Page 120 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 120
In Pursuit of Eco-innovation
Ghisetti and Rennings 2014) found that process eco-innovations that in-
crease a company’s resource efficiency (in terms of material or energy con-
sumption per unit of output) lead to higher profitability and also increase
the company’s competitiveness. Meanwhile, externality-reducing innova-
tions hamper both profitability and competitiveness (Ghisetti and Ren-
nings 2014). Additionally, process eco-innovations exert a positive im-
pact on the number of employees and the level of turnover (Rennings et
al. 2006) and therefore contribute positively to the company’s growth.
Moreover, companies that engage in eco-innovation demonstrate high-
er levels of turnover per employee than companies which introduce non
eco-innovations, and companies which do not engage in innovation ac-
tivity (Doran and Ryan 2012, 435). In our study, we posit that eco-inno-
vations exert a positive and significant impact on firm performance (in
120 terms of company growth and profitability). We rely on the results of pri-
or research works, which found a positive association between eco-inno-
vations and firm performance. The relationship between eco-innovation
and financial performance was found to be positive in a study focused
on SMEs (Clemens 2006) and for specific industries such as manufac-
turing (Zeng et al. 2011). Moreover, technological innovation efficiency
and firm performance were positively related (Cruz-Cázares et al. 2013),
eco-friendly marketing strategy showed a positive impact on financial
performance (Leonidou et al. 2013a), environmental innovation strate-
gy was positively related to a firm’s positive business performance (Eiadat
et al. 2008) and green product innovation performance has been positive-
ly associated with firm financial performance (Huang and Wu 2010; Ar
2012; Lin et al. 2013a). In addition, prior research works that focused on
eco-product, process and organizational innovation found a positive im-
pact of these factors on firm performance (Cheng and Shiu 2012; Cheng
et al. 2013), while other studies (Ar 2012; Lin et al. 2013a) also found
that green product innovation positively affects firm performance. Con-
cluding with an overview of eco-innovation performance, Horbach et al.
(2012) found that the majority of eco-innovations (80.4%) lead to lower
or constant cost, while 32% of these eco-innovations are associated with
higher turnover; in other words, these eco-innovations are also econom-
ically successful. Likewise, the results of the study undertaken by Para-
schiv et al. (2012) revealed that 35% of participant organizations achieved
encouraging results, whereas another 21% reported significant results
with a strong impact on the organization’s financial performance; final-
ly, 10% specified that the results of eco-innovations were insignificant.
Therefore, we expect that:
Ghisetti and Rennings 2014) found that process eco-innovations that in-
crease a company’s resource efficiency (in terms of material or energy con-
sumption per unit of output) lead to higher profitability and also increase
the company’s competitiveness. Meanwhile, externality-reducing innova-
tions hamper both profitability and competitiveness (Ghisetti and Ren-
nings 2014). Additionally, process eco-innovations exert a positive im-
pact on the number of employees and the level of turnover (Rennings et
al. 2006) and therefore contribute positively to the company’s growth.
Moreover, companies that engage in eco-innovation demonstrate high-
er levels of turnover per employee than companies which introduce non
eco-innovations, and companies which do not engage in innovation ac-
tivity (Doran and Ryan 2012, 435). In our study, we posit that eco-inno-
vations exert a positive and significant impact on firm performance (in
120 terms of company growth and profitability). We rely on the results of pri-
or research works, which found a positive association between eco-inno-
vations and firm performance. The relationship between eco-innovation
and financial performance was found to be positive in a study focused
on SMEs (Clemens 2006) and for specific industries such as manufac-
turing (Zeng et al. 2011). Moreover, technological innovation efficiency
and firm performance were positively related (Cruz-Cázares et al. 2013),
eco-friendly marketing strategy showed a positive impact on financial
performance (Leonidou et al. 2013a), environmental innovation strate-
gy was positively related to a firm’s positive business performance (Eiadat
et al. 2008) and green product innovation performance has been positive-
ly associated with firm financial performance (Huang and Wu 2010; Ar
2012; Lin et al. 2013a). In addition, prior research works that focused on
eco-product, process and organizational innovation found a positive im-
pact of these factors on firm performance (Cheng and Shiu 2012; Cheng
et al. 2013), while other studies (Ar 2012; Lin et al. 2013a) also found
that green product innovation positively affects firm performance. Con-
cluding with an overview of eco-innovation performance, Horbach et al.
(2012) found that the majority of eco-innovations (80.4%) lead to lower
or constant cost, while 32% of these eco-innovations are associated with
higher turnover; in other words, these eco-innovations are also econom-
ically successful. Likewise, the results of the study undertaken by Para-
schiv et al. (2012) revealed that 35% of participant organizations achieved
encouraging results, whereas another 21% reported significant results
with a strong impact on the organization’s financial performance; final-
ly, 10% specified that the results of eco-innovations were insignificant.
Therefore, we expect that:
