Innovation as a driver of eco‐innovation in the firm: An approach from the dynamic capabilities theory

Abstract

The aim of this study is to investigate how innovative capabilities of the firm affect eco‐innovation from a dynamic capability lens. We build on OECD research to conceptualise eco‐innovation as the capacity with which firms modify, redesign, and create products, processes, procedures, and organisations in order to reduce environmental impact. We propose and test the temporal and relational properties of eco‐innovation as a capability. We demonstrate that eco‐innovation possesses two properties of innovative capabilities, namely, persistence over time and interrelation with other innovations. We thus shed new light on the mechanism through which firms engage in eco‐innovation. We also provide empirical evidence to the debate on the relationship between the “normal” innovation (technological or nontechnological) and eco‐innovation. We show that eco‐innovation and innovation are interrelated both simultaneously and sequentially. Moreover, we show that innovation capabilities and eco‐innovation are not only related, but they also have a complementary nature, which facilitates the development of future eco‐innovation.

CEO hometown identity and firm green innovation

“…Previous studies have shown a positive correlation between firm R&D investment and green innovation (Arranz, Arroyabe, Li, & Fernandez de Arroyabe, 2020; Liao & Tsai, 2019). We use research and development expenses to measure the firms' overall levels of innovation (Wagner, 2010).…”

Leveraging industrial-technological innovation to achieve sustainable development: A systems thinking perspective

“…Systems thinking can identify problems within the system and solve the root cause of these problems through a multi-disciplinary "frame" [61]. At present in China, individuals, enterprises, and even the government are advocating technological innovation and system development, which means that future technological innovation presents many challenges [62].…”

“…Systems thinking can identify problems within the system and solve the root cause of these problems through a multi-disciplinary “frame” [ 61 ]. At present in China, individuals, enterprises, and even the government are advocating technological innovation and system development, which means that future technological innovation presents many challenges [ 62 ]. Relying on a simple linear perspective is not sufficient to resolve these challenges; it is also necessary to adopt nonlinear systems thinking and to explore thinking and decision-making from a perspective more in line with the laws of nature [ 63 ].…”

Role of entrepreneurial opportunity identification factors in the eco‐innovation of agribusiness

“…Several scholars demonstrated that external and internal knowledge has a significant role in driving eco-innovation strategies (Marzucchi & Montresor, 2017). Other researchers suggested that enterprises' knowledge received from past innovation boosts innovations, in particular, eco-innovation (Arranz, Arroyabe, Li, & de Arroyabe, 2020). It should be noted as well as enterprises' and entrepreneurs' knowledge positively affects the emergence of eco-innovation (Kobarg, Stumpf-Wollersheim, Schlägel, & Welpe, 2020), which is the case of entrepreneurs' PK.…”