Page 109 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 109
Consequences of Eco-innovation Adoption 109
petitive advantages positively affect financial performance (López-Game-
ro et al. 2010). Moreover, pioneering in innovation gives companies the
opportunity to enjoy first mover advantages (Porter and van der Linde
1995a); that is, they can ask for higher prices for green products, and, at
the same time, they improve the corporate image and have a chance to
develop new markets and to gain competitive advantages (Peattie 1992
in Chen et al. 2006; Hart 1995 in Chen et al. 2006). Nevertheless, we
should be aware that, without strict regulations and international policy
diffusion, renewable energies would not be competitive (Beise and Ren-
nings 2005).
Dealing with sustainability-related issues brings to SMEs the oppor-
tunity to realize competitive advantage in the sense of successful new
products (Klewitz et al. 2012). Investment in green innovations (Chen
et al. 2006) was helpful to the business (the more companies invested
in green innovation, the stronger was their competitive advantage). The
correlations between green product and green process innovation have
turned out to be positively associated to the firm’s competitive advantage
(Chen et al. 2006). However, green product innovation has a stronger in-
fluence on competitive advantage and new product success than green
process innovation has (Wong 2012). Therefore, when there are limited
resources, green product innovation should be pursued first (Wong 2012).
Chiou et al. (2011) found that firms, by focusing on green product,
process and managerial innovation, will gain cost savings, increase their
efficiency and productivity and have better product quality, all of which
will lead to improved competitive advantage. Indeed, many companies
worldwide have followed environmental compliance and consequently
transformed their entire business operations to become more eco-efficient
and achieve a competitive advantage over their competitors (Mourad and
Ahmed 2012). Fraj-Andrés et al. (2009) revealed that environmental mar-
keting is an excellent strategy to pursue in order to obtain competitive ad-
vantages in costs and in product differentiation.
Moreover, Hofer et al. (2012) argue that companies should note that
competitive advantages derived from environmental management ac-
tivities (environmental innovations) are likely to be short-lived because
of imitation by rival companies, but this can be avoided by protecting
the innovation (when involving intellectual property; e.g., manufactur-
ing processes, methods, and materials), which can prevent or at least slow
down the erosion of competitive advantage caused by the imitation activ-
ity of other companies. Furthermore, a study on Greek hotels found that
environmental marketing strategy leads to achievement of competitive
petitive advantages positively affect financial performance (López-Game-
ro et al. 2010). Moreover, pioneering in innovation gives companies the
opportunity to enjoy first mover advantages (Porter and van der Linde
1995a); that is, they can ask for higher prices for green products, and, at
the same time, they improve the corporate image and have a chance to
develop new markets and to gain competitive advantages (Peattie 1992
in Chen et al. 2006; Hart 1995 in Chen et al. 2006). Nevertheless, we
should be aware that, without strict regulations and international policy
diffusion, renewable energies would not be competitive (Beise and Ren-
nings 2005).
Dealing with sustainability-related issues brings to SMEs the oppor-
tunity to realize competitive advantage in the sense of successful new
products (Klewitz et al. 2012). Investment in green innovations (Chen
et al. 2006) was helpful to the business (the more companies invested
in green innovation, the stronger was their competitive advantage). The
correlations between green product and green process innovation have
turned out to be positively associated to the firm’s competitive advantage
(Chen et al. 2006). However, green product innovation has a stronger in-
fluence on competitive advantage and new product success than green
process innovation has (Wong 2012). Therefore, when there are limited
resources, green product innovation should be pursued first (Wong 2012).
Chiou et al. (2011) found that firms, by focusing on green product,
process and managerial innovation, will gain cost savings, increase their
efficiency and productivity and have better product quality, all of which
will lead to improved competitive advantage. Indeed, many companies
worldwide have followed environmental compliance and consequently
transformed their entire business operations to become more eco-efficient
and achieve a competitive advantage over their competitors (Mourad and
Ahmed 2012). Fraj-Andrés et al. (2009) revealed that environmental mar-
keting is an excellent strategy to pursue in order to obtain competitive ad-
vantages in costs and in product differentiation.
Moreover, Hofer et al. (2012) argue that companies should note that
competitive advantages derived from environmental management ac-
tivities (environmental innovations) are likely to be short-lived because
of imitation by rival companies, but this can be avoided by protecting
the innovation (when involving intellectual property; e.g., manufactur-
ing processes, methods, and materials), which can prevent or at least slow
down the erosion of competitive advantage caused by the imitation activ-
ity of other companies. Furthermore, a study on Greek hotels found that
environmental marketing strategy leads to achievement of competitive
