A systematic literature review and bibliometric analysis of eco‐innovation on financial performance: Identifying barriers and drivers

Abstract

Eco‐innovation strategies are essential elements for companies developing core competencies in the circular economy model. The academic world has begun to study the knowledge of these business decisions, and there is incipient literature on the subject. In this context, this paper aims to contribute to the current knowledge on the impact of eco‐innovation strategies on corporate performance by exposing and synthesizing the distinct positions found in the literature. For this purpose, a systematic and bibliometric review of 81 articles related to the economic impact of eco‐innovation on firm performance, as well as the barriers and drivers of these strategies, was carried out. After analyzing the several types of eco‐innovation, our results show that although previous empirical evidence suggests the existence of a positive effect, it is not generalizable due to the existence of several factors that may condition the impact of eco‐innovation on corporate performance and its implementation. This study delves into the current academic literature on eco‐innovation and firm performance, determining that both size and the environment in which a company is framed constitute a series of conditioning factors that may clarify why there is no consensus in the academic literature in this regard. In addition, this work encourages future lines of research with the aim of shedding light on this field of knowledge.

An Interdisciplinary and Multilevel Analysis of Local Economy Determinants and Their Impact on Firm Performance—Considering Porter’s Diamond Model, Clusters, and Industry

“…For example, customers' expectations [4] or the development of Demand-Related Business Models [64] represent modern external determinants associated with superior firm performance. At the same time, the involvement of firms in local communities through eco-innovation practices [35] or CSR initiatives [34], the development of strategic partnerships in their supply chain [33], or the inclusion of corporate investors among the firm's shareholders [24] were also found to be positively associated with firm performance. On the other side of the coin, ref.…”

“…Moreover, the strategic partnerships developed by firms in their supply chain were positively associated with firm performance [33]. In addition, the involvement of the firm in the local economy through CSR initiatives [34] and the implementation of eco-innovation practices [35] were also associated with superior firm performance. Recently, ref.…”

Eco-innovation strategies in the development of internationalization

“…Although there is considerable significance and scholarly interest in the domain of eco-innovation, the realm of eco-innovation strategies has not undergone a comprehensive exploration within the scientific literature. The inherent complexity and lack of clarity persist in understanding the general nature of eco-innovation strategies (López Pérez et al, 2023;Luan et al, 2023;Shukla, 2019). As noted by Shukla (2019), the scientific literature lacks a consensus regarding the common theoretical framework pertinent to eco-innovation strategy.…”

“…However, to date, very little is known about the interrelationships between the two (Galbreath et al, 2021;Martínez-Ros & Merino, 2023). Furthermore, despite the growing scientific discussions on eco-innovation, there is a noticeable research gap when it comes to a comprehensive understanding of the concept of an eco-innovation strategy (Shukla, 2019;López Pérez et al, 2023). Current conceptualizations of eco-innovation strategy are notably constrained.…”

“…Most studies investigate eco-innovation from the perspective of a solitary solution and isolated practices, and there is a shortage of studies on the phenomenon from an organizational management and strategic decision-making perspective (López Pérez et al, 2023;Tamayo-Orbegozo et al, 2017). Approaching eco-innovation from a non-strategic perspective may result in long-term negative consequences, such as ineffective resource expenditure on isolated eco-innovation practices that are widely spread throughout the firm, losing valuable resources, INTRODUCTION customers, and competitiveness (Wijethilake et al, 2018).…”