Product Innovation: Path to Sustainable Competitive Advantage with Use of Environmental, Social and Governance Principles

Abstract

Purpose of the study: This study aims to analyze the relationship between product innovation and strategic resources used by the furniture enterprises, under the perspective of sustainable competitive advantage, with the intention to identify the resources previous to innovation. Methodology/approach: The method used in this research is a quantitative and descriptive study, through a survey, applied to 1067 companies in Brazilian furniture industry. The data analysis occurred through Structural Equation Modeling. Originality/Relevance: Product innovation and strategic resources are capable of providing great potential for economic transformation. It is strategically acknowledged that there is a relationship between product innovation and the use of resources, however, there are as yet insufficient empirical studies to determine which resources influence product innovation. Another important aspect is to evaluate the influence of Environmental, Social and Governance sustainability precepts in the development of new products. Key findings: In the empirical study, noticed that Product Innovation results from the use of resources, which configures innovation antecedents. Theoretical/methodological contributions: This study contributes the advancement of science, which can be used to analyze the antecedents of Product Innovation, which pointed out that companies with strategic resources can expand the capacity of innovation by generating sustainable Product Innovation, which leads to the success of a new product. Social contributions/to management: This study can contribute to managerial decisions, as the results indicate that the Success in New Product Development proved to be an essential form of competitive advantage, comparing the results of Product Innovation with competitors and relating this performance to the use of Environmental, Social and Governance principles.

A Agilidade Organizacional e a Difusão de Inovação Tecnológica das Empresas Cleantech

“…Cleantechs' differences from other companies in the same technology sector are based on how they position themselves to positively impact the environment. In addition, the implementation of current technologies such as Machine Learning, IoT, Big Data, and Blockchain collaborate with the advancement of sustainability within these companies, to create agility in the process and development of the diffusion of the technologies employed (De Guimarães, Severo & Dorion, 2022;Shakeel, 2021;Wang et al, 2019).…”

“…In this sense, diffusion of technological innovation (DTI) can be characterized by the communication of innovation and its guidelines within a social system, such as: innovation, communication, time, and social system (De Guimarães, Severo & Dorion, 2022;Vargo, Akaka & Wieland, 2020). The diffusion process goes through different organizations, in the approach of Cleantechs (Clean Technology Companies), considering the creation of a product and insertion of value in technologies of low and / or zero environmental impact, this companies use the different technologies for creating innovations, which are: Internet of Things (IoT), Machine Learning, Big Data and Blockchain (De Guimarães, Severo & Dorion, 2022;Wang et al, 2019;Shakeel, 2021;Pernick & Wilder, 2007).…”

“…The recurrent adaptations of companies in search of Competitive Advantage (CV) are visualized as the recognition acquired by their buyers by creating value in products or services exceeding costs to position themselves ahead of their competitors (De Guimarães, Severo & Dorion, 2022;Porter, 2003). In this way, Cleantechs seek insertion and subsequent traction in the market with its sustainable business models combined with a technological structure, delivering a differential in its sector of operation.…”

Driving Competitive Advantage in Cleantech Companies: A Model of Smart Regulation, Organizational Agility, and Technological Innovation

“…In this sense, diffusion of technological innovation (DTI) can be characterized by the communication of innovation and its guidelines within a social system, such as: innovation, communication, time, and social system (De Guimarães, Severo & Dorion, 2022;Vargo, Akaka & Wieland, 2020). The diffusion process goes through different organizations, in the approach of Cleantechs (Clean Technology Companies), considering the creation of a product and insertion of value in technologies of low and / or zero environmental impact, this companies use the different technologies for creating innovations, which are: Internet of Things (IoT), Machine Learning, Big Data and Blockchain (De Guimarães, Severo & Dorion, 2022;Wang et al, 2019;Shakeel, 2021;Pernick & Wilder, 2007).…”

The Influence of Product Innovation, Environmental Strategy and Circular Economy On Sustainable Development in Organizations in Northeastern Brazil

“…Green innovation has been considered one of the most significant components of economic progress, environmental sustainability, and improvement of living standards, as it has developed as a strategic objective both in theory and in practice, due to the interaction between innovation and sustainability (Moshood et al, 2022). Organizations start to innovate in a sustainable way (De Guimarães, Severo & Dorion, 2022), that is, using environmental practices, rationing the use of natural resources, optimizing the use of raw materials, and focusing on sustainable development (Hojnik, Ruzzier & Manolova, 2018;García-Sánchez et al, 2020;De Guimarães et al, 2021;Pineda-Escobar, 2022), as sustainable development meets the needs of current generations without harming the ability of future generations to have their needs met (Plan International, 2021;Abdulkadir et al, 2022). Given the above, Hypothesis 1 is presented: H1: Product innovation is positively related to sustainable development.…”