Environmental Product Innovation Research Articles

한국 제조기업의 환경기술 혁신이 고용에 미치는 효과 분석

In this study, we empirically analyze the effect of environmental technology innovation on firms' employment. Using the data on manufacturing sector from the 2016 and the 2018 Korea Innovation Survey, we analyze whether employment growth is different for firms engaged in environmental technology innovation and non-environmental technology innovation. The estimation results suggest that both environmental and non-environmental product innovation have positive effects on employment. Moreover, the employment effect of environmental product innovation is not significantly smaller than that of non-environmental product innovation. In contrast to product innovation, non-environmental process innovation has no employment effect, while environmental process innovation increases employment. The decomposition of total employment growth shows that, despite the positive employment effects of environmental technology innovation, its contribution to total employment growth is small.

Green intellectual capital and green competitive advantage in hotels: The role of environmental product innovation and green transformational leadership

The environmental problems brought about by the rapid development of the hospitality industry can no longer be ignored, and the green transformation of the hospitality industry is imminent. This study aims to investigate the role of the mediating effect of environmental product innovation and the moderating effect of green transformational leadership on the relationship between green intellectual capital (GIC) and green competitive advantage. A questionnaire survey of 400 Spanish hotel employees was conducted, and empirical analysis was carried out using SPSS 27.0 and AMOS 28.0. The results show that GIC makes a positive contribution to green competitive advantage in hotels. The mediating role of environmental product innovation and the moderating role of green transformational leadership were also statistically significant. We contribute to the development of the resource-based view theory through hypothesis testing and explores ideas for green transformation in hotel companies.

Corporate environmental performance and efficiency: Evidence from stochastic frontier analysis

This study provides novel insights into the relationship between corporate environmental performance (CEP) and corporate economic performance as measured by technical efficiency. Using stochastic frontier analysis (SFA) methodology, we find a positive link between CEP and technical efficiency for a sample of U.S. listed firms (from industries that typically raise environmental concerns) in the period 2005–2019. This association is stable over time. Additional tests suggest that such association is non-linear (convex), with high-rated firms presenting disproportionally stronger gains in terms of technical efficiency relative to others. In a different vein, we also show that the strength of the association varies across business sectors, a firm’s size and (historical average) profit margin. The impact of CEP is akin to the ability of firms to cut emissions and/or curb resource use and waste. Surprisingly, environmental product innovation appears to produce negligible effects on technical efficiency.

Environmental Product Innovation and Brand’s Perceived Value: The Mediating Role of Ethical Aspects

Environmental Product Innovation and Brand’s Perceived Value: The Mediating Role of Ethical Aspects

Environmental Product Innovation and Perceived Brand Value: The Mediating Role of Ethical-Related Aspects

Studies developed in the last two decades indicate that environmental product innovations can potentially generate competitive advantages. However, the ethical dimension, now increasingly involved in evaluations for consumer decision-making, has received less attention in academic research. Considering the above, our study investigates the mediating role of ethical aspects in the relationship between environmental product innovation and perceived brand value. To this end, we carried out a quantitative study with 336 university students who are end users of Apple and Microsoft products and services. In addition to investigating the main effect of environmental product innovations on perceived brand equity, we explore the possible mediating effects of ethical behaviors: (i) open-mindedness and (ii) concerns with privacy practices. Our results indicate that environmental product innovations need to be supported by the ethical aspects of companies to have a positive effect on perceived brand equity. Crucially, customers perceive value in environmental product innovation when they can confirm that organizations exhibit ethical correctness, particularly in the sector under study. We understand that our research provides advancement in the field of sustainable innovation. The study confirms that broader approaches, mainly centered on corporate commitments beyond environmental issues, are critical for environmental product innovations to generate perceived brand value.

Relationship between environmental innovation and sustainable outcomes – empirical evidence from Poland

Purpose: The article refers to a valid and current research area related to business sustainability. The main objective of this article is to identify the relationship between different types of environmental innovations and sustainable outcomes. Design/methodology/approach: For the needs of this article, the researches were conducted in 293 companies operating in Poland. In the course of the research, an additional division of environmental innovations derived from the Oslo Manual classification was taken into account, and the following were distinguished: environmental process innovations, environmental product innovations, environmental organizational innovations, and environmental marketing innovations. In addition, for the analysis of sustainable business performance, it was divided into economic, environmental, and social performance. The relation between the level of types of innovation and organizational outcomes is examined for each of these categories, and three models are presented. Findings: Empirical research confirmed that different types of environmental innovations are essential factors for sustainable outcomes and, as a result, their growth. Research also revealed differences and similarities between different sustainable outcomes and their relationship to innovations of different types. Research limitations/implications: First, although outcomes were measured using subjective indicators consisting of a limited number of items, using objective indicators or collecting data through in-depth interviews would have provided more detailed data. Second, increasing the size of the research sample and expanding the research to include companies operating in other countries (replication of research) would allow for generalization of the results, as the results obtained may be specific to companies operating in Poland. Originality/value: The main value of this article is a broad and holistic view, which made it possible to use the four types of environmental innovations and link them in the model to organizational outcomes and clarify the relationship between them. It seems crucial to take a systemic view of what innovations collectively build the model and to note that organizational innovation appears as an element present in each of the models obtained. Thus, it is an indication that organizational activities should support process, marketing, or product innovations to lead to sustainable results of environmental innovation implementation. Keywords: business sustainability, environmental innovations, sustainable outcomes, management. Category of the paper: Research paper.

