1. The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance
- Author
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Justin Doran and Geraldine Ryan
- Subjects
Strategy and Management ,05 social sciences ,Geography, Planning and Development ,Control (management) ,Global warming ,Sample (statistics) ,010501 environmental sciences ,Management, Monitoring, Policy and Law ,01 natural sciences ,Natural resource ,Environmentally friendly ,0502 economics and business ,Environmental innovation ,Economics ,Environmental regulation ,Environmental policy ,Business and International Management ,Marketing ,050203 business & management ,Industrial organization ,0105 earth and related environmental sciences - Abstract
Today, firms are faced with a number of environmental challenges, such as global warming, pollution control and declining natural resources. While there is increasing pressure to deliver environmentally friendly products and services, little is known about what drives the many different types of environmental innovation, or how such pursuits' impact firm performance. Using a sample of 2181 firms, this paper examines the factors that drive nine different types of eco-innovation in Ireland, and assesses how such innovations impact firm performance. We find that, while demand-side, supply-side and regulatory drivers impact on the likelihood of a firm engaging in eco-innovation, the relative magnitudes of these impacts vary across the types of eco-innovation considered. Moreover, we find that only two of the nine types of eco-innovation positively impact firm performance. The results point to regulation and customer pressure as viable mechanisms through which firms can be encouraged to eco-innovate. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
- Published
- 2014
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