The ambiguous effects of eco-innovations: a systematic literature review

Abstract

While eco-innovations can help organisations comply with external stakeholders' expectations, they can also lead to unwanted or unexpected effects. This paper aims to explore business management literature addressing the ambiguous effects of eco-innovation. The methods used included a systematic literature review (SLR) in the Scopus and WoS databases and bibliographic techniques. By critically analysing 53 papers, the study identifies four clusters where negative or ambiguous effects of eco-innovations appear: financial, environmental, social and operational performance. The results indicate that strategic eco‐innovation had a significantly adverse impact on corporate financing, caused a decrease in employment, and created tensions for employees. Moreover, the bearing of eco-managerial innovations (eco-design) on performance was not significant. We contribute to the literature by suggesting that eco-innovation does not always generate the expected benefits. What is more, different types of eco-innovation can generate contrasting effects for the organisation and may occur at different times.