On the relationship between corporate CO2 offsetting and pro-environmental activities in small- and medium-sized firms in Germany

Voluntary CO2 offsetting by individuals, firms, and organizations is increasingly considered as a direction of climate policy that is complementary to traditional approaches such as subsidies or CO2 taxes. Based on data from a large-scale survey among corporate decision makers, this paper empirically examines corporate CO2 offsetting and its determinants in small- and medium-sized firms in Germany. Our descriptive statistics show both a rather limited engagement in corporate CO2 offsetting as well as a strong lack of knowledge about its mechanism. The econometric analysis reveals that some firm-specific characteristics like the average age of the employees, firm size, and firm age matter for CO2 offsetting. However, the main estimation results refer to the relevance of general environment-related variables like the implementation of environmental product and service innovations or the share of employees that carry out environment-related tasks and especially of climate-related factors and activities. In particular, the implementation of climate targets and the participation in the EU Emissions Trading System (EU ETS) are strongly significantly positively correlated with CO2 offsetting. In line with similar findings at the individual level, these estimation results imply that also corporate CO2 offsetting does not substitute or crowd out other climate protection and further pro-environmental activities, but rather complements them.

Environmental commitment and innovation as catalysts for export performance in family firms

Recognizing the extent of inconclusive findings in the environmental commitment – export performance nexus, this study examines this link in order to reduce theoretical ambiguity. The paper focuses on family firms in Poland and assesses the distinct rate of export intensity resulting from strategic commitment to environmental issues, through product innovation and process innovation. Analyzing a sample of 409 firms sourced from the World Bank Enterprise Survey database, the results indicate that strategic commitment to environmental issues encourages process innovation but not product innovation. In turn, process innovation increases export intensity while product innovation does not. It is also found that quality certifications interact with the relationship between strategic commitment to environmental issues and product innovation. These findings pose important theoretical implications and offer insights to stakeholders particularly interested in the sustainable practices of family firms.

Does Green Public Procurement Trigger Environmental Innovation?

This paper provides first empirical insights on the relationship between green public procurement and firms’ environmental innovation outputs. Considering that the public sector is a large buyer in the economy, strategic public procurement can work as demand-pull factor for new products and processes. Green public procurement aims at contributing to more sustainable production and consumption. Using a novel firm-level dataset, this paper analyses within a difference-in-differences setup whether green public procurement is able to trigger environmental innovations or not. Our results support a demand-pull effect of green public procurement on the probability of introducing environmental product innovations: The probability of introducing a new and more environmentally friendly product is on average around 19 percentage points higher for firms receiving a green public procurement contract. We find no significant relationship between green public procurement and the probability of introducing new and more environmentally friendly production processes.

Toward environmental innovation in the cement industry: A multiple-case study of incumbents and new entrants

In this study, we explore the drivers of and barriers to environmental innovation for new entrants and incumbents in the cement industry. The cement industry produces large amounts of carbon dioxide (CO2) emissions every year, and therefore, implementing environmental innovations in the industry is important. The study was conducted as a multiple-case study of seven companies; four are new entrants, and three are incumbents in the cement industry. We found that incumbents implement environmental process innovations, as these firms are driven by cost-efficiency incentives to serve price-sensitive customers that prioritize standard products with competitive prices. Incumbents’ efforts in environmental product innovations are hindered by economic feasibility and constraints of production facilities especially when compared to ordinary Portland cement (OPC) production. In turn, new entrants implement environmental product innovations, as these firms are driven by internal values and a mission involving environmentally friendly products. To attain better environmental performance, new entrants create environmental product innovations for niche markets and applications. New policies that stimulate customer demand for new entrants and incumbents could accelerate the change to lower emissions in cement production.

Firm Growth as a Driver of Sustainable Product Innovation: Mediation and Moderation Analysis. Evidence from Manufacturing Firms.

