Abstract

This study draws from the resource-based theory and investigates the interrelationships between three types of eco-innovation (process, product, organizational) and their impact on business performance. Using a structural equation design with 70 samples collected from textile industry, research results show that business performance is affected by product and organizational eco-innovations. The process and product eco-innovations significantly influence the effects of organizational eco-innovation, and there are connections between process and product eco-innovations. Research reveals that each type of eco-innovation has its own attributes, determinants, and contributions to business performance. Study on the textile sector broadens the discussion of interdependence and co-evolutionary relationships among different types of eco-innovation and demonstrates that the development of efficient innovation programs requires a holistic view and organizational and technological capabilities.

Highlights

  • IntroductionInnovation Establishes New Forms of Competition and Cooperation, and is based on changes in processes, product (goods and services) and management models

  • Innovation Establishes New Forms of Competition and Cooperation, and is based on changes in processes, product and management models

  • According to Banco do Nordeste do Brasil [BNB] (2014), textile companies are concentrated in Southeast (48.8%) and South (30.4%), and together are responsible for 79.2% of the Brazilian textile industry

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Summary

Introduction

Innovation Establishes New Forms of Competition and Cooperation, and is based on changes in processes, product (goods and services) and management models. Companies with differentiated technological capabilities have a set of valuable organizational resources that are rare and difficult to imitate (Atalay, Anafarta, & Sarvan, 2013). These resources may be heterogeneous (i.e. in larger quantities and differentiated when compared to the competition) and immobile (cannot be purchased on the market). The confluence of the discussion on innovation with the demands of a global society for sustainability derives from the concept of eco-innovation (Rennings, 2000) This type of innovation is characterized by creation of something new in order to reduce environmental impacts and influences social attitudes and cultural and institutional values (Manzini & Vezzoli, 2011; Organisation for Economic Co-operation and Development [OECD], 2009). The use of renewable energy technologies, development of pollution prevention systems, organic agriculture, creation of green investment funds and carbon emission technologies are examples of eco-innovation (Arundel & Kemp, 2009; Ekins, 2010; Kemp & Pearson, 2008; Kemp, 2009)

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