Sustainability innovations and firm competitiveness: A review

Fanny Hermundsdottir,Arild Aspelund

doi:10.1016/j.jclepro.2020.124715

Fanny Hermundsdottir, Arild Aspelund

Open Access

https://doi.org/10.1016/j.jclepro.2020.124715

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Abstract

The purpose of this article is to map out the currently available research concerning the relationship between sustainability innovations and competitiveness and to identify the contextual factors that mediate and moderate this relationship. The present study is a systematic literature review that includes 100 relevant peer-reviewed publications. We examine the studies’ methodology, industry, sustainability innovation terms, sustainability innovation variables, competitiveness variables, and findings to investigate if, and under what circumstances, there is a positive relationship between sustainability innovations and firm competitiveness. The study concludes that a vast majority of studies found positive relationships. Hence, the findings support the revisionist view that sustainability innovations can create win-win situations for a firm. However, the relationship is complex, and this study contributes with an overview of national-, market-, industry-, and firm-level factors that have a moderating or mediating effect on the relationship.

Highlights

Resource use and emissions as a result of both population and economic growth have placed an amplified burden on the environment (UN, 2019)
The present study starts with a systematic analysis of the methodology, conceptualization, and operationalization of the key terms and conclusions related to the sustainability innovationecompetitiveness relationship in each article
100 articles were reviewed with the goal of mapping the current state of the research on the relationship between sustainability innovation and competitiveness and identifying the factors that influence this relationship

Summary

Introduction

Resource use and emissions as a result of both population and economic growth have placed an amplified burden on the environment (UN, 2019). It has been found that countries and businesses are showing an increasing tendency toward sustainability (Dey et al, 2019; Eurostat, 2020), and it is argued that this is happening because sustainability is associated with higher profitability, efficiency, and competitiveness (Cherrafi et al, 2018). These inconclusive and sometimes contradictory findings suggest that the relationship is complex and that more research is needed to establish how, and under what conditions, the relationship remains positive

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