Facing worldwide environmental and social concerns, manufacturing firms are trying to adopt effective environmentally friendly actions to mitigate their environmental impacts. Although the existent literature has provided many insights about the drivers of sustainable product innovation, little is known about the impact of firm growth. Thus, we intend to contribute to this gap in the literature by examining the impact that firm growth can have on sustainable product innovation. To achieve this goal, the partial least square (PLS) modeling technique was used to analyze a dataset of 3250 manufacturing firms from 39 different countries. The results reveal that firm growth exerts a positive effect on sustainable product innovation and that the relationship is partially mediated by the adoption of environmental practices. The findings also indicate that managerial barriers lessen the effectiveness of the adoption of environmental practices in facilitating the development of sustainable product innovation, while improving labor conditions increases it. However, operational barriers do not exert a significant moderating effect between the adoption of environmental practices and sustainable product innovation. These results prompt interesting insights related to theory development in environmental management and sustainable product innovation research.

Environmental Innovation, Open Innovation Dynamics and Competitive Advantage of Medium and Large-Sized Firms

The present research investigates the contribution of environmental innovation to firms’ competitive advantage through the case of medium and large-sized firms operating in Greece. Due to the growing trend of environmental innovation in Greece and a consequent increase in the research interest, this paper fills the existing gap in the relevant literature as there is not enough evidence concerning Greek firms’ environmental innovation practices. To meet the research goal, a questionnaire was distributed to 892 medium and large-sized firms operating in Greece; 225 questionnaires were finally responded. The data is based on firms’ self-assessment concerning environmental innovation and competitive advantage and are analyzed using both descriptive and inductive statistics, including principal components analysis and multiple linear regression. The research results show that the examined firms implement environmental innovation practices at a moderate level. The most common practices of environmental innovation are the implementation of ISO 14001 management systems and the toxic substances usage reduction. The percentage of ISO 14001 implementation is increased compared to the previous years. Furthermore, the regression analysis revealed that the components concerning environmental process innovation and environmental product innovation have a positive impact on the examined firms’ competitive capability. The relationship between open innovation and environmental innovation and the contribution of open innovation dynamics are discussed as well.

Diffusion of environmental innovations: Sector differences and explanation range of factors

Empirical research on the diffusion of environmental product and service innovations has significant limits: almost all investigations focus on just a single sector or technology, usually energy, and concern a small number of diffusion cases. Therefore, it is hardly possible to generalize across sectors and to identify potential differences between sectors. We address this research gap with an investigation of a large sample of 130 diffusion cases from 11 different sectors. We apply a new mixed-method approach of statistical analysis and qualitative extreme case analysis. We provide insights on the differences in dissemination rates and knowledge on sector-specific factors. This helps to explain diffusion processes and design effective sector-specific transition policies. The concept of explanation range of factors clarifies the role and relevance of different diffusion factors and opens up avenues for further research on environmental innovation. Based on our findings, it can be concluded that some factors explain diffusion in (almost) all cases (high explanatory range), some only in specific sectors (medium explanatory range), and some merely in individual cases (low explanatory range).

Environmental management and product innovation: The moderating role of the dynamic capability of small manufacturing firms

Given the overwhelming concerns on environmental issues, our study attempts to investigate the important role of environmental management practice in the context of product exploration and product exploitation. Additionally, we examine the moderating effect of transformative capability and absorptive capability on the relationship between environmental management and product exploration and exploitation. Based on a survey of 106 managerial-level employees from small manufacturing firms in the United Kingdom (UK), this study found that environmental management practice has a positive direct effect on product exploitation and product exploration. The study also found that (1) transformative capability positively influences the relationship between environmental management and product exploration; (2) absorptive capability negatively influences the relationship between environmental management and product exploitation. From this study, we offer novel insights that extends the existing literature concerning the outcomes of environmental management within the context of product exploration and product exploitation.

Can environmental innovation benefit from outward foreign direct investment to developed countries? Evidence from Chinese manufacturing enterprises.

Environmental innovation is an important way to low-carbon economic growth. Outward foreign direct investment (OFDI) can produce reverse technology transfer to promote innovation. This study aims to examine whether OFDI to developed countries can transfer reverse green technology and promote the environmental innovation of manufacturing enterprises in emerging economies (EEs). Based on the technology gap theory, resource bricolage theory, resource-based view, and Potter hypothesis, this study constructs a conceptual model including the direct effect of OFDI on environmental innovation and the moderating effects of the knowledge level of the host country, multinational strategy, absorptive capacity, and environmental regulation. To verify the model, we also use a panel dataset of 424 Chinese manufacturing enterprises during 2010-2017, and the results indicate that OFDI to developed countries can produce reverse green technology transfer and promote parent companies' environmental innovation. The knowledge level of the host country and multinational strategy can further improve the impacts on environmental product innovation. However, absorptive capacity and environmental regulation in EEs do not play a significant moderating role. Consequently, this study expands the application scope of existing theories and enriches the theoretical basis of the relationship between OFDI and environmental innovation.

