Product Eco-innovation Research Articles

Eco-innovation and (green) employment: A task-based approach to measuring the composition of work in firms

This paper examines how different types of eco-innovation activities affect firms’ employment patterns. Using a linked employer–employee administrative dataset for the Netherlands we take an individual level task-based approach to differentiate between green and non-green jobs within firms. Our results show that while eco-innovation does not impact overall employment, eco-product innovation does lead to a 19.72% increase in green jobs. The growth in green jobs mainly comes from a compositional shift towards a small yet significant increase in green workers and reduction in non-green workers. Further analysis suggests that firms that voluntarily undertake eco-innovation create more green jobs but also that it is subsidy-driven policies rather than stricter regulations that drives the increase in green employment.

Pengaruh Pengetahuan Hijau dan Religiusitas Terhadap Eco-Inovasi Produk Berbahan Baku Etnobotani Lokal

This study is driven by the significance of developing herbal medicine using local ethnobotanical ingredients, incorporating green knowledge and religiosity to influence the actions of individual production employees. It investigates the essential role of green knowledge and religiosity in the eco-innovation of herbal medicine from local ethnobotanical sources. Focusing on Solo Raya's herbal medicine agroindustry, the research aims to explore the interplay between green knowledge, religiosity, and product eco-innovation, particularly from the perspective of production employees. Employing a case study and explanatory approach, 100 randomly selected production employees participated, and data were analyzed using structural equation model-partial least squares (SEM-PLS). Results indicate that green knowledge and religiosity significantly contribute to promoting eco-innovation. Green knowledge facilitates the creation of environmentally friendly products with local ethnobotanical materials, while religiosity offers ethical support for sustainable innovation practices. The study underscores the pivotal role of production employees in balancing environmental sustainability and religious values, emphasizing the crucial link between these aspects for advancing eco-innovation in the herbal medicine industry. This research enriches our understanding of eco-innovation dynamics in the agro-industrial sector by embracing green values and religiosity.

Does eco-innovation stimulate employment? The case of Spanish manufacturing firms

The demand for eco-products due to the exigency of friendly and environmental production could affect the employment of the firms. This paper tests whether product and process eco-innovations boost employment in Spain differentiating by the environmental goals (material and energy efficiency and environment responsiveness), by the level of qualification of the workers, and by the dirtiness of the industries. We apply a Green Harrison model, using the Technological Innovation Panel (PITEC) for Spain from 2008 to 2016. Results show a positive relationship between all types of product eco-innovations and employment, while the influence of process eco-innovations on employment depends on the environmental goals, the level of skills, and the industry. Specifically, distinguishing by industry there is a labour-saving effect in clean industries and a labour-friendly effect for low-skilled employment in dirty industries.

The effect of intellectual capital towards sustainability of business performance mediated by eco-product innovation & external learning: The Indonesian bottled drinking water industries

This study developed and empirically corroborated a structure explicitly propositioning eco-product innovation and external learning, correspondingly bridging the link between intellectual capital and sustainability performance. The theory of dynamic capabilities and knowledge-based view proposed eco-product creation and external education as mediators that developed a new conceptual model. This study utilized the Partial Least Square-Structural Equation Modelling (PLS-SEM method) to examine one hundred sixty-two Indonesian bottled drinking industries, exposing their attentiveness to cooperate in the study. More essentially, the study unraveled new justifications by scrutinizing external learning's role as more influential than eco-product innovation. Based on the practical viewpoint, intellectual capital helped exchange knowledge and information with distributors, suppliers, and competitors. Thus, the complete assimilation and transformation of their understanding could improve business performance.

Exploring the impact of collaboration on eco-innovation in SMEs: a contribution to the business modes of innovation framework

