The link between eco-innovation and business performance: a Taiwanese industry context

Abstract

In practice, there are various types of eco-innovation. While each type of innovation has its own attributes, determinants, and contribution to business performance, it is not effective to implement eco-innovation programs without a holistic view. This study draws from the resource-based view theory to investigate inter-relationships among three types of eco-innovation (process, product, organizational) and their relative impact on business performance. Using structural equation modeling with 121 samples collected from Taiwan Environmental Management Association, we find that eco-organizational innovation has the strongest effect on business performance. Additionally, eco-process and eco-product innovations partially mediate the effects of eco-organizational innovation, and eco-product innovation mediates eco-process innovations' effects on business performance. Business performance is directly and indirectly affected by eco-organizational, eco-process, and eco-product innovations. The findings suggest that, in order to develop effective eco-innovation programs, managers must understand the interdependence and co-evolutionary relationships between different types of eco-innovation. Overall, this study extends the discussion of innovation to the area of environmental innovation or eco-innovation.

Governance Mechanisms for Green Supply Chain Partnership

“…TCE suggests that a detailed contract can minimize any uncertainty associated with business transactions [24]. A higher degree of contract specificity could impose stronger control on business relationships and, thus, discourages opportunistic behavior or abuse [8,33]. Many studies suggested incorporating incentives into the contract (e.g., revenue sharing) to facilitate the implementation of joint sustainability initiatives [12,37].…”

“…Many studies have empirically verified the benefits of supply chain information sharing, including shortening lead time, improving forecasting, mitigating the bullwhip effect, and reducing inventory [8,30]. In the case of sustainability collaboration, Lin and Chen [39] found that sharing production plan and shipment information with their 3PL providers would significantly improve after-sale service.…”

“…GSCM helps companies reach their sustainability goals, as well as strengthen their social endeavors, further increasing the value and need of GSCM [3][4][5][6]. GSCM requires cooperation among supply chain parties in various areas, such as green purchasing [7], process improvement and product design [8], green innovations [8][9][10], and reverse logistics [11]. For instance, General Motors outsourced its painting process for cost and waste reductions.…”

Performance measure of eco-process innovation: insights from a literature review

“…Technical eco-innovations take place in products and processes and involve technologies aimed at improving the environmental performance of products and processes. Non-technical eco-innovations include people-oriented changes which normally occur in marketing (related to implementation of more green product design and packaging, pricing, distribution and promotion activities) ( [33]), organizational (shift to a new or improved ecological-oriented managerial arrangement such as Environmental Management System (EMS)) ( [34]), institutional (includes improvement of values, norms, culture and behaviour) ([1]) and system (systemic level transformation among networked organizations which involve combination of all other types of eco-innovation -product, process, marketing, organizational and institutional) ( [35]). The concern of this study is on the technological eco-innovation which taking place in the production processes.…”

“…The concern of this study is on the technological eco-innovation which taking place in the production processes. [34] and [12] used the term "eco-process innovation" to describe this type of eco-innovation, and the similar term is also used throughout the discussion of this paper.…”