ANALYSIS OF MARKETING PERFORMANCE OF THE PRODUCT PROGRAM OF INDEPENDENCE DEVELOPMENT IN CLASS IIA WOMEN'S PRIVATE VOCATIONAL SCHOOL, BANDUNG

The program of skill development and job training and production are one of the developing self-reliance that is carried out at the Lembaga Pemasyarakatan. This activity not only aims to develop the potential, talents and interest that the prisoners have, it also becomes a source of income for the prisoner during their criminal period. Prisoners who carry out this program are entitled to get premi as wages from the sale of the product. Therefore the higher the sales value, the more income will be obtained. In increasing sales, it is also necessary to do the right marketing strategy in order to increase consumer interest in providing products. Marketing performance is determined by environmental factors, product innovation, and marketing strategy creativity. This research focuses on looking at the implementation of skills development, analysis of environmental factors and the level of marketing performance in the Lapas Perempuan Kelas IIA Bandung. Data analysis techniques were carried out by descriptive method with a qualitative approach. The conclusion of this study is that there are still many constraints on environmental factors in Lapas Perempuan Class IIA Bandung that making other factors, namely product innovation, marketing strategy creativity and marketing performance hampered.

An open-minded strategy towards eco-innovation: A key to sustainable growth in a global enterprise

This study examines the extent to which business performance in global enterprises can be influenced by three key factors in the current dynamic, socio-economic context. These are: (1) an open organisational culture derived from an open-mindedness attitude, (2) an organisation's investments in innovation in environmentally friendly and health-conscious products and services, and (3) customers' perception of risk of information security and privacy concerns derived from their engagement with the organisation and its products and services. Taking Apple as the basis for our study, an empirical investigation of 161 of its customers from a variety of socio-economic and cultural backgrounds, our results indicate that a culture of open mindedness relates, indirectly and though environmental product innovation, to the way the firm addresses the privacy concerns of end users. This, in turn, helps addressing the privacy concerns of the customer base and, simultaneously improves firms' performance, offering a mix-blended source of strategic advantage. Based on a leading innovation company in the U.S. and globally, and one of the most important names in the technology industry, lessons can be learned from our study both for further theoretical developments and for management practice in a variety of knowledge-intensive, global enterprises.

Environmental management systems and environmental product innovation: The role of stakeholder engagement

AbstractEnvironmental product innovation (EPI) is an imperative for contemporary business as it enhances firm competitiveness and provides significant societal benefits. Arguments that the use of environmental management systems—such as ISO 14001—may enhance EPI have not been empirically supported. In this study, we argue that the environmental management systems–EPI relationship is contingent upon the level of a firm's engagement with three groups of stakeholders, namely, suppliers, customers, and the local community. Using a sample of 1,314 manufacturing firms for the period 2003 and 2014, we find empirical evidence that supports our hypothesis for all three groups of stakeholders. Further analysis reveals that for firms with prior experience with quality management systems, engagement with local communities becomes the critical condition. We discuss the implications of these results for both theory and practice.

The diffusion of environmental product and service innovations: Driving and inhibiting factors

About two thirds of environmental product and service innovations are consumed in small market niches. This constitutes a problem, because possible environmental benefits only occur to a limited extent. While diffusion research on environmental innovation so far has been limited to case studies with only a small number of cases or has been focused on individual sectors, the purpose of our investigation is to provide generalizable insights on driving and inhibiting factors. Based on a large sample of 130 diffusion cases, we provide cross-sector insights on key factors that are driving or hampering the diffusion of environmental innovations. We identify three clusters of factors, which form constructs at a higher level of aggregation. “Market push”, a “favourable cost-benefit ratio” and “high compatibility and confidence in the innovation” constitute meta-factors that help to explain why certain environmental innovations diffuse well (“stars”) and others remain in a small market niche (“poor dogs”).

Environmental Management Systems and Environmental Product Innovation: The Role of Stakeholder Engagement

Environmental product innovation (EPI) is an imperative for contemporary business as it enhances firm competitiveness and provides significant societal benefits. Arguments that the use of environmental management systems (EMS) — such as ISO 14001 — may enhance EPI have not been empirically supported. In this study, we argue that the EMS-EPI relationship is contingent upon the level of a firm’s engagement with various types of stakeholders, namely suppliers, customers, and the local community. Using a sample of 1,303 manufacturing firms for the period 2003-2014 we find empirical evidence that supports our hypothesis for all three types of stakeholders. Further analysis reveals that for firms with prior experience with quality management systems, engagement with local communities is the most beneficial. We discuss the implications of these results for both theory and practice.