Eco-innovation Process Research Articles

Narrowing the eco-innovation gender divide: insights for transition economies

ABSTRACT This paper aims to address the gender imbalance in eco-innovation within firms, particularly focusing on the role of top managers. Drawing on Upper Echelon Theory and Social Identity Theory, the study investigates the influence of female CEOs on the promotion of eco-innovation and examines how knowledge factors influence this relationship, especially within transition countries. Using a comprehensive cross-sectional dataset from the World Bank and EBRD (BEEPS), the research analyses over 12,000 firms operating across 28 European and Central Asian transition economies. The findings show that firms led by a female CEO are less likely to engage in eco-innovation. However, the moderating effect of knowledge can complement CEO actions, though this effect varies by macro-area. The study suggests tailored strategies, emphasising the need for knowledge-sharing networks, targeted investments in human capital, and a collaborative organizational culture. These strategies represent concrete steps to enhance management capabilities and mitigating the costs and uncertainties associated with eco-innovation process in specific socio-economic contexts

The impact of renewable energy, eco-innovation, and GDP growth on CO2 emissions: Pathways to the UK's net zero target

In May 2019, the Climate Change Committee (CCC) recommended that the UK adopt a net-zero target, aiming to reduce its greenhouse gas emissions (GHG) by 100% from the 1990s baseline by 2050. The government accepted the recommendation, and the UK became the first major economy to establish a net-zero emissions law. To progress towards its climate objectives, the government took several initiatives, such as increasing its reliance on renewable energy sources and investing in climate mitigation technologies, which are commonly referred to as process eco-innovation. This study examines the impact of eco-innovation, process eco-innovation, renewable energy consumption, and economic growth on CO2 emissions in the UK using data from 1988 to 2020. We used the ARDL bound test with an error correction model (ECM) to examine the long-run and short-run cointegration between the variables of concern. We found that eco-innovation, process eco-innovation, and renewable energy consumption have significant roles in mitigating CO2 emissions, while economic growth contributes to environmental degradation in the UK. We also found that the effect of eco-innovation on CO2 emissions abatement is stronger than that of process eco-innovation in the short and long-run. Our robustness tests have confirmed the accuracy of those findings. In addition, the results from the Toda-Yamamoto causality revealed a one-way causality from process eco-innovation to CO2, renewable energy to CO2, and eco-innovation to CO2 emissions. Further, a bidirectional causality was found between GDP and CO2 emissions. The evidence presented in this paper provides great insight for shaping the energy policy in the UK and for establishing the climate budget in line with the country's net-zero target.

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.

How eco-innovative firms were affected by and responded to the unexpected external shock of the COVID-19 pandemic

The impact of COVID-19 on different types of firm strategies, and how those firms responded to the effects of the pandemic is a subject of great interest for researchers, policymakers and firm managers. This paper studied the effects and response of eco-innovative Norwegian firms to the immediate effects of the pandemic. Given the strategy, structural, and leadership changes required for firms engaged in successful eco-innovation, such firms are assumed to possess a higher degree of dynamic capabilities that not only can mitigate the negative effects of the pandemic, but more importantly allow them to respond innovatively to those effects. Utilizing a dataset from a survey of Norwegian firms in 2020, the results of econometric modelling based on factor analysis of firm perception, showed that firms that introduced product/service eco-innovations, or process eco-innovations during COVID-19 were significantly positively affected by the pandemic compared to other firms. In addition, these firms significantly introduced more innovations in other areas of operations as a direct consequence of the pandemic. However, the results also showed that firms that introduced product/service eco-innovations were also more negatively affected by the pandemic. These results confirmed that while the higher degree of dynamic capabilities attributed to firms engaging in eco-innovations can significantly contribute to their ability to be positively affected and respond more innovatively to an unexpected external shock, it does not make them entirely immune to the negative effects.

Involving purchasing and supply management in open ecological innovation: the moderating role of digital technologies

ABSTRACT Open Eco-innovation (OEI) is an emerging approach for achieving sustainable development in manufacturing industries. However, studies on internal organisational factors and employee involvement in the development of eco-innovations are lacking. Here, we developed a model to examine whether supply management innovativeness (SMI) and environmental collaboration (EC) with suppliers affect firms’ eco-product and eco-process innovations. The proposed model was tested using data from 328 manufacturers in China. We found that SMI has a direct and positive impact on both eco-product and eco-process innovation. Mediation analysis suggests EC partially mediating this relationship. Additionally, EC had an inverted, U-shaped relationship with eco-products innovation (EPDI)and a positive effect on eco-process innovation (EPCI). While, digital technologies (DT) moderate the relationship between EC and EPDI, they do not affect EPCI. This study presents an opportunity for supply management managers to understand these challenges more comprehensively and add value to the eco-innovation process.

