Page 122 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 122
In Pursuit of Eco-innovation
kets and gain of superior competitive advantage (Shrivastava 1995). Fur-
ther, Sarkar (2013) differentiated direct and indirect benefits. Direct ben-
efits consist of operational advantages, which are seen in cost savings and
derive from greater resource productivity and better logistics, followed
by sales from commercialization (Sarkar 2013). Indirect benefits include
better image; better relations with customers, suppliers and authorities;
health and safety benefits; greater worker satisfaction; and, because of
knowledge holders, enhanced innovation capability overall. Chen et al.
(2006) stressed that investing in eco-innovation helps companies to im-
prove their competitive advantage. The association of product and pro-
cess eco-innovation with the company’s competitive advantage has been
found to be positive (Chen et al. 2006), whereas product eco-innovation
exerts a stronger influence on competitive advantage than does process
122 eco-innovation (Wong 2012). Moreover, companies’ deployment of green
product, process and managerial innovation will lead to cost savings,
better product quality, increased efficiency and productivity and, con-
sequently, improved competitive advantage (Chiou et al. 2011). Indeed,
many companies worldwide have transformed their entire business oper-
ations to become more eco-efficient and thereby achieved a competitive
advantage over their competitors (Mourad and Ahmed 2012). In summa-
ry, the past findings (Sarkar 2013) emphasize that companies increasing-
ly recognize the fact that greening their business by improving resource
productivity may increase their short and long-term competitiveness and
create new markets. The above discussion leads us to propose the follow-
ing hypothesis:
Hypothesis 8: The relationship between eco-innovation’s perfor-
mance and competitive benefits is direct and positive.
Eco-innovation and internationalization
This hypothesis aims to test the relationship between eco-innovation’s
performance and firms’ internationalization. Prior research has found a
positive relationship between advanced environmental strategies and in-
ternationalization (i.e., export intensity; Martin-Tapia et al. 2010). Fur-
thermore, a proactive environmental strategy is positively related to a
company’s export performance (Martin-Tapia et al. 2008). In addition,
Beise and Rennings (2005) argued that regulations to stimulate eco-in-
novation have to be properly set; if national regulations comply with in-
ternational markets, demand and international regulations, the “doors to
international markets will be open”; otherwise, these eco-products and
kets and gain of superior competitive advantage (Shrivastava 1995). Fur-
ther, Sarkar (2013) differentiated direct and indirect benefits. Direct ben-
efits consist of operational advantages, which are seen in cost savings and
derive from greater resource productivity and better logistics, followed
by sales from commercialization (Sarkar 2013). Indirect benefits include
better image; better relations with customers, suppliers and authorities;
health and safety benefits; greater worker satisfaction; and, because of
knowledge holders, enhanced innovation capability overall. Chen et al.
(2006) stressed that investing in eco-innovation helps companies to im-
prove their competitive advantage. The association of product and pro-
cess eco-innovation with the company’s competitive advantage has been
found to be positive (Chen et al. 2006), whereas product eco-innovation
exerts a stronger influence on competitive advantage than does process
122 eco-innovation (Wong 2012). Moreover, companies’ deployment of green
product, process and managerial innovation will lead to cost savings,
better product quality, increased efficiency and productivity and, con-
sequently, improved competitive advantage (Chiou et al. 2011). Indeed,
many companies worldwide have transformed their entire business oper-
ations to become more eco-efficient and thereby achieved a competitive
advantage over their competitors (Mourad and Ahmed 2012). In summa-
ry, the past findings (Sarkar 2013) emphasize that companies increasing-
ly recognize the fact that greening their business by improving resource
productivity may increase their short and long-term competitiveness and
create new markets. The above discussion leads us to propose the follow-
ing hypothesis:
Hypothesis 8: The relationship between eco-innovation’s perfor-
mance and competitive benefits is direct and positive.
Eco-innovation and internationalization
This hypothesis aims to test the relationship between eco-innovation’s
performance and firms’ internationalization. Prior research has found a
positive relationship between advanced environmental strategies and in-
ternationalization (i.e., export intensity; Martin-Tapia et al. 2010). Fur-
thermore, a proactive environmental strategy is positively related to a
company’s export performance (Martin-Tapia et al. 2008). In addition,
Beise and Rennings (2005) argued that regulations to stimulate eco-in-
novation have to be properly set; if national regulations comply with in-
ternational markets, demand and international regulations, the “doors to
international markets will be open”; otherwise, these eco-products and
