Page 100 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 100
In Pursuit of Eco-innovation
bility. Furthermore, the following environmental management practices
have the greatest impact on firm performance with regard to the research
of Montabon et al. (2007): recycling, waste reduction, remanufacturing,
environmental design and surveillance of the markets.
The majority of eco-innovations (80.4%) lead to lower or constant
costs, while 32% of these eco-innovations are associated with higher turn-
over; in other words, these eco-innovations are also economically success-
ful (Horbach et al. 2012). Molina-Azorin et al. (2009 in Huang and Wu
2010) reviewed 32 studies, 21 of which found a positive effect of envi-
ronmental management and/or environmental performance on financial
performance. Similar results about eco-innovation’s impact on firms’ fi-
nancial performance were found by Paraschiv et al. (2012), who found
that 35% of participant organizations have achieved encouraging results,
100 whereas another 21% have reported significant results with a strong im-
pact on the organization’s financial performance, and 10% specified that
the results of eco-innovations were insignificant. In more detail, we can
see that material savings and energy-saving products within the firm lead
to an increase in turnover, while an improvement of product recyclability
significantly reduces turnover due to its relation to the higher costs with-
in the firm (Horbach et al. 2012). The results regarding the relationship
between eco-innovation and firm performance indicate that eco-prod-
uct innovation had a relatively greater impact on firm performance than
eco-organizational and eco-process innovations had (Cheng and Shiu
2012). A year later, Cheng et al. (2013) revealed that eco-product, process
and organizational innovations directly and indirectly affect firm per-
formance (measured by return on investment, profits, market share and
sales). Lastly, Alvarez Gil et al. (2001) found a positive relationship be-
tween environmental management practices and firms’ financial perfor-
mance, indicating a positive effect on short-term financial performance.
Doran and Ryan (2012) conducted a survey from 2006 to 2008 in-
cluding 2181 Irish firms. Their research showed that eco-innovation ex-
erts a positive and significant impact on firm performance (eco-inno-
vation can drive performance growth); therefore, firms that engage in
eco-innovations have higher levels of turnover per employee (i.e., revenue
per employee) than firms that do not introduce eco-innovations. A pos-
itive relationship between green innovations and financial performance
has also been found in small firms (it is even greater when green economic
incentives exist; Clemens 2006) and in manufacturing SMEs in North-
ern China (Zeng et al. 2011). Moreover, technological innovation efficien-
cy (Cruz-Cázares et al. 2013), eco-friendly marketing strategy (Leonidou
bility. Furthermore, the following environmental management practices
have the greatest impact on firm performance with regard to the research
of Montabon et al. (2007): recycling, waste reduction, remanufacturing,
environmental design and surveillance of the markets.
The majority of eco-innovations (80.4%) lead to lower or constant
costs, while 32% of these eco-innovations are associated with higher turn-
over; in other words, these eco-innovations are also economically success-
ful (Horbach et al. 2012). Molina-Azorin et al. (2009 in Huang and Wu
2010) reviewed 32 studies, 21 of which found a positive effect of envi-
ronmental management and/or environmental performance on financial
performance. Similar results about eco-innovation’s impact on firms’ fi-
nancial performance were found by Paraschiv et al. (2012), who found
that 35% of participant organizations have achieved encouraging results,
100 whereas another 21% have reported significant results with a strong im-
pact on the organization’s financial performance, and 10% specified that
the results of eco-innovations were insignificant. In more detail, we can
see that material savings and energy-saving products within the firm lead
to an increase in turnover, while an improvement of product recyclability
significantly reduces turnover due to its relation to the higher costs with-
in the firm (Horbach et al. 2012). The results regarding the relationship
between eco-innovation and firm performance indicate that eco-prod-
uct innovation had a relatively greater impact on firm performance than
eco-organizational and eco-process innovations had (Cheng and Shiu
2012). A year later, Cheng et al. (2013) revealed that eco-product, process
and organizational innovations directly and indirectly affect firm per-
formance (measured by return on investment, profits, market share and
sales). Lastly, Alvarez Gil et al. (2001) found a positive relationship be-
tween environmental management practices and firms’ financial perfor-
mance, indicating a positive effect on short-term financial performance.
Doran and Ryan (2012) conducted a survey from 2006 to 2008 in-
cluding 2181 Irish firms. Their research showed that eco-innovation ex-
erts a positive and significant impact on firm performance (eco-inno-
vation can drive performance growth); therefore, firms that engage in
eco-innovations have higher levels of turnover per employee (i.e., revenue
per employee) than firms that do not introduce eco-innovations. A pos-
itive relationship between green innovations and financial performance
has also been found in small firms (it is even greater when green economic
incentives exist; Clemens 2006) and in manufacturing SMEs in North-
ern China (Zeng et al. 2011). Moreover, technological innovation efficien-
cy (Cruz-Cázares et al. 2013), eco-friendly marketing strategy (Leonidou