Delving into Stakeholders’ Perceptions of the Efficient Transition to the Circular Economy

The importance of knowledge management in facilitating a successful transition to a circular economy through the creation of a circular business model, as a substitute for the conventional linear economic approach, has not been extensively explored. The capacity of a company to coordinate, generate, and disseminate knowledge plays a crucial role in developing environmentally friendly industries and creating new employment opportunities. This article employs a literature review methodology to establish the connection between knowledge management and the shift towards a circular economy. The findings reveal that a company's eco-innovation process relies heavily on strategic knowledge management. Consequently, a comprehensive understanding of the system and self-motivated creativity are crucial components of expertise in creating sustainable circular business models. Hence, companies must consistently enhance their knowledge base to improve business processes, eco-efficiency, and eco-innovation.

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.

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.

Challenges of demographic changes and digitalization on eco-innovation and the circular economy: Qualitative insights from companies

The overuse of natural resources through excessive consumptions has led to environmental problems. As a result, there have been calls for a more sustainable, circular and digital future. Research on the topics of eco-innovations and the circular economy have made significant headways toward identifying sustainable solutions, however, the influence of demographic changes and digitization remain underexplored. Therefore, the current study investigates how demographic changes and digitization effect business practices related to eco-innovations and the circular economy. Semi-structured interviews are conducted with ten companies in Slovenia that actively adopt and develop eco-innovations, and moreover employ the principles of a circular economy. These semi-structured interviews specifically explore the impact of digitalization and demographic changes on eco-innovation and how these impacts enable the development of the circular economy. Results suggest that companies are adjusting their products and services to meet changing demands from demographic trends. Relatedly, digitization has allowed them to create new products and optimize existing ones in more sustainable ways, i.e., having less harmful effects on the environment. Specifically, digitization gave them better control over the eco-innovation process, increasing transparency, control, and manageability of the technological process in a way that reduced energy consumption and lessoned the environmental impact. These results are integrated with the existing literature to identify new insights related to the adoption and implementation of eco-innovations in the circular economy.

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.

Drivers in the Eco-Innovation Road to the Circular Economy: Organiational Capabilities and Exploitative Strategies

This article contributes to the empirical literature on the drivers of eco-innovation within the context of an organizational capability and exploitative strategies towards a circular economy. It explores the dynamics of the determinants of eco-innovation. The aim of this study is to contribute to this debate by analyzing evidence regarding the different factors influencing organizational capabilities in “transformative innovation” to support transition while eliminating obstacles to sustainability. The practical contribution of this paper is a consolidated, complete framework of eco-innovation that provides substantial insights to practitioners and facilitates the spread of eco-innovative practices. This study will benefit policy makers, key institutions, and firms to leverage the organizational capability with the effective implementation of eco-innovation processes towards a circular economy, where structural changes and transformative eco-innovation are the main determinants. However, the exploration of eco-innovation dynamics within a circular economy is still widely disregarded, especially concerning the trends and dynamics in policy-making processes and strategy development. The research employed the multi-criteria SAW method. The purpose of the suggested methodology is to establish the criteria for ranking the drivers of eco-innovation adoption. Research findings indicate the nexus between the drivers in eco-innovation and social behavior, eco-design, infrastructural changes, and political approaches. This study provides a comprehensive framework for understanding the drivers of eco-innovation towards a circular economy with regard to organizational capabilities and exploitative strategies.

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.

Sustainable forest management: analysis of eco-innovation process in Amazon

Evaluation of eco-innovation practices in companies has been widely studied, however, there is a gap in the literature on the adoption of eco-innovative practices in companies located in the Amazon/Brazil. Therefore, the objective of this research is to analyze the eco-innovation process in an industry located in the Amazon related to sustainable forest management. The purpose of the research was to conduct an exploratory case study (in-depth case) in a logging company located in the Amazon/Brazil. The relevance of the study lies in the process of making the eco-innovations developed by the company clearer and being able to compare them with the existing literature through a form that allows the evaluation of eco-innovative activities within an organization.