PurposeThe purpose of the study is to investigate how small- and medium-sized enterprises (SMEs) can effectively collaborate for eco-innovation using the business modes of innovation framework to emphasise three types of collaboration: “science, technology, and innovation” (STI), “learning by doing, using, and interacting” (DUI)-Vertical and DUI-Horizontal.Design/methodology/approachThis analysis uses data from 838 SMEs in the Basque Country (2018–2020) to evaluate the effects of the three types of collaboration on eco-innovation. The authors employ a propensity score-based method to address potential bias associated with endogeneity in innovation studies.FindingsThe findings suggest that DUI-Vertical collaboration has a positive relationship with the development of product, process and marketing eco-innovation. Furthermore, DUI-horizontal collaboration is the most effective collaboration mode for SMEs, positively impacting their overall eco-innovation portfolio. Finally, STI collaboration is positively associated with product eco-innovation.Practical implicationsPolicymakers should support SMEs by designing programmes that facilitate collaboration between competing firms to stimulate eco-innovation, but potential challenges of coopetition must be addressed. Rather than a generic, one-size-fit-all approach, SMEs' managers should identify the most appropriate partners corresponding to their specific eco-innovation goal, ensuring a more effective and targeted. Collaboration between science partners and SMEs should be reinforced by approximating the SMEs' needs more effectively.Originality/valueThis study contributes twofold. Firstly, the authors investigate whether the STI and DUI modes of innovation are determinant factors in the introduction of various types of eco-innovation. Secondly, the authors contribute to the literature on business modes of innovation by differentiating between DUI-Vertical (i.e. suppliers, customers and consultancy) and DUI-Horizontal (i.e. competitors) collaboration, thus highlighting the complexity of DUI collaboration forms.

Eco-innovation Types Adoption in Mexican Small and Medium Firms

The debate on eco-innovation is a relatively recent and emerging topic in the literature, and although it is gaining interest among cientific, academic, and enterprise community, and the analysis and discussion in the context of small and medium-sized enterprises is in an embryonic stage, especially in emerging economy countries, such as Mexico. In this sense, the objective of this research is to analyze the most important eco-innovation types that affect eco-innovation adoption in manufacturing SMEs. The results obtained follow that product eco-innovation, process eco-innovation and management eco-innovation are good eco-innovation types adoption of small and medium-sized companies in the automotive industry.

External knowledge and eco-innovation: evidence from small and medium-sized enterprises

Purpose Firms are engaging in eco-innovation as a response to environmental concerns. Due to its complexity, firms are searching, absorbing and using externally acquired knowledge toward implementing eco-innovation. Thus, this study aims to examine how different external knowledge sources affect the eco-innovation of small and medium-sized enterprises (SMEs) in developing economies. Design/methodology/approach The study uses an Ordered Probit regression analysis for 318 developing economy SMEs to examine the impact of vertical flows (suppliers and customers) and horizontal flows (competitors and scientific organisations) on eco-innovations. Findings On the vertical dimension, the results show that external knowledge from suppliers is positively associated with eco-product and eco-process innovations. However, external knowledge from customers is positively associated with eco-product innovation, but not eco-process innovation. On the horizontal dimension, external knowledge from competitors contributes to eco-process innovation, but not to eco-product innovation. Finally, external knowledge from scientific organizations is positively related to eco-product and eco-process innovations. Originality/value First, the study contributes to the external knowledge literature by focusing on developing country SMEs. Second, the methodology used in this study constitutes a novelty as it provides a tool that categorizes firms according to the extent of emphasis they placed on both eco-product and eco-process innovations. Finally, it offers new evidence by revealing that the effects of external knowledge on eco-innovations are differentiated and not equally beneficial to firms.

Impact of technology-enabled product eco-innovation: Empirical evidence from the Chinese manufacturing industry

The advent of global environmental problems has been exacerbated by rapid industrialization; however, these challenges can be addressed through business model innovation enabled by technological advancements. While numerous academic works have investigated the results of technology-enabled business model innovations in a variety of environmental sustainability contexts, the application of technological improvements to product eco-innovation (PEI) has received comparatively less scrutiny. To bridge this research gap, our study aims to examine the impact of technology-enabled PEI as well as the boundary conditions. Grounded in the resource-based view, we developed a conceptual framework, which we investigated via hierarchical regression analysis using online survey data from 280 Chinese manufacturing firms. The results reveal that technology-enabled PEI has a positive impact on both economic and environmental performance. This positive impact is amplified by a high level of firm IT capability and high fiscal policy incentives. This study provides a deeper understanding of the performance ramifications of technology-enabled PEI as well as managerial insights for promoting economic and environmental sustainability in the manufacturing industry.

Determinants of eco-innovation in the agricultural machinery sector: the case of small and medium enterprises in the Piedmont region (Italy)

The agricultural machinery industry can significantly contribute to a more sustainable farming system through the development of eco-innovative products and production processes. This is particularly true for small and medium enterprises (SMEs), which represent a significant share of this market. This study investigated the determinants of attitudes towards eco-innovating products and processes in a sample of small and medium agricultural machinery manufacturers (N = 47) from the Piedmont region (North–West Italy), analysing the role of enterprise’s characteristics, perceived drivers and barriers, and environmental concern. Overall, product eco-innovation was considered important/very important for their firms by 88.3% of the respondents, whereas process eco-innovation by 67.7%. The regression analyses showed that the availability of a formal and hierarchical structure dedicated to Research and Development and of financial support were significantly associated (β = 0.301, p = .032 and β = 0.406, p = .011, respectively) to positive attitudes towards eco-innovating production processes, whereas the lack of know-how was the main obstacle to both product and process eco-innovativeness (β = − 0.564, p = .000 and β= − 0.397, p = .008, respectively). Environmental concern did not show any significant association with firms’ perceived importance to eco-innovate either products (β = 0.097, p = .475) or processes (β = 0.248, p = .087). Implications for the development of interventions aiming at fostering positive attitudes towards eco-innovation among the targeted enterprises are discussed.

Dynamic Capabilities, Environmental Management Capabilities, Stakeholder Pressure and Eco-Innovation of Chinese Manufacturing Firms: A Moderated Mediation Model

Growing social and academic concerns toward environmental sustainability are constantly driving attention toward eco-innovation as an effective solution to environmental problems. Extant studies on drivers of eco-innovation have not fully investigated the interaction mechanisms between different factors. Drawing upon the resource-based view, stakeholder theory, and environmental literature, this paper aims to explore the mechanisms of how firm capabilities and perceived stakeholder pressure interact to facilitate eco-innovation. Based on survey data collected from 169 Chinese manufacturing firms, the results of regression analysis based on bootstrap resampling method show that environmental management system (EMS) completely mediates the relationship between dynamic capabilities (including absorptive capability and reconfiguring capability) and eco-innovation (including eco-process and eco-product innovation). Furthermore, the relationship between absorptive/reconfiguring capabilities and EMS, as well as the direct and indirect relationship between absorptive capability and eco-process innovation, is contingent upon stakeholder pressure. The direct and indirect effects become stronger when managers perceive higher stakeholder pressure. This paper contributes to answering why firms undertake environmental activities beyond compliance through specifying the interaction between firm capabilities and stakeholder pressure.

An Analysis of Eco-Innovation Capabilities among Small and Medium Enterprises in Malaysia

The objective of this study is to look at how Malaysian small and medium enterprises (SMEs) are applying eco-innovation capabilities in order to sustain their business performance. Eco-innovation capabilities are represented in this study by five different types of practices, with the indication of unexpected circumstances: eco-product innovation, eco-process innovation, eco-organisational innovation, eco-marketing innovation, and eco-technology innovation. The qualitative research approach was used in the study, and the content analysis was based on in-depth interviews with six top-level managers/owners of Malaysian manufacturing SMEs. According to the data, more than half of SMEs acquired eco-innovation capabilities in order to continue their business performance and thrive in the business sector, while having to confront certain hurdles due to unforeseen situations. According to the findings, eco-innovation capabilities encourage SMEs to engage in waste management, recycling or reusing resources, research and development, sustainable goods that utilize customer requests, and the use of environment management machines. Thus, the findings of this study may aid the efforts of government agencies, policymakers, and top-tier manufacturing SMEs in building an exceptional innovation platform on which SMEs may rely for assistance and support in preserving their business performance in the future and beyond.

Attaining sustainable business performance via eco-innovation under ecological regulatory stringency and market turbulence

The study examines approaches wherein two external factors spur Ghanaian firms to eco-innovate: ecological regulatory stringency and market turbulence.The study's conceptual framework is evaluated using survey data from 513 Ghanaian manufacturing firms using a hybrid Partial Least Square-Structural Equation Model and Arttificial Neural Network technique, which provides support to the proposed hypothesis. Thus, by dividing eco-innovation into product eco-innovation and process eco-innovation, we infer that ecological regulation stringency improves sustainable business performance primarily through process eco-innovation instead of product eco-innovation and market turbulence has a greater impact on sustainable business performance through product eco-innovation as opposed to process eco-innovation.Our research adds to the literature on eco-innovation and green economy by providing a comprehensive framework for measuring a firm's pursuit of eco-innovation and sustainability in response to government and market pressures. We conclude by providing theoretical, methodological and practical implications.

