Page 117 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 117
Hypotheses Development 117
- cost savings (Shrivastava 1995; Montabon et al. 2007; Ambec
and Lanoie 2008; Horbach 2008; Lewis and Cassells 2010; Be-
lin et al. 2011; Demirel and Kesidou 2011; Horbach et al. 2012;
Klewitz et al 2012; Pereira and Vence 2012; Triguero et al. 2013;
Chassagnon and Haned 2014),
- entry on new markets (Porter and van der Linde 1995b; Shriva-
stava 1995; Van Hemel and Cramer 2002; Lewis and Cassells
2010; Horbach et al. 2012; Chen 2013),
- increase of market share (Le et al. 2006; Lewis and Cassells 2010;
Horbach et al. 2012).
Firm reputation
Firms aim to maintain a certain image that is consistent with the current
external regulatory pressures (Holtbrügge and Dögl 2012). A growing
body of empirical studies demonstrates that companies foster eco-inno-
vations in order to avoid social pressures, to comply with external regu-
latory pressures and thus to improve their reputation (Holtbrügge and
Dögl 2012). Non-complying behavior is punished, while loss of reputa-
tion and social pressures eventually affect commercial activity (Pacheco
et al. 2010). Companies’ business strategies integrate corporate social re-
sponsibility and environmental awareness in order to gain and enhance
reputational advantages (Eiadat et al. 2008; Hillestad et al. 2010). While
the effect of environmental awareness on a company’s gain of competitive
advantage is indirect rather than direct (Hillestad et al. 2010), this indi-
rect impact is valuable, especially because environmental awareness is dif-
ficult for competitors to imitate and provides the company an improved
reputation as environmentally aware (Hillestad et al. 2010). Moreover,
key factors in customer purchasing decisions are brand recognition and
acceptance; therefore, being the owner of a “green brand” will be increas-
ingly important for companies (Kemp and Foxon 2007). Doran and Ryan
(2012) have shown identified that voluntary agreement has the largest im-
pact on eco-innovations’ implementation in firms, while firms are willing
to pay to brand themselves as eco-friendly. To conclude, expected gain of
firm reputation stemming from engagement in eco-innovations is recog-
nized as an important driver for companies’ implementation of eco-inno-
vations (Eiadat et al. 2008; Hillestad et al. 2010; Pellegrini-Masini and
Leishman 2011; Holtbrügge and Dögl 2012).
- cost savings (Shrivastava 1995; Montabon et al. 2007; Ambec
and Lanoie 2008; Horbach 2008; Lewis and Cassells 2010; Be-
lin et al. 2011; Demirel and Kesidou 2011; Horbach et al. 2012;
Klewitz et al 2012; Pereira and Vence 2012; Triguero et al. 2013;
Chassagnon and Haned 2014),
- entry on new markets (Porter and van der Linde 1995b; Shriva-
stava 1995; Van Hemel and Cramer 2002; Lewis and Cassells
2010; Horbach et al. 2012; Chen 2013),
- increase of market share (Le et al. 2006; Lewis and Cassells 2010;
Horbach et al. 2012).
Firm reputation
Firms aim to maintain a certain image that is consistent with the current
external regulatory pressures (Holtbrügge and Dögl 2012). A growing
body of empirical studies demonstrates that companies foster eco-inno-
vations in order to avoid social pressures, to comply with external regu-
latory pressures and thus to improve their reputation (Holtbrügge and
Dögl 2012). Non-complying behavior is punished, while loss of reputa-
tion and social pressures eventually affect commercial activity (Pacheco
et al. 2010). Companies’ business strategies integrate corporate social re-
sponsibility and environmental awareness in order to gain and enhance
reputational advantages (Eiadat et al. 2008; Hillestad et al. 2010). While
the effect of environmental awareness on a company’s gain of competitive
advantage is indirect rather than direct (Hillestad et al. 2010), this indi-
rect impact is valuable, especially because environmental awareness is dif-
ficult for competitors to imitate and provides the company an improved
reputation as environmentally aware (Hillestad et al. 2010). Moreover,
key factors in customer purchasing decisions are brand recognition and
acceptance; therefore, being the owner of a “green brand” will be increas-
ingly important for companies (Kemp and Foxon 2007). Doran and Ryan
(2012) have shown identified that voluntary agreement has the largest im-
pact on eco-innovations’ implementation in firms, while firms are willing
to pay to brand themselves as eco-friendly. To conclude, expected gain of
firm reputation stemming from engagement in eco-innovations is recog-
nized as an important driver for companies’ implementation of eco-inno-
vations (Eiadat et al. 2008; Hillestad et al. 2010; Pellegrini-Masini and
Leishman 2011; Holtbrügge and Dögl 2012).