Do Visionary-Feedback Seeking CEOs Enhance Firm Sustainability Through Eco-Innovation? A Moderated Mediation Model.

Based on upper echelons, paradox, and social capital theory, this study extends the association of CEO vision articulation and feedback-seeking behavior with firm sustainability by identifying the mediating role of eco-innovation and top management team (TMT) boundary-spanning behavior as a moderator. By analyzing the data of mid-sized to large Chinese firms using hierarchical regression and bootstrapping-based moderated path analysis, we found that product and process eco-innovation mediates the link between CEO vision articulation and firm sustainability while CEO feedback-seeking behavior enhances firm’s sustainability through product eco-innovation only. Finally, conditional indirect effects show the vital role of TMT boundary-spanning behavior in facilitating CEOs to improve the firm’s long-term sustainability through eco-innovation.

Eco-innovation in the upstream supply chain: re-thinking the involvement of purchasing managers

PurposeIn a context of ecological transition, this study aims to explore and understand what fosters the participation of purchasing departments and identify the drivers and difficulties encountered during the development of eco-innovation within firms.Design/methodology/approachThe authors adopt a qualitative methodology that provides tools to study complex phenomena. In-depth interviews with highly knowledgeable respondents from multi-sectoral organisations enable us to explore the eco-innovation process within firms.FindingsFrom the perspectives of resource-based theory and stakeholder theory, the study contributes to the literature by investigating firms’ internal resources and exploring further dimensions based on sustainable supply chain management and purchasing. Internal stakeholders (e.g. purchasing agents) and external stakeholders (e.g. suppliers) were identified with regard to the business eco-innovation activities of focal companies in relation to upstream stakeholders. The authors examine this complex phenomenon by raising certain intra- and inter-organisational factors, as well as more individual aspects, such as the sensitivity of the purchasing manager to ecological transition. Purchasing agents are involved in increasing the propensity of organisations to eco-innovate and, as internal stakeholders, appear to be influential in eco-innovation.Research limitations/implicationsGiven the nascent state of eco-innovation practice and accessibility to primary data about ongoing efforts, this research could not consider all possible drivers.Practical implicationsThis study presents an opportunity for purchasing managers to understand challenges more comprehensively to add value within the eco-innovation process. The results highlight recommendations for how best to undertake eco-innovation in upstream supply chains.Originality/valueThe study provides new insights into the constituent resources needed for purchasing participation during eco-innovation to achieve sustainable competitive advantage. This paper is an initial attempt at research in the area.

Чистые технологии в ангаро-енисейском макрорегионе

Purpose of the article. The main hopes in solving the most acute environmental problems (including resource ones) are pinned today on technological breakthroughs. In recent years, developed countries have reoriented their development towards the implementation of a strategy of environmentally oriented growth, one of the main components of which is «clean technologies». The development of environmental technologies in Russia has great prospects if the plans are implemented, especially given the Russian potential in the development of macro technologies (nuclear power, power equipment, communications, etc.), laser, nano-, biotechnologies, etc. Investments in environmental innovations are growing, including on the part of the Russian business, «development institutions» of the innovative economy are being created. Materials and methods. The article considers the Angara-Yenisei macroregion in more detail, including innovative projects being developed on its territory, as well as the most promising areas for the development of «clean technologies» that contribute to improving the environmental situation in the region. Results. Among the most promising areas for the development of «clean technologies» in the Angara-Yenisei macroregion, contributing to the improvement of the environmental situation in the region, are the following: restoration of the activities of environmental authorities: the federal Environmental Fund and environmental funds of the subjects of the Russian Federation; development of scientific and innovative infrastructure of the macroregion; improvement of the mechanism of payments for negative impact on the environment environment; implementation of the practice of financial stimulation of the eco-innovation process; accelerated depreciation of fixed assets of «green» purpose; development of «green» financing instruments; development of highly competitive areas with the use of clean technologies. Conclusion. It is necessary not only to focus on reducing the dependence of the macroregion on the resource economy, but also to promote the development of highly competitive areas with the use of clean technologies.

