Page 103 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 103
Consequences of Eco-innovation Adoption
Table 8: Summary of the past findings and measures used to test the relationship between
eco-innovation and firm performance
Authors Measures Findings
Rao and Holt (2005), In the last two years, because of imple- The results of the study suggest that green-
International Journal of menting better management practices, ing companies’ supply chains would lead
Operations & Produc- there have been specific benefits achieved not only to the achievement of substantial
tion Management in each of the following categories (on a cost savings but also to the enhancement
four-point scale of strongly disagree, dis- of sales, market share, and exploitation
Clemens (2006), agree, agree, strongly agree). of new market opportunities (leading to
Journal of Business Re- - Increased efficiency (C) greater profit margins) – all together con-
search - Quality improvement (C) tributing to the economic performance of
- Productivity improvement (C) the company.
- Cost saving (C)
- New market opportunities (EP) 103
- Product price increase (EP)
- Profit margin (EP)
- Sales (EP)
- Market share (EP)
Respondents answered on a 5-point Likert The findings of this study indicate a posi-
scale, anchored by “much worse” and tive relationship between green and finan-
“much better”. cial performance. Therefore, small firms
- As compared to your competitors, your that perform better environmentally are
growth in earnings has been _____. also financially the most successful.
- As compared to your competitors, your
growth in revenue has been _____.
- As compared to your competitors, your
change in market share has been _____.
- As compared to your competitors, your
return on assets has been _____.
- As compared to your competitors, your
long run level of profitability has been
_____.
Montabon et al. (2007), - Return on investments Environmental management practic-
Journal of Operations - Sales growth es are positively associated with firm per-
Management - Product innovation formance.
- Process innovation
Respondents were asked what effects their The results of the study have found a sig-
environmental practices have had on: (1) nificant positive relationship between en-
market share, (2) sales growth, and (3) re- vironmental innovation strategy and firms’
turn on investment. 5-point scale (Cron- business performance.
Eiadat et al. (2008), bach’s alpha = 0.80), anchored by ‘substan-
Journal of World Business tial negative effect’ and ‘substantial positive
effect’.
- Sales growth
- Market share
- Return on investment
Table 8: Summary of the past findings and measures used to test the relationship between
eco-innovation and firm performance
Authors Measures Findings
Rao and Holt (2005), In the last two years, because of imple- The results of the study suggest that green-
International Journal of menting better management practices, ing companies’ supply chains would lead
Operations & Produc- there have been specific benefits achieved not only to the achievement of substantial
tion Management in each of the following categories (on a cost savings but also to the enhancement
four-point scale of strongly disagree, dis- of sales, market share, and exploitation
Clemens (2006), agree, agree, strongly agree). of new market opportunities (leading to
Journal of Business Re- - Increased efficiency (C) greater profit margins) – all together con-
search - Quality improvement (C) tributing to the economic performance of
- Productivity improvement (C) the company.
- Cost saving (C)
- New market opportunities (EP) 103
- Product price increase (EP)
- Profit margin (EP)
- Sales (EP)
- Market share (EP)
Respondents answered on a 5-point Likert The findings of this study indicate a posi-
scale, anchored by “much worse” and tive relationship between green and finan-
“much better”. cial performance. Therefore, small firms
- As compared to your competitors, your that perform better environmentally are
growth in earnings has been _____. also financially the most successful.
- As compared to your competitors, your
growth in revenue has been _____.
- As compared to your competitors, your
change in market share has been _____.
- As compared to your competitors, your
return on assets has been _____.
- As compared to your competitors, your
long run level of profitability has been
_____.
Montabon et al. (2007), - Return on investments Environmental management practic-
Journal of Operations - Sales growth es are positively associated with firm per-
Management - Product innovation formance.
- Process innovation
Respondents were asked what effects their The results of the study have found a sig-
environmental practices have had on: (1) nificant positive relationship between en-
market share, (2) sales growth, and (3) re- vironmental innovation strategy and firms’
turn on investment. 5-point scale (Cron- business performance.
Eiadat et al. (2008), bach’s alpha = 0.80), anchored by ‘substan-
Journal of World Business tial negative effect’ and ‘substantial positive
effect’.
- Sales growth
- Market share
- Return on investment
