Page 97 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 97
Consequences of Eco-innovation Adoption 97
erly, going green is good business”; in other words, it is not necessary for
companies to choose between being green and being profitable.
Even though some companies “avoid” implementation of eco-inno-
vation because of initial investments or an expectation that such innova-
tion will be expensive (Robinson and Stubberud 2013), the literature pro-
vides empirical evidence to support the idea that eco-innovation can be a
win-win situation for both the company and the environment (Horbach
2008). Summarizing the scheme in Figure 4, which depicts possible con-
sequences related to the introduction of eco-innovations, we can see that
product and technological eco-innovations are an opportunity for com-
panies to consolidate their position on the domestic market and inter-
nationalize by entering or expanding to foreign markets, while they can
also reduce their costs through material saving innovations along inter-
national material supply chains with the adoption of process eco-innova-
tions (EIO 2011b).
Among the most important benefits for firms that go “green” and aim
to create a more sustainable business model are the following:
- possibility to gain a green competitive advantage and competi-
tiveness on the international markets (Tien et. al 2005; Chen et
al. 2006; Triebswetter and Wackerbauer 2008; Johnson 2009;
European Commission 2012; Ar 2012; Hofer et al. 2012; Wong
2012; Leonidou et al. 2013a),
- entry into foreign markets/internationalization (Beise and
Rennings 2005; Martin-Tapia et al. 2010),
- improvement of firm performance (Clemens 2006; Johnson
2009; Zeng et al. 2011; European Commission 2012; Ar 2012;
Doran and Ryan 2012; Lin et al. 2013a),
- gain of sustainable growth on domestic and international mar-
kets (European Commission 2012),
- achievement of global corporate sustainability goals and
objectives in organizations (Paraschiv et al. 2012).
Other benefits that firms can seize from the adoption of eco-innova-
tion are as follows: through cost efficiency, firms can gain in cost savings,
corporate image can be enhanced and relationships with local communi-
ties can be improved, followed by access to new green markets and gain of
superior competitive advantage (Shrivastava 1995). In addition, firms can
achieve a cost advantage (operating at a lower cost than competitors but
offering a comparable product) or a differentiation advantage (when cus-
tomers consistently perceive the firm’s offer as superior to its competitors’
erly, going green is good business”; in other words, it is not necessary for
companies to choose between being green and being profitable.
Even though some companies “avoid” implementation of eco-inno-
vation because of initial investments or an expectation that such innova-
tion will be expensive (Robinson and Stubberud 2013), the literature pro-
vides empirical evidence to support the idea that eco-innovation can be a
win-win situation for both the company and the environment (Horbach
2008). Summarizing the scheme in Figure 4, which depicts possible con-
sequences related to the introduction of eco-innovations, we can see that
product and technological eco-innovations are an opportunity for com-
panies to consolidate their position on the domestic market and inter-
nationalize by entering or expanding to foreign markets, while they can
also reduce their costs through material saving innovations along inter-
national material supply chains with the adoption of process eco-innova-
tions (EIO 2011b).
Among the most important benefits for firms that go “green” and aim
to create a more sustainable business model are the following:
- possibility to gain a green competitive advantage and competi-
tiveness on the international markets (Tien et. al 2005; Chen et
al. 2006; Triebswetter and Wackerbauer 2008; Johnson 2009;
European Commission 2012; Ar 2012; Hofer et al. 2012; Wong
2012; Leonidou et al. 2013a),
- entry into foreign markets/internationalization (Beise and
Rennings 2005; Martin-Tapia et al. 2010),
- improvement of firm performance (Clemens 2006; Johnson
2009; Zeng et al. 2011; European Commission 2012; Ar 2012;
Doran and Ryan 2012; Lin et al. 2013a),
- gain of sustainable growth on domestic and international mar-
kets (European Commission 2012),
- achievement of global corporate sustainability goals and
objectives in organizations (Paraschiv et al. 2012).
Other benefits that firms can seize from the adoption of eco-innova-
tion are as follows: through cost efficiency, firms can gain in cost savings,
corporate image can be enhanced and relationships with local communi-
ties can be improved, followed by access to new green markets and gain of
superior competitive advantage (Shrivastava 1995). In addition, firms can
achieve a cost advantage (operating at a lower cost than competitors but
offering a comparable product) or a differentiation advantage (when cus-
tomers consistently perceive the firm’s offer as superior to its competitors’