Technological and non-technological trends in fashion eco-innovations

PurposeThe fashion industry is diverse and demands a high amount of resources and labor for its operation. It has powerful tools that can positively impact the environment and society as a whole. In this sense, it becomes necessary for fashion to adopt sustainable strategies quickly. One way would be the adoption of eco-innovations by companies in the sector. The objective of this research is to identify the main eco-innovation initiatives carried out by companies in the fashion sector and to verify what the trend is in the sector in relation to the types of eco-innovation, whether technological or non-technological in nature.Design/methodology/approachTo meet the objective, the sector’s sustainability reports are analyzed based on the Global Reporting Initiative (GRI) initiative. The method used to treat the data is content analysis. The authors chose to use the GRI-G4 and GRI-Standards versions of the GRI structure, as they include topics relevant to its stakeholders. The analysis based on these criteria considers 18 reports prepared by four companies (Cia Hering, Grupo Malwee, Dudalina and Lojas Renner).FindingsFrom the data analysis, it was noticed that eco-innovations of technological trends prevail in Brazilian fashion, in the first place, those of process (24.56%), followed by eco-innovations of product (10.53%). The pressure exerted by internal or external stakeholders will be fueled by the current scenario of sustainable development, positively influencing the adoption of eco-innovation. This characteristic can be attributed to the fashion sector, since technological eco-innovations overlap with non-technological ones in all the years that make up the analysis.Research limitations/implicationsAs limitations of this research, it is worth mentioning the availability of GRIs in the fashion sector. Even considering it a step forward, noting that larger companies support the adoption of these reports, it is important to highlight that only four companies make up the available database (Cia Hering, Lojas Renner, Dudalina and Malwee). From the adoption of the dissemination of sustainability reports by other organizations, the base could be expanded.Practical implicationsFrom this study, practical questions emerge that can contribute to managers and companies in the Brazilian fashion sector. Initially, the focus on eco-innovations is predominantly related to the technological component, with an emphasis on process eco-innovations. In this sense, business actions seek to resolve the accusations normally attributed to the sector, such as the adoption of unsustainable practices. For example, in cotton production, firms use large amounts of pesticides and water, despite the sector being accused of not taking proper responsibility regarding sustainability related issues.Social implicationsInvestment in eco-innovations indicates a positive attitude and change resulting from pressure and the need to return the market to society’s demands for more sustainable production technologies with less environmental impact.Originality/valueThe originality of the study lies in the systematization of a GRI analysis model applied to measure eco-innovations in fashion. Through the applied methodology, it is possible to emphasize that eco-innovations of technological trend prevail in the industry, first in processes and then in product development.

Environmental risks of innovations in the management of motor transport systems

In modern conditions, when the negative impact on the components of the environ-ment is constantly increasing, and global environmental problems are becoming more and more urgent, the issues of attracting environmental investments in energy and resource-intensive sectors of the economy are becoming more and more urgent. Among all the sources of destructive influence, one of the least studied are motor transport systems, which are a combination of highway and flow of motorvehicles that move along it. In the current conditions of the modern development of the state road network and the implementation of the "Big Construction" program, the problem of assessing the environmental risks of innovations in the management of motor transport systems becomes especially relevant and requires a solution in the context of ensuring the state's environmental safety. Goal. The goal of the work is to develop approaches to assessing the envi-ronmental risks of innovations in the management of motor transport systems to ensure an appropriate level of the state environmental safety. Methodology. The analytical methods to develop an organizational and economic mechanism for managing environmental risks of innovation in the functioning of the state's motor transport systems were used in the work. Re-sults. The main environmental problems of the functioning of motor transport systems are analyzed and priority ones are highlighted. The general foundations of environmental risk management of innovative activity are analyzed. The efficiency of the state motor transport systems management system is estimated. Measures to determine the environmental risks of innovation have been developed. The organizational and economic mechanism for managing the environmental risks of innovation in the functioning of the transport systems of Ukraine were proposed. Originality. The system of environmental risk man-agement of innovation has been further developed in the context of the eco-innovation process of develop-ment of motor transport systems, which will increase the level of environmental safety of the state. Practical value. The use of the proposed general organizational and economic mechanism for managing the environmental risks of innovation in the functioning of the state's motor transport systems will increase the efficiency of this process. The obtained result is the basis for the development and implementation of effective mechanisms for the ecoinvestment in the development of motor transport systems. In the long term, this will help to improve the state's ecoinvestment climate and indirectly increase the level of environmental safety.