The impact of ecological innovation on the food production quality: mediating role of environmental awareness

Eco-innovation is the necessary element for the production process and quality and the organization’s success that needs researchers’ and policymakers’ emphasis. Hence, the current article investigates the impact of product eco-innovation, process eco-innovation, and organizational eco-innovation on the food production quality in the food industry in China. The present study also investigates the mediating impact of environmental awareness among the association of product eco-innovation, process eco-innovation, organizational eco-innovation, and quality of food production in the food industry in China. The article followed the survey questionnaires to gather the primary data. The study used the PLS-SEM to check the relationships among the constructs using SPSS-AMOS. The findings indicated that product eco-innovation, process eco-innovation, and organizational eco-innovation have a positive association with food production quality in the food industry in China. The outcomes also revealed that environmental awareness significantly mediates among product eco-innovation, process eco-innovation, organizational eco-innovation, and food production quality in the food industry in China. This study guides the policymakers in developing policies related to food production quality using eco-innovation and environmental awareness in the complete business process.

The impact of eco-innovation, ecotourism policy and social media on sustainable tourism development: evidence from the tourism sector of Indonesia

Tourism growth is a significant factor in the economic development around the globe, and eco-innovation and tourism policies could improve the tourism development and needs the researchers’ attention. Thus, the present article investigates the impact of eco-product innovation, eco-process innovation, eco-organizational innovation, eco-tourism policies, and social media on sustainable tourism development in Indonesia. This article has used primary data collection methods like questionnaires to collect the data from the selected respondents. The research also applied the smart-PLS to check the association among variables and test the hypotheses. The results revealed that eco-product innovation, eco-process innovation, eco-organizational innovation, eco-tourism policies, and social media have a positive nexus with sustainable tourism growth in Indonesia. This shows that through social media, the tourism firms keep in contact with the stakeholders, can have information, and share their own ideas with them. In this way, they can keep their tourism practice innovative and according to the requirements of stakeholders. This article guides the regulators to develop effective policies that improve sustainable tourism growth using eco-innovation and eco-tourism policies.

Are certified firms more prone to eco-product innovation? The moderating role of slack resources

Sustainability is becoming essential for virtually every organization willing to thrive in a globalized world. Nonetheless, the available resources to address the challenges required to switch towards sustainability-oriented firms are scarce and yet necessary to deploy. Thus, this study focuses on the adoption of ISO 9000, ISO 14000 and OHSAS 18001 families of standards as managerial practices that can help firms in promoting eco-product innovation, considering slack resources as a moderator of this relationship. Relying on a sample composed of 2834 firms studied between years 2007 and 2020 and obtained from the Refinitiv® Eikon database, results suggest that firms holding these certifications are more prone to eco-product innovation. More specifically, ISO 14000 acts as the main driver, although its benefits are boosted when implemented in combination with ISO 9000 and/or OHSAS 18001. In fact, firms adopting multiple certifications increasingly use their slack resources to leverage eco-product innovation when firms hold at least intermediate levels of slack. All in all, this is one of the first studies, to the best of the authors’ knowledge, analyzing simultaneously the different combinations of these certifications as potential drivers of eco-product innovation, as well as the moderating role of slack resources.

Linking external collaborations, eco-innovation and sustainable growth. An empirical analysis on the Italian manufacturing firms

ABSTRACT This paper analyses the relationships between eco-innovation and business performance by exploring the role of external collaborations as a potential factor explaining the persisting heterogeneity of economic effects of eco-innovation. Basing on a large survey of 3,000 Italian manufacturing firms, the study investigates to what extent collaborations with supply chain and quadruple helix actors, including public institutions, universities and civil society, contribute in sustaining firm’s growth by improving the effectiveness of different types of eco-innovations. We find that the relationship between eco-innovation and business performance is moderated by both supply-chain and quadruple helix collaborations. However, external collaborations with actors of the quadruple helix show a pronounced heterogeneity. While process eco-innovation may in particular benefit from establishing collaborations with public institutions, product eco-innovation relies more on interactions with civil society suggesting that market-driven factors still exert a main role in influencing the market success of this type of eco-innovation.

