The effect of regional factors in the development of eco‐innovations in the firm

This research addresses the study of the effect of regional factors in the development of eco‐innovations in the firm. We assume the hypothesis of regional heterogeneity, that is, geographical factors and the regional heterogeneity play an important role in determining the innovations in the firms. In this line, we will approach our study from the perspective of regional innovation systems (RISs). Therefore, our research question involves the evaluation of regional factors as determinants of eco‐innovation developing in the firm. To examine these questions, the PITEC database that covers the period 2011–2013 was used. Overall, 5,461 firms have been employed for the ordinal logit regression model. This research contributes to the studies of eco‐innovation, extending the investigation into drivers of eco‐innovation, and highlights the impact that RIS has on the eco‐innovative development in the firm. We find that regional interaction and regional characteristics are key elements for the development of eco‐innovation in firms. Thus, the density of companies in the region, the regional per capita income, and the existence of financing mechanisms are key elements for the eco‐innovative development in the firm.     

Energy eco‐innovations for sustainable development: Exploring organizational strategic capabilities through an energy cultures framework

This article reports on research on energy eco‐innovation using case studies of firms. Positioning energy efficiency changes in an organization as “eco‐innovations,” the paper examines the firm‐level resources involved for these to be successful. To identify these resources, the energy cultures (EC) framework, an organizing tool to understand energy behaviour, is drawn on. From an analysis of 142 case studies of successful business and energy change, three models are developed. It is found that the EC framework (consisting of norms, material culture, and practices) makes explicit key resources involved in developing energy eco‐innovations. The findings show that for an eco‐innovation capability, there is a need to align the physical resources with intangible resources to lead to learning and knowledge that, in turn, needs to be aligned with the firm strategies. This research has implications for developing company strategy and practice to drive energy eco‐innovations.     

Sustainability‐oriented capabilities for eco‐innovation: Meeting the regulatory,technology, and market demands

Despite consensus in the literature that regulation, technology push, and market pull drive eco‐innovation (EI), evidence remains limited on the diverse firm capabilities needed to boost EI. Building on the natural‐resource‐based view of the firm and the EI literature, this paper posits that firms need to renew and realign their capabilities, and ultimately develop distinctive sustainability‐oriented capabilities, in order to meet the rapidly changing regulatory, technology, and market demands. Results of the analysis, based on a survey of U.K. firms, reveal that EIs are more likely to arise when firms (a) build capabilities on voluntary self‐regulation (i.e., executive driven environmental management system and corporate social responsibility) because such organizational capabilities allow them to address increasing regulatory pressures; (b) invest in environmental research and development (i.e., eco‐R&D)—instead of generic research and development—because it provides them with the relevant and specific technological capabilities to tackle technology shifts towards sustainability; and (c) develop capabilities in green market sensing as such capabilities allow them to address green consumption needs.     

Environmental management capabilities for a “circular eco‐innovation”

At a micro level, eco‐innovation marks a transition towards a circular economy (CE), and standardised routines and controls are being implemented by businesses to introduce eco‐innovative processes and thus a circular business model. Eco‐innovation applied to a circular model implies changes to companies' environmental management and accounting practices used to manage natural resources. In this context, this study analyses and measures formal and informal environmental management systems, such as certification standards and other management and environmental accounting procedures used in eco‐innovation and the CE within the dynamic capabilities theoretical framework. The study also investigates the cause‐and‐effect relationship between firms' “circular eco‐innovation” and environmental capabilities using partial least squares structural equation modelling and tests it using a sample of Spanish companies. This study offers new knowledge about the interposition of business eco‐innovation and CE‐related activities introduced by firms from the dynamic capabilities perspective.     

Supply chain collaboration and eco‐innovations: An institutional perspective from China

This study explores the impact of supply chain collaboration on eco‐innovations in the context of 220 Chinese manufacturing supplier firms involved in global supply chain networks. It investigates how supplier and customer collaborations help firms to enhance product eco‐innovations, and/or process eco‐innovations, and how the institutional context (i.e., regulatory, market, and community pressures) influences these relationships. The structural equation modeling approach is used to analyze the data captured from medium and large manufacturing enterprises in three major sectors: automotive, electronics, and textiles. The results show that community pressure has a positive effect on supplier collaboration, which further leads to enhanced process eco‐innovation. On the other hand, the findings indicate that while market pressure enhances customer collaboration, this does not reinforce product eco‐innovation. Contrary to our expectation, regulatory pressures do not impact supplier or customer collaboration for innovation. Overall, different institutional factors indicate divergent effects on supply chain collaboration and product/process eco‐innovation. The importance of normative pressures, such as those applied through the local community and interest groups, for eco‐innovations in production processes is further discussed as a typical feature of the institutional environment of Chinese supplier firms.     

