Drivers and barriers of eco‐innovation types for sustainable transitions: A quantitative perspective

Abstract

Firms are influenced by internal factors (resources and capabilities) and external factors (e.g., regulation) when taking the decision to eco-innovate. However, the analysis of the internal factors has received much less attention than the external ones. This paper aims to fill this gap in the literature by analyzing the role of resources, competences and dynamic capabilities (RCCs) as determinants (drivers and barriers) of different eco-innovation (EI) types. Those EI types contribute differently to the sustainable transition of the economy and society, i.e., towards the Circular Economy. The statistical analyses reveal that RCCs are quite relevant as determinants of EIs and that different RCCs are more or less relevant for different EI types. In particular, the determinants of systemic and radical EIs substantially differ from those for continuous improvements. Our results suggest that physical RCCs, involvement in green supply chains, an EI-friendly corporate culture, technology-push and market-pull and internal financing resources represent drivers to these EIs, whereas cooperation, organizational learning, an ISO ecological certification and technological path dependency are barriers. The results may guide firms to pursue competitive and sustainable advantage by innovating through certain EI types corresponding to available and dedicated RCCs. They may also be useful to policy makers who are willing to promote specific EI types.

Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research

“…So far, this article builds on the notion of sustainability innovation, but how must the framework be adapted if more fine‐grained forms of ecological or social innovation were distinguished? For example, the eco‐innovation types identified by Kiefer et al (), who distinguish systemic, externally driven, continuous improvement, radical and technology‐push, and eco‐efficient innovations. It can be assumed that these different types of innovations lead to different business model alignments and different outcomes in terms of stakeholder value creation.…”

“…Breuer, Fichter, Lüdeke‐Freund, & Tiemann, ; Upward & Jones, ). In addition, sustainable entrepreneurs often face a lack of complementary assets, resources, or competencies to align their business models with existing or new markets and to develop a solid positioning towards competitors (Kiefer et al, ; Schaltegger & Wagner, ). Overcoming these challenges and further barriers, which are discussed in more detail below, requires a thorough understanding of how business models can help mediate between sustainability innovations and business success and thus allow sustainable entrepreneurship to unfold.…”

“…The most important uncertainty for sustainable entrepreneurs is whether they can build successful businesses based on their innovations (Schaltegger & Wagner, ), despite the different barriers they may face (Kiefer, Del Río González, & Carrillo‐Hermosilla, ). Depending on personal, organisational, and sociocultural values, business success can be defined as financial returns, nonfinancial effects such as improved innovative capacities, or a positive societal impact through the reduction of ecological and social ills (Breuer & Lüdeke‐Freund, , ).…”

Eco‐innovation and firm growth in the circular economy: Evidence from European small‐ and medium‐sized enterprises

“…The types of circular EI included in the model are EI with a focus on (1) replanning of water usage to minimize use and maximize reuse (WATER), (2) using renewable energy (RENEWABLE), (3) replanning energy usage to minimize use (ENERGY), (4) minimizing waste by recycling, reusing, or selling to another company (WASTE), and (5) redesigning products and services to minimize the use of materials or use recycled materials (ECO‐DESIGN). The first four types (1)–(4) of circular EI are typical examples of process EI that utilize the principles of subsystem change or system change in order to increase the eco‐effectiveness of the operations (Demirel & Kesidou, ; Kiefer, González, & Carrillo‐Hermosilla, ). The fifth category, ECO‐DESIGN, on the other hand, is typically considered a form of product EI.…”

Sustainable business model innovation and acceptance of its practices among Spanish entrepreneurs

“…Research on those factors address the organizational capabilities for eco-innovation (Kiefer et al, 2018) and their relationship with competitive advantages or financial performance (Song & Yu, 2018, p. 136) or with the tools needed to cope with those factors (Tiemann et al, 2018). Ours is a paper willing to satisfy a growing demand for research beyond these organizational capabilities focusing on individual skills, abilities, and traits.…”