Page 108 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 108
In Pursuit of Eco-innovation
Crespi 2008). Meanwhile, Costantini and Mazzanti (2012) have tested
the Porter hypothesis (the weak and the strong version), and the results of
their study revealed that environmental policies are not harmful for ex-
port competitiveness in the manufacturing sector, as well as that there is a
positive impact of specific energy tax policies and innovation effort on ex-
port flow dynamics. They conclude that environmental policies and more
incisive efforts of environmental innovation spur green exports (Costan-
tini and Mazzanti 2012). Lastly, it has been found that internationaliza-
tion modes vary from country to country; Romanian firms usually use
exports through foreign agents for selling ecological products (they are
export-oriented based on strategic alliances with foreign partners that of-
ten hold the organization for distribution of their products under foreign
brand names), while British firms aim to control the foreign distribution
108 channels and sell on foreign markets through specialized distributors
with their own brand name (Gurǎu and Ranchhod 2005). International-
ization for Romanian firms presents the main center of profits and source
of future competitive advantage gained in the domestic market, while for
British firms the goal is expansion of sales and taking advantage of the
positive eco-brand image (Gurǎu and Ranchhod 2005).
Competitive advantage
General innovation implies newness (Chetty and Stangl 2010) and is con-
sidered an important and vital source of competitive advantage and com-
panies’ productivity growth (López Rodríguez and García Rodríguez
2005; Carneiro 2007; Pla-Barber and Alegre 2007; Acs, Desai and Hes-
sels 2008; Adalikwu 2011). According to López Rodríguez and García
Rodríguez (2005), process innovation can generate competitive advan-
tages through gains in process efficiencies, while product innovation can
create a competitive advantage in customer value through greater differ-
entiation in product characteristics. Nevertheless, to exploit an innova-
tion’s benefits, companies need a sufficient degree of internationalization
(Kafourus et al. 2008; Kylläheiko et al. 2011; Ruzzier and Mlakar 2011).
Therefore, in this section, we present the consequences of proactive and
successful implementation of eco-innovations. Previous research works
have found a positive relationship between eco-innovation and com-
petitive advantage (Tien et. al 2005; Chen et al. 2006; Triebswetter and
Wackerbauer 2008; Ar 2012; Hofer et al. 2012; Wong 2012; Leonidou et
al. 2013a; Robinson and Stubberud 2013).
Investment in proactive environmental management contributes to
enhanced competitiveness of the firm; thus, cost and differentiation com-
Crespi 2008). Meanwhile, Costantini and Mazzanti (2012) have tested
the Porter hypothesis (the weak and the strong version), and the results of
their study revealed that environmental policies are not harmful for ex-
port competitiveness in the manufacturing sector, as well as that there is a
positive impact of specific energy tax policies and innovation effort on ex-
port flow dynamics. They conclude that environmental policies and more
incisive efforts of environmental innovation spur green exports (Costan-
tini and Mazzanti 2012). Lastly, it has been found that internationaliza-
tion modes vary from country to country; Romanian firms usually use
exports through foreign agents for selling ecological products (they are
export-oriented based on strategic alliances with foreign partners that of-
ten hold the organization for distribution of their products under foreign
brand names), while British firms aim to control the foreign distribution
108 channels and sell on foreign markets through specialized distributors
with their own brand name (Gurǎu and Ranchhod 2005). International-
ization for Romanian firms presents the main center of profits and source
of future competitive advantage gained in the domestic market, while for
British firms the goal is expansion of sales and taking advantage of the
positive eco-brand image (Gurǎu and Ranchhod 2005).
Competitive advantage
General innovation implies newness (Chetty and Stangl 2010) and is con-
sidered an important and vital source of competitive advantage and com-
panies’ productivity growth (López Rodríguez and García Rodríguez
2005; Carneiro 2007; Pla-Barber and Alegre 2007; Acs, Desai and Hes-
sels 2008; Adalikwu 2011). According to López Rodríguez and García
Rodríguez (2005), process innovation can generate competitive advan-
tages through gains in process efficiencies, while product innovation can
create a competitive advantage in customer value through greater differ-
entiation in product characteristics. Nevertheless, to exploit an innova-
tion’s benefits, companies need a sufficient degree of internationalization
(Kafourus et al. 2008; Kylläheiko et al. 2011; Ruzzier and Mlakar 2011).
Therefore, in this section, we present the consequences of proactive and
successful implementation of eco-innovations. Previous research works
have found a positive relationship between eco-innovation and com-
petitive advantage (Tien et. al 2005; Chen et al. 2006; Triebswetter and
Wackerbauer 2008; Ar 2012; Hofer et al. 2012; Wong 2012; Leonidou et
al. 2013a; Robinson and Stubberud 2013).
Investment in proactive environmental management contributes to
enhanced competitiveness of the firm; thus, cost and differentiation com-