Successful eco‐innovators: Exploring the association between open inbound knowledge strategies and the performance of eco‐innovative firms

The main purpose of this paper is to analyse the association between open inbound knowledge strategies and the performance of eco‐innovative firms in the food and beverage industry. We propose a mixed framework based on the eco‐innovation literature and the open innovation approach. We consider the characteristics in a traditional sector based upon a resource‐based perspective. Three types of firms are distinguished in terms of their sales growth in the Spanish food industry from the least to the most successful eco‐innovators. Using multinomial logistic regression models, it is shown that the diversity of collaborators (breadth of external sources of knowledge) and joint adoption of product and process eco‐innovations are positively associated with the probability of achieving high sales growth. Moreover, we find an inverted U‐shaped relationship between the breadth of the external search and firm performance, but only for the group of the most successful firms. Moreover, operational flexibility, knowledge‐based capabilities and company size are also positively related to the group of successful eco‐innovators.     

Corporate sustainability,ecological modernization and the policy process in the South African automotive industry

In the past decade, the plea for corporate sustainability has gathered momentum and protecting the environment is one aspect for organizations to address if they are to conduct business in a sustainable manner. In this paper, we present the results of a questionnaire survey on the state of corporate sustainability within the South African automotive industry. The survey focused on the meaning and relevance of sustainability to South African automotive companies, and their use of different approaches to implement sustainability in corporate practice. On this score, the paper seeks to analyze and compare the levels of voluntary environmental initiatives between large and small and medium‐sized enterprises within the automotive milieu. Survey results reveal that a majority of automotive companies have sought to improve their environmental performance by integrating environmental considerations into their core activities. Although the majority of these companies have standardized EMSs, our analysis reveals considerable differences between companies' approaches to corporate sustainability. In particular, they varied in the extent to which procedures were formalized and documented behind the corporate rhetoric of a high commitment to sustainability. The paper concludes by prescribing a number of recommendations as to how to engage and promote more widely the South African automobile manufacturing companies in environmental change. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Innovation intensity,creativity enhancement,and eco‐innovation strategy: The roles of customer demand and environmental regulation

This study develops a contingency framework to investigate how and when innovation intensity and creativity enhancement affect a firm's eco‐innovation strategy by drawing upon the perspectives of the resource‐based view and stakeholder theory. This investigation aims to explore whether firms with high innovation intensity and creativity enhancement really pursue eco‐innovation strategy. Our examination is based on a sample of 2,126 manufacturing firms. By using a hierarchical regression, the results reveal that the effects of innovation intensity and creativity enhancement on eco‐innovation strategy depend on customer demand and environmental regulation. Specifically, customer demand positively moderates the effects of innovation intensity and creativity enhancement on eco‐innovation strategy, whereas existing regulation has a weaker effect on the relationship between innovation activities and eco‐innovation strategy than that of anticipated regulation.     

Innovation as a driver of eco‐innovation in the firm: An approach from the dynamic capabilities theory

The aim of this study is to investigate how innovative capabilities of the firm affect eco‐innovation from a dynamic capability lens. We build on OECD research to conceptualise eco‐innovation as the capacity with which firms modify, redesign, and create products, processes, procedures, and organisations in order to reduce environmental impact. We propose and test the temporal and relational properties of eco‐innovation as a capability. We demonstrate that eco‐innovation possesses two properties of innovative capabilities, namely, persistence over time and interrelation with other innovations. We thus shed new light on the mechanism through which firms engage in eco‐innovation. We also provide empirical evidence to the debate on the relationship between the “normal” innovation (technological or nontechnological) and eco‐innovation. We show that eco‐innovation and innovation are interrelated both simultaneously and sequentially. Moreover, we show that innovation capabilities and eco‐innovation are not only related, but they also have a complementary nature, which facilitates the development of future eco‐innovation.     