Eco-Innovation and Firm Performance: Evidence from South America

Eco-innovation has received a great deal of attention in academia and the business sector because it promotes a firm’s sustainable development and seeks to improve its performance. The prime objective of this study was to analyze the effect of the process, organization, and product eco-innovation on the company’s financial and environmental performance. Using a structural equation model estimated by maximum likelihood and a sample from 214 South American manufacturing companies in Colombia, Ecuador, and Perú, we found that organizational eco-innovation (OE) and process eco-innovation (PCE) are positively and significantly associated with the firm’s environmental and financial performance. In contrast, product eco-innovation (PDE) is not significantly associated with the two types of performance described. Likewise, OE has a significant and positive indirect influence on PDE, environmental performance, and financial performance. These findings suggest that OE and PCE positively affect the firm’s performance. On the contrary, PDE does not have this effect, extending the discussion that eco-innovation is specific to the context of the study.

Does executives’ ecological embeddedness predict corporate eco-innovation? Empirical evidence from China

ABSTRACT Eco-innovation is the most promising way for enterprises to achieve green growth, and its adoption depends largely on executives’ choices. Therefore, this study investigates how executives’ ecological embeddedness affects the three dimensions of corporate eco-innovation by impacting two forms of executives’ environmental awareness. Eco-innovation includes eco-management innovation (EMI), eco-process innovation (EPsI), and eco-product innovation (EPtI). Environmental awareness consists of environmental risk awareness (ERA) and environmental cost–benefit awareness (ECA). Furthermore, this study examines the interrelationships between the two forms of environmental awareness and among the three dimensions of eco-innovation. Data collected from 192 Chinese manufacturing firms were used to test the hypotheses. The results support most of the proposed hypotheses with some exceptions, such as ECA positively affecting EPtI only as a partial mediator between ecological embeddedness and EPtI. Our findings contribute to understanding the antecedents of eco-innovation and complement research on executives’ social embeddedness.

Environmental Additionality: The Effect of Innovation Support on Firms’ Eco-Innovation Strategies

This paper examines the effect of generic innovation policy on eco-innovation rather than generic innovation. Hence in doing so, the paper analyses the existence of environmental additionality of generic innovation policy. The empirical analysis applies propensity score matching to account for endogeneity and unobserved firm heterogeneity, using Spanish firm level data during 2008-2016. We find that in the short term, regional policy is effective in stimulating eco-process innovation, and in complementing national policy in fostering eco-product innovation. Conversely, national policy is effective in increasing eco-product innovation. Both are similarly effective in incentivising the reduction of environmental impact in dirty industries.

Eco-Innovation Capabilities and Sustainable Business Performance during the COVID-19 Pandemic

The COVID-19 pandemic has had a direct impact on the manufacturing industry in Malaysia because all economic activities had to be suspended for some time. This study explores the role that eco-innovation capabilities might play in improving sustainable business performance during the ongoing pandemic. This study employs a quantitative method by distributing online questionnaires to 80 small and medium enterprises (SMEs) in Klang Valley, Malaysia. In the study, the relationship between sustainable business performance and the three variables of eco-innovation capabilities, i.e., eco-product innovation, eco-management innovation and eco-logistic innovation, were determined using multiple regression analysis. The results indicate that two hypotheses are accepted and the other one is rejected. The findings indicate that most manufacturing SMEs in Klang Valley have adopted eco-management innovation and eco-logistic innovation as crucial capabilities for their businesses during the pandemic. However, due to the challenges faced by these SMEs during the pandemic, eco-product innovation was found to have an insignificant relationship with sustainable business performance. It is insignificant because of the low productivity rate observed during the pandemic. Hence, the COVID-19 pandemic has caused manufacturing SMEs in the Klang Valley to not be able to maintain their operations and stay on track. Therefore, this research may contribute to the efforts of policymakers, government agencies and managers of manufacturing SMEs in developing a strong innovation platform on which manufacturing SMEs may rely for support in enhancing their business capacity and performance.