Page 119 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 119
Hypotheses Development 119
tion has been broken into two individual components – competitive in-
tensity and competitive pressure. Building on institutional theory, we as-
sume that companies’ implementation of eco-innovation can result from
a mimetic pressure, as a result of which companies follow their compet-
itors’ actions and pursue the same goals – that is, they mimic their ac-
tions, especially those that turn out to be lucrative (Spence et al. 2010; Li
2014). Eco-innovations have become an area in which companies have an
opportunity to gain a competitive advantage over competitors through
differentiation of a firm product, especially when operating in a highly
competitive market (Lin et al. 2013a). Therefore, companies that oper-
ate in fiercely competitive markets are more likely to seek to be greener
than their competitors (implementing new products or new management
methods) to yield extra profits in future (Lin et al. 2013b). Past research
on competitive pressure found it to be an effective driver of eco-innova-
tion practices as well (Li 2014). The importance of providing green prod-
ucts through environmental innovation in order to establish a green im-
age, increase market share and achieve sustainable development in an
increasingly intense competitive environment is rising worldwide (Li
2014). The development of green products serves as means for companies
to achieve a competitive advantage (Dangelico and Pontrandolfo 2010).
The above discussion leads to the following hypotheses:
Hypothesis 5a: There is a positive and significant relationship
between competition intensity and companies’ implementation
of eco-innovation.
Hypothesis 5b: There is a positive and significant relationship
between competition pressure and companies’ implementation
of eco-innovation.
Hypotheses concerning consequences of eco-innovation
This section describes the development of hypotheses focused on eco-in-
novation outcomes. Hypotheses related to the eco-innovation outcomes
pertain to firm performance (Section 5.2.1), economic performance (Sec-
tion 5.2.2), competitive performance (Section 5.2.3) and internationaliza-
tion (Section 5.2.4).
Eco-innovation and firm performance
Findings of previous research pertaining to the exploration of eco-inno-
vation’s influence on firm performance provide mixed results and can lead
to misleading conclusions. Researchers (Rexhäuser and Rammer 2013;
tion has been broken into two individual components – competitive in-
tensity and competitive pressure. Building on institutional theory, we as-
sume that companies’ implementation of eco-innovation can result from
a mimetic pressure, as a result of which companies follow their compet-
itors’ actions and pursue the same goals – that is, they mimic their ac-
tions, especially those that turn out to be lucrative (Spence et al. 2010; Li
2014). Eco-innovations have become an area in which companies have an
opportunity to gain a competitive advantage over competitors through
differentiation of a firm product, especially when operating in a highly
competitive market (Lin et al. 2013a). Therefore, companies that oper-
ate in fiercely competitive markets are more likely to seek to be greener
than their competitors (implementing new products or new management
methods) to yield extra profits in future (Lin et al. 2013b). Past research
on competitive pressure found it to be an effective driver of eco-innova-
tion practices as well (Li 2014). The importance of providing green prod-
ucts through environmental innovation in order to establish a green im-
age, increase market share and achieve sustainable development in an
increasingly intense competitive environment is rising worldwide (Li
2014). The development of green products serves as means for companies
to achieve a competitive advantage (Dangelico and Pontrandolfo 2010).
The above discussion leads to the following hypotheses:
Hypothesis 5a: There is a positive and significant relationship
between competition intensity and companies’ implementation
of eco-innovation.
Hypothesis 5b: There is a positive and significant relationship
between competition pressure and companies’ implementation
of eco-innovation.
Hypotheses concerning consequences of eco-innovation
This section describes the development of hypotheses focused on eco-in-
novation outcomes. Hypotheses related to the eco-innovation outcomes
pertain to firm performance (Section 5.2.1), economic performance (Sec-
tion 5.2.2), competitive performance (Section 5.2.3) and internationaliza-
tion (Section 5.2.4).
Eco-innovation and firm performance
Findings of previous research pertaining to the exploration of eco-inno-
vation’s influence on firm performance provide mixed results and can lead
to misleading conclusions. Researchers (Rexhäuser and Rammer 2013;