Innovation Capacity and the Implementation of Eco‐innovation: Toward a Contingency Perspective

This study develops a framework by drawing on the perspectives of contingency theory to investigate how innovation capacity affects eco‐innovation. The examination covers four moderators, including customer requirement, export destination, environmental regulation and government subsidy, and focuses on the types of eco‐innovation concerning pollution and waste. A sample of 2964 manufacturing firms from the Taiwanese Technological Innovation Survey is utilized to test the hypotheses. A moderated hierarchical logit method is adopted to analyze the data. The results overall suggest that the effect of innovation capacity on eco‐innovation depends on the levels of the four moderators. Specifically, the results show that innovation capacity has different effects on eco‐innovation when customers have a demand for eco‐innovation, export markets have high environmental awareness, future environmental regulations are expected, and the government provides a subsidy for environmental innovation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance

Today, firms are faced with a number of environmental challenges, such as global warming, pollution control and declining natural resources. While there is increasing pressure to deliver environmentally friendly products and services, little is known about what drives the many different types of environmental innovation, or how such pursuits' impact firm performance. Using a sample of 2181 firms, this paper examines the factors that drive nine different types of eco‐innovation in Ireland, and assesses how such innovations impact firm performance. We find that, while demand‐side, supply‐side and regulatory drivers impact on the likelihood of a firm engaging in eco‐innovation, the relative magnitudes of these impacts vary across the types of eco‐innovation considered. Moreover, we find that only two of the nine types of eco‐innovation positively impact firm performance. The results point to regulation and customer pressure as viable mechanisms through which firms can be encouraged to eco‐innovate. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

ISO 14001, EMAS and environmental performance: A meta‐analysis

The adoption of voluntary environmental certifications such as ISO 14001 and Eco‐Management and Audit Scheme (EMAS) has gained momentum in the last two decades. The scholarly literature has analyzed in depth the performance implications of the adoption of these certificates. Yet the findings are scattered and inconclusive. This article aims to shed light on this issue by meta‐analyzing the influence of the adoption of voluntary environmental certifications on corporate environmental performance, drawing on a sample of 53 scholarly studies analyzing a total of 182,926 companies. The findings show a positive influence of ISO 14001 and EMAS certifications on corporate environmental performance. A set of underlying moderating effects are also identified, such as a more pronounced positive effect for adoptions based on environmental innovation and for firms with a more mature certification. Implications for scholars, managers, and other stakeholders are discussed.     

Sustainability Strategy and Eco‐Innovation: A Moderation Model

This study develops a moderation model to examine the role of a proactive environmental strategy on eco‐innovation. Drawing upon the perspectives of contingency theory, this study argues that the impacts of sustainability strategy on eco‐innovation depend on market demand, innovation intensity and government subsidy. The sample used to test the hypotheses is obtained from the Community Innovation Survey in Taiwan. A total of 2955 manufacturing firms are included in the final sample. A logit moderating regression is adopted to analyze the models. The results reveal that market demand and government subsidy positively moderate the relationship between environmental strategy and eco‐innovation. Specifically, firms are more likely to adopt a proactive environmental strategy to improve eco‐innovation under high levels of market demand and government subsidy. Furthermore, the results indicate that innovation intensity affects the effect of environmental strategy on eco‐innovation, but the direction of the influence varies with different categories of eco‐innovation. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

Drivers and barriers of eco‐innovation types for sustainable transitions: A quantitative perspective

Firms are influenced by internal factors (resources and capabilities) and external factors (e.g., regulation) when taking the decision to eco‐innovate. However, the analysis of the internal factors has received much less attention than the external ones. This paper aims to fill this gap in the literature by analyzing the role of resources, competences, and dynamic capabilities (RCCs) as determinants (drivers and barriers) of different eco‐innovation (EI) types. Those EI types contribute differently to the sustainable transition of the economy and society, that is, towards the circular economy. The statistical analyses reveal that RCCs are quite relevant as determinants of EIs, and that different RCCs are more or less relevant for different EI types. In particular, the determinants of systemic and radical EIs substantially differ from those for continuous improvements. Our results suggest that physical RCCs, involvement in green supply chains, an EI‐friendly corporate culture, technology‐push and market‐pull, and internal financing resources represent drivers to these EIs, whereas cooperation, organizational learning, an ISO (International Organization for Standardization) ecological certification, and technological path dependency are barriers. The results may guide firms to pursue competitive and sustainable advantage by innovating through certain EI types corresponding to available and dedicated RCCs. They may also be useful to policy makers who are willing to promote specific EI types.     

Strategic inter‐organizational environmentalism in the US: A multi‐sectoral perspective of alternating eco‐policy roles

During the last several decades, numerous policies and programs intended to advance environmental goals have been formulated in the US by governmental bodies and implemented by businesses and nongovernmental organizations. This article forwards a multi‐sectoral perspective that business and nonprofit organizations have also been significantly involved in environmental policy and program formulation, as well as implementation, and that governments have also fulfilled the latter strategic role in US environmental policy. In this article, nine US environmental initiatives are described and categorized according to which of the three sectors' organizations were significant formulators of the programs and which were significant implementors. Implications for future research include investigation of other environmental dyadic program combinations in addition to those presented, extension of the present analysis beyond dyads into environmental policy networks, inclusion of the strategic environmental program evaluation stage to complement formulation and implementation and exploration of effectiveness variables in cross‐sectoral, inter‐organizational collaborations. Implications for educators and practitioners are also presented. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment.     

