competitiveness of local firms, limited research has been conducted that explicitly explores how innovation capabilities can be built for these markets. This study investigates Tata Motors' Nano as an exploratory case of building innovation capabilities. This paper shows that the building of innovation capability could be achieved through creating a process that overcomes ‘the deficiency problem’ in generating radically cheap priced original products.The study's contribution to the literature is that it addresses issues of building local firms' innovation capabilities through creating original products for the unserved lower end market, in which advanced country firms have limited experience.Nano, as an unprecedented innovation in the automobile industry, reveals a path to building innovation capability that has not previously been observed. We show that detailed processes involved in generating an original product for the lower end market provide insights on the strategy in terms of target price setting, initiating innovation process overcoming ‘the deficiency problem’, and creation of complementary resources.