Outcomes of Environmental Management Systems: the Role of Motivations and Firms’ Characteristics

This article analyzes the influence of the sources of motivation that lead companies to adopt environmental management systems (EMSs) on the outcomes of these systems. A set of hypotheses derived from an extensive review of the literature is analyzed using cluster analysis – in order to identify groups of companies – as well as correlation and regression analyses, with data obtained from a survey of 361 Spanish organizations that have environmental certification. The results reveal that, for the groups identified, companies from the holistic cluster (with high levels of both internal and external drivers) and from the internal focus cluster (with more intensive internal sources of motivation) secure greater benefits from the process of adopting an EMS. This article also sheds light on the influence on the outcomes of some variables that have been under‐researched, such as the economic resources invested in an EMS and whether or not the certified companies belong to a sector with high environmental pressure. The findings help to characterize the firms with environmental certification and may also help managers, policy makers and other stakeholders to anticipate the potential benefits of EMSs. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Eco‐innovation and firm growth in the circular economy: Evidence from European small‐ and medium‐sized enterprises

As the circular economy (CE) concept gains growing popularity among consumers and producers, small‐ and medium‐sized enterprises (SMEs) increasingly look for ways to reorganize their offering and operations to integrate into the CE. This study examines the impact of (a) circular eco‐innovations and (b) external funding available for CE activities on the growth of European SMEs using a data set of 5,100 SMEs across 28 European countries in 2016. Findings reveal that a significant threshold investment (i.e., higher than 10% of revenues) into circular eco‐innovations is required for SMEs to benefit from investing into the CE. Moreover, the majority of circular eco‐innovations fail to boost the growth rates of SMEs, with the exception of investments into eco‐design innovations. Although traditional forms of debt and grant finance targeted to CE activities are found to have no or negative impact on the growth of SMEs, equity finance (i.e., angel and venture capital investments) contributes positively to their growth. The study offers insights into the lower levels of SME engagement in the CE as well as policy implications for improving engagement.     

Survival of the fittest: The impact of eco‐certification and reputation on firm performance

Owing to the increased trend for organic products and the concept of sustainable development, firms must invest in valuable and unique resources to achieve long‐term success and gain competitive advantages. Building on insights from the resource‐based view and natural‐resource‐based view of the firm, the study focuses on the contribution of corporate reputation and eco‐certification as intangible influences on corporate performance. Duration analysis is applied on a sample of 1,572 German wineries over the period 1994 to 2017. The results indicate that individual reputation and eco‐certification have a statistically significant and positively impact on corporate performance, whereas there is no clear evidence of this relationship for collective reputation. In addition, especially those firms with high individual reputation benefit most from eco‐certification. These results are robust across different parametric and semiparametric model estimations.     

An analysis of environmental sustainability in small & medium‐sized enterprises: Patterns and trends

One of the greatest challenges facing the world today is climate change. The need to consistently advance with environmentally sustainable practices in today's businesses is crucial, and businesses are demanded to be more environmentally sustainable every day. This study conducts an analysis of the literature on small and medium‐sized enterprises' (SMEs) environmental sustainability by carefully examining 122 studies from 58 journals published from 2013 to 2019. We investigate the trends in drivers and barriers of sustainability adoption to inform both SMEs managers and policymakers. Our results also classify the reviewed studies on the basis of their methodologies and show the distribution of studies across industry sectors and locations in order to set directions for future research on sustainability practices of SMEs.     

Eco‐efficiency: GHG reduction related environmental and economic performance. The case of the companies participating in the EU Emissions Trading Scheme

Empirical findings on eco‐efficiency are still inconsistent. Using survey data based on a sample of 283 European carbon‐intensive companies participating in the EU ETS between 2005 and 2012, this article investigates the causal relationships between the corporate environmental strategy focus, proactive GHG reductions and related environmental and economic performance, while taking into account an important contingent factor: the initial state of technology. The study's findings show that eco‐efficiency was generally not obvious among the companies during the first two trading periods. It furthermore indicates that GHG emissions were generally not reduced cost‐effectively, as companies' intrinsic values were more likely to have influenced carbon reduction related decisions to a greater degree than the economic incentives resulting from the market mechanisms of the ETS. The results not only shed light on firm behavior with regard to technology management but also provide insights for policy makers into how to stimulate more cost‐effective environmental investments. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment