Eco-innovation as an antecedent of environmental performance and sustainable competitive performance in the manufacturing industry

María del Carmen Martínez-Serna, Javier Eduardo Vega-Martínez, María del Carmen Bautista-Sánchez, Gabriela Citlalli López-Torres

Article ID: 7331
Vol 8, Issue 14, 2024

VIEWS - 977 (Abstract)

Abstract


In recent years, the environment in the manufacturing industry has become strongly competitive, which is why companies have found it necessary to constantly adjust their strategies and take actions aimed at improving their performance and competitiveness in a sustainable way to grow and remain in the market. Therefore, this paper aims to present an analysis to explain the current situation in the manufacturing industry in Aguascalientes, Mexico, by means of a survey in which product eco-innovation (PEI), process eco-innovation (PrEI) and organizational eco-innovation (OEI) and its effect on environmental performance (EP) and sustainable competitive performance (SCP) were measured. The results show that (EP) is positively and significantly influenced by (PEI) and (PrEI), while no significant influence is found for (OE). Furthermore, it is confirmed that environmental performance positively and significantly influences (SCP). The findings obtained from this study point to the relevance of promoting eco-innovation activities in the manufacturing sector, as this will ensure sustainable competitiveness.


Keywords


product Eco-innovation; process Eco-innovation; organizational Eco-innovation; structural analysis; manufacturing industry

Full Text:

PDF


References

  1. Abu Seman, N. A., Govindan, K., Mardani, A., et al. (2019). The mediating effect of green innovation on the relationship between green supply chain management and environmental performance. Journal of Cleaner Production, 229, 115–127. https://doi.org/10.1016/j.jclepro.2019.03.211
  2. Agenda 2030. (2019). National Strategy for the Implementation of the Agenda 2030 in Mexico (Spanish). Available online: https://www.gob.mx/cms/uploads/attachment/file/514075/EN-A2030Mx_VF.pdf
  3. Alkahtani, A., Nordin, N., and Khan, R. U. (2020). Does government support enhance the relation between networking structure and sustainable competitive performance among SMEs? Journal of Innovation and Entrepreneurship, 9,1-16. https://doi.org/10.1186/s13731-020-00127-3
  4. Almeida, F., and Wasim, J. (2023). Eco-innovation and sustainable business performance: perspectives of SMEs in Portugal and the UK. Society and Business Review, 18(1), 28-50. https://doi.org/10.1108/SBR-12-2021-0233
  5. Andersen, J. (2021). A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms. Technovation, 104, 102254. https://doi.org/10.1016/j.technovation.2021.102254
  6. Anderson, J. C., and Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423. https://doi.org/10.1037/0033-2909.103.3.411
  7. Arranz, N., Arroyabe, M. F., Molina-García, A., et al. (2019). Incentives and inhibiting factors of eco-innovation in the Spanish firms. Journal of Cleaner Production, 220, 167-176. https://doi.org/10.1016/j.jclepro.2019.02.126
  8. Arsawan, I. W. E., Koval, V., Rajiani, I., et al. (2022). Leveraging knowledge sharing and innovation culture into SMEs sustainable competitive advantage. International journal of productivity and performance management, 71(2), 405-428. https://doi.org/10.1108/IJPPM-04-2020-0192
  9. Baeshen, Y., Soomro, Y. A., and Bhutto, M. Y. (2021). Determinants of green innovation to achieve sustainable business performance: evidence from SMEs. Frontiers in Psychology, 12, 767968. https://doi.org/10.3389/fpsyg.2021.767968
  10. Bag, S., Dhamija, P., Bryde, D. J., et al. (2022). Effect of eco-innovation on green supply chain management, circular economy capability, and performance of small and medium enterprises. Journal of Business Research, 141, 60-72. https://doi.org/10.1016/j.jbusres.2021.12.011
  11. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
  12. Bentler, P. M. (1990). Comparative fit Indexes in structural models. Psychological Bulletin, 107(2), 238–246. https://doi.org/10.1037/0033-2909.107.2.238
  13. Carmines, E. G., and Mc Iver, J. P. (1983). An introduction to the analysis of models with unobserved variables. Political methodology, 51-102.
  14. Carrillo-Hermosilla, J., del González, P. R., and Könnölä, T. (2009). What is eco-innovation? Eco-Innovation, 6–27. https://doi.org/10.1057/9780230244856_2
  15. Cha, W., Abebe, M., and Dadanlar, H. (2019). The effect of CEO civic engagement on corporate social and environmental performance. Social Responsibility Journal, 15(8), 1054-1070. https://doi.org/10.1108/SRJ-05-2018-0122
  16. Chen, Y. S. (2008). The driver of green innovation and green image - green core competence. Journal of Business Ethics, 81(3), 531–543. https://doi.org/10.1007/s10551-007-9522-1
  17. Chen, Y. S., Lai, S. B., and Wen, C. T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339. https://doi.org/10.1007/s10551-006-9025-5
  18. Chen, Z., Xue, J., Rose, A. Z., et al. (2016). The impact of high-speed rail investment on economic and environmental change in China: A dynamic CGE analysis. Transportation Research Part A: Policy and Practice, 92, 232-245. https://doi.org/10.1016/j.tra.2016.08.006
  19. Cheng, C. C., and Shiu, E. C. (2012). Validation of a proposed instrument for measuring eco-innovation: An implementation perspective. Technovation, 32(6), 329–344. https://doi.org/10.1016/j.technovation.2012.02.001
  20. Cheng, C. C., Yang, C. L., and Sheu, C. (2014). The link between eco-innovation and business performance: A Taiwanese industry context. Journal of cleaner production, 64, 81-90. https://doi.org/10.1016/j.jclepro.2013.09.050
  21. Chiou, T. Y., Chan, H. K., Lettice, F., et al. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822–836. https://doi.org/10.1016/j.tre.2011.05.016
  22. Costantini, V., Crespi, F., Marin, G., et al. (2017). Eco-innovation, sustainable supply chains and environmental performance in European industries. Journal of Cleaner Production, 155, 141–154. https://doi.org/10.1016/j.jclepro.2016.09.038
  23. Coyne, K. P. (1986). Sustainable competitive advantage-What it is, what it isn’t. Business horizons, 29(1), 54-61. https://doi.org/10.1016/0007-6813(86)90087-X
  24. Degong, M., Ullah, F., Khattak, M. S., and Anwar, M. (2018). Do international capabilities and resources configure firm’s sustainable competitive performance? Research within Pakistani SMEs. Sustainability (Switzerland), 10(11). https://doi.org/10.3390/su10114298
  25. Eco-Innovation Observatory. (2010). Methodological report. Eco-Innovation Observatory. Funded by the European Commission, DGEnvironment, Brussels.
  26. European commission. (2011). Communication from the commission to the European parliament, the council, the European economic and social committee and the committee of the regions.
  27. Fatma, N., and Haleem, A. (2023). Exploring the Nexus of Eco-Innovation and Sustainable Development: A Bibliometric Review and Analysis. Sustainability (Switzerland), 15(16). https://doi.org/10.3390/su151612281
  28. Flores, P. E., and Medrano, L. A. (2016). Affection and its dimensions: Models contrasted through confirmatory factor analysis of PANAS Schedule (Spanish). Liberabit, 22(2), 173-184.
  29. Fornell, C., and Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
  30. Frare, A. B., and Beuren, I. M. (2022). The role of green process innovation translating green entrepreneurial orientation and proactive sustainability strategy into environmental performance. Journal of Small Business and Enterprise Development, 29(5), 789-806. https://doi.org/10.1108/JSBED-10-2021-0402
  31. Fuller, C. M., Simmering, M. J., Atinc, G., et al. (2016). Common methods variance detection in business research. Journal of business research, 69(8), 3192-3198. https://doi.org/10.1016/j.jbusres.2015.12.008
  32. Gąsior, A., Grabowski, J., Ropęga, J., et al. (2022). Creating a Competitive Advantage for Micro and Small Enterprises Based on Eco-Innovation as a Determinant of the Energy Efficiency of the Economy. Energies, 15(19), 6965. https://doi.org/10.3390/en15196965
  33. Gaskin, J., James, M., and Lim, J. (2019). Master Validity Tool. AMOS Plugin
  34. Geng, D., Lai, K. H., and Zhu, Q. (2021). Eco-innovation and its role for performance improvement among Chinese small and medium-sized manufacturing enterprises. International Journal of Production Economics, 231(2), 107869. https://doi.org/10.1016/j.ijpe.2020.107869
  35. George, D., and Mallery, M. (2010). SPSS for windows step by step: A simple guide and reference 3rd ed. Boston, 17.0 update (10 ed.) Boston: Pearson.
  36. Graafland, J., and Bovenberg, L. (2020). Government regulation, business leaders’ motivations and environmental performance of SMEs. Journal of Environmental Planning and Management, 63(8), 1335-1355. https://doi.org/10.1080/09640568.2019.1663159
  37. Habib, M. A., Bao, Y., and Ilmudeen, A. (2020). The impact of green entrepreneurial orientation, market orientation and green supply chain management practices on sustainable firm performance. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1743616
  38. Hair, J. F., Gabriel, M., and Patel, V. (2014). AMOS covariance-based structural equation modeling (CB-SEM): Guidelines on its application as a marketing research tool. Brazilian Journal of Marketing, 13(2).
  39. Hair, J. F., Anderson, R. E., Tatham, R. L., et al. (1995). Multivariate data analysis with readings. Prentice-Hall.
  40. Henseler, J., Ringle, C. M., and Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43, 115-135.
  41. Hojnik, J., Ruzzier, M., and Manolova, T. (2017). Eco-innovation and firm efficiency: Empirical evidence from Slovenia. Foresight and STI Governance, 11(3), 103–111. https://doi.org/10.17323/2500-2597.2017.3.103.111
  42. Instituto Nacional de Estadísticas y Geografía. (2019). Economic Censuses (Spanish). Available online: https://www.inegi.org.mx/programas/ce/2019
  43. Instituto Nacional de Estadísticas y Geografía. (2024). Gross Domestic Product (Spanish). Available online: https://www.inegi.org.mx/contenidos/saladeprensa/boletines/2024/pib_pcons/pib_pconst2024_02.pdf
  44. Janahi, N. A., Durugbo, C. M., and Al-Jayyousi, O. R. (2021). Eco-innovation strategy in manufacturing: A systematic review. In Cleaner Engineering and Technology (Vol. 5). Elsevier Ltd. https://doi.org/10.1016/j.clet.2021.100343
  45. Jiao, X., Zhang, P., He, L., and Li, Z. (2023). Business sustainability for competitive advantage: identifying the role of green intellectual capital, environmental management accounting and energy efficiency. Economic research-Ekonomska istraživanja, 36(2). https://doi.org/10.1080/1331677X.2022.2125035
  46. Khan, S. Z., Yang, Q., and Waheed, A. (2019). Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance. Corporate Social Responsibility and Environmental Management, 26(2), 285-295. https://doi.org/10.1002/csr.1678
  47. Kim, S. T., Lee, H. H., and Lim, S. (2021). The effects of green SCM implementation on business performance in SMEs: a longitudinal study in electronics industry, Sustainability, 13(21), 11874. https://doi.org/10.3390/su132111874
  48. Kraus, S., Rehman, S. U., and García, F. J. S. (2020). Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation. Technological Forecasting and Social Change, 160, 120262. https://doi.org/10.1016/j.techfore.2020.120262
  49. Kuncoro, W., and Suriani, W. O. (2018). Achieving Sustainable Competitive Advantage through Product Innovation and Market Driving. Asia Pacific Management Review, 23(3), 186–92. https://doi.org/10.1016/j.apmrv.2017.07.006
  50. Le, T. T., and Ikram, M. (2022). Do sustainability innovation and firm competitiveness help improve firm performance? Evidence from the SME sector in Vietnam. Sustainable Production and Consumption, 29, 588-599. https://doi.org/10.1016/j.spc.2021.11.008
  51. Leisen, R., Steffen, B., and Weber, C. (2019). Regulatory risk and the resilience of new sustainable business models in the energy sector. Journal of cleaner production, 219, 865-878. https://doi.org/10.1016/j.jclepro.2019.01.330
  52. Li, Y. (2014). Environmental innovation practices and performance: moderating effect of resource commitment. Journal of Cleaner Production, 66, 450-458. https://doi.org/10.1016/j.jclepro.2013.11.044Get rights and content
  53. Liao, Y. C., and Tsai, K. H. (2019). Bridging market demand, proactivity, and technology competence with eco‐innovations: The moderating role of innovation openness. Corporate Social Responsibility and Environmental Management, 26(3), 653-663. https://doi.org/10.1002/csr.1710
  54. López, C. J. (2021). Eco-innovation, the development of the future. The concept of eco-innovation refers to the development of new products or production processes, or even business models, that have a low environmental impact (Spanish). Forbes México. Available online: https://www.forbes.com.mx/red-forbes-la-ecoinnovacion-el-desarrollo-del-futuro/
  55. Mady, K., Battour, M., Aboelmaged, M., et al. (2023). Linking internal environmental capabilities to sustainable competitive advantage in manufacturing SMEs: The mediating role of eco-innovation. Journal of Cleaner Production, 417, 137928. https://doi.org/10.1016/j.jclepro.2023.13792
  56. Makhloufi, L., Azbiya Yaacob, N., Laghouag, A. A., et al. (2021). Effect of IT capability and intangible IT resources on sustainable competitive advantage: Exploring moderating and mediating effect of IT flexibility and core competency. Cogent Business & Management, 8(1), 1935665. https://doi.org/10.1080/23311975.2021.1935665
  57. Marco-Lajara, B., Úbeda-García, M., Zaragoza-Sáez, P., et al. (2023). The impact of international experience on firm economic performance. The double mediating effect of green knowledge acquisition & eco-innovation. Journal of Business Research, 157, 113602. https://doi.org/10.1016/j.jbusres.2022.113602
  58. Martínez-Falcó, J., Marco-Lajara, B., Zaragoza-Sáez, P., and Sánchez-García, E. (2024). The effect of knowledge management on sustainable performance: evidence from the Spanish wine industry. Knowledge Management Research and Practice, 22(3), 298–313. https://doi.org/10.1080/14778238.2023.2218045
  59. Meissner, D., and Kotsemir, M. (2015). Conceptualizing the innovation process towards the ‘active innovation paradigm’—trends and outlook. Journal of Innovation and Entrepreneurship, 5(1). https://doi.org/10.1186/s13731-016-0042-z
  60. Nasrollahi, M., Reza Fathi, M., and Sheikh Hassani, N. (2020). Eco-innovation and cleaner production as sustainable competitive advantage antecedents: the mediating role of green performance. In Int. J. Business Innovation and Research (Vol. 22, Issue 3).
  61. Nunnally J. C., and Bernstein, I. H. (1994). Psychometric theory (3rd ed.). McGraw Hill, New York, Polger S. Thomas SA 2000 Introduction to research in the health sciences.
  62. OCDE. (2009). Sustainable Manufacturing and Eco-innovation: Towards a Green Economy. Available online: https://www.oecd.org/env/consumption-innovation/42957785.pdf
  63. Ong, T. S., Lee, A. S., Teh, B. H., et al. (2019). Environmental innovation, environmental performance and financial performance: Evidence from Malaysian environmental proactive firms. Sustainability,11(12), 3494. https://doi.org/10.3390/su11123494
  64. Organization for Economic Co-operation and Development (OECD). (2016). Patent search strategies for the identification of selected environment-related technologies (ENV-TECH). OECD Environment Directorate. Available online: https://www.oecd.org/environment/consumption-innovation/ENV-tech%20search%20strategies,%20version%20for%20OECDstat%20(2016)
  65. Palafox, K. H. O. (2019). Sustentabilidad como estrategia competitiva en la gerencia de pequeñas y medianas empresas en México. Revista venezolana de gerencia, 24(88), 992-104.
  66. Pereira, Á., and Vence, X. (2012). Key business factors for eco-innovation: An overview of recent firm-level empirical studies. Cuadernos de Gestión, 12, 73-103.
  67. Porter M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press: New York.
  68. Rehman, S. U., Kraus, S., Shah, S. A., et al. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting and Social Change, 163, 120481. https://doi.org/10.1016/j.techfore.2020.120481
  69. Rodríguez, M. N., and Ruiz, M. A. (2008). Attenuation of the asymmetry and kurtosis of the observed scores by means of variable transformations: Impact on the factorial structure. Psicológica, 29, 205-227.
  70. Rovira, S., Patiño, J., and Schaper, M. (2017). Eco-innovation and green production. A policy review of Latin America and the Caribbean Project Document (Spanish). CEPAL. [Availablle online: https://repositorio.cepal.org/handle/11362/40968.
  71. Sahoo, S., Kumar, A., and Upadhyay, A. (2023). How do green knowledge management and green technology innovation impact corporate environmental performance? Understanding the role of green knowledge acquisition. Business Strategy and the Environment, 32(1), 551-569. https://doi.org/10.1002/bse.3160
  72. Setyawati, H., Suroso, A., Adi, P., et al. (2020). Linking green marketing strategy, religiosity, and firm performance: evidence form Indonesian SMEs. Management Science Letters, 10(11), 2617-2624. https://doi.org/10.5267/j.msl.2020.3.031
  73. Shin, S., and Cho, M. (2022). Green supply chain management implemented by suppliers as drivers for smes environmental growth with a focus on the restaurant industry. Sustainability, 14(6), 3515. https://doi.org/10.3390/su14063515
  74. Simmou, W., Govindan, K., Sameer, I., et al. (2023). Doing good to be green and live clean! Linking corporate social responsibility strategy, green innovation, and environmental performance: Evidence from Maldivian and Moroccan small and medium-sized enterprises. Journal of Cleaner Production, 384, 135265. https://doi.org/10.1016/j.jclepro.2022.135265
  75. Singh, M. P., and Chakraborty, A. (2021). Eco-innovation and sustainability performance: an empirical study on Indian manufacturing SMEs. World Review of Entrepreneurship, Management and Sustainable Development, 17(4), 497-512. https://doi.org/10.1504/wremsd.2021.116666
  76. Singh, S. K., Del Giudice, M., Chiappetta Jabbour, C. J., et al. (2022). Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities. Business Strategy and the Environment, 31(1), 500–514. https://doi.org/10.1002/bse.2906
  77. Tan, Q., Liu, Z., and Geng, P. (2021). Family involvement, family member composition and firm innovation. China Journal of Accounting Research, 14(1), 43–61. https://doi.org/10.1016/j.cjar.2020.12.003
  78. Tjahjadi, B., Soewarno, N., Hariyati, H., et al. (2020). The role of green innovation between green market orientation and business performance: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 173. https://doi.org/10.3390/joitmc6040173
  79. Tribaldos, T., and Kortetmäki, T. (2022). Just transition principles and criteria for food systems and beyond. Environmental Innovation and Societal Transitions, 43, 244-256.
  80. Uddin, M. (2021). Exploring Environmental Performance and the Competitive Advantage of Manufacturing Firms: A Green Supply Chain Management Perspective. International Journal of Economics & Management, 15(2), 219-239.
  81. UNEP. (2010). United Nations Environment Program - environment for development (UNEP, Ed.; Vol. 2016). UNEP. http://www.unep.org
  82. UNEP. (2023). Eco-innovation. UNEP - UN Environment Programme. Available online: https://www.unep.org/explore-topics/resource-efficiency/what-we-do/responsible-industry/eco-innovation
  83. UNIDO (United Nations Industrial Development Organization). (2009). A greener footprint for industry Opportunities and challenges of sustainable industrial development. Published by UNIDO.
  84. Vence, X., and Pereira, Á. (2019). Eco-innovation and Circular Business Models as drivers for a circular economy. Contaduría y Administración, 64(1), 1–19. https://doi.org/10.22201/fca.24488410e.2019.1806
  85. Wang, H., Khan, M. A. S., Anwar, F., et al. (2021). Green innovation practices and its impacts on environmental and organizational performance. Frontiers in Psychology, 11, 553625. https://doi.org/10.3389/fpsyg.2020.553625
  86. Weng, H. H., Chen, J. S., and Chen, P. C. (2015). Effects of green innovation on environmental and corporate performance: A stakeholder perspective. Sustainability, 7(5), 4997-5026. https://doi.org/10.3390/su7054997
  87. Wu, S., Wu, L., and Zhao, X. (2022). Impact of the green credit policy on external financing, economic growth and energy consumption of the manufacturing industry. Chinese Journal of Population, Resources and Environment, 20(1), 59-68. https://doi.org/10.1016/j.cjpre.2022.03.007
  88. Wu, S., Zhou, X., and Zhu, Q. (2023). Green credit and enterprise environmental and economic performance: The mediating role of eco-innovation. Journal of Cleaner Production, 382, 135248. https://doi.org/10.1016/j.jclepro.2022.135248
  89. Xavier, A. F., Naveiro, R. M., Aoussat, A., and Reyes, T. (2017). Systematic literature review of eco-innovation models: Opportunities and recommendations for future research. In Journal of Cleaner Production (Vol. 149, pp. 1278–1302). Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2017.02.145
  90. Yadav, P. L., Han, S. H., and Kim, H. (2017). Sustaining competitive advantage through corporate environmental performance. Business Strategy and the Environment, 26(3), 345-357. https://doi.org/10.1002/bse.1921
  91. Ying, Q., Hassan, H., and Ahmad, H. (2019). The role of a manager’s intangible capabilities in resource acquisition and sustainable competitive performance. Sustainability, 11(2), 527. https://doi.org/10.3390/su11020527
  92. Yurdakul, M., and Kazan, H. (2020). Effects of eco-innovation on economic and environmental performance: Evidence from Turkey’s manufacturing companies. Sustainability, 12(8), 3167. https://doi.org/10.3390/su12083167
  93. Zabaleta-de Armas, M., Brito-Carrillo, L. E., and Garzón-Castrillón, M. A. (2020). Methodology for estimating and evaluating a knowledge management model using structural equations (Spanish). Orinoquia, 24(1), 94-110. https://doi.org/10.22579/20112629.595
  94. Zulkiffli, S.N.A., Zaidi, N.F.Z., Padlee, S.F., et al. (2022). Eco-Innovation Capabilities and Sustainable Business Performance during the COVID-19 Pandemic. Sustainability, 14(13), 7525. https://doi.org/10.3390/su14137525


DOI: https://doi.org/10.24294/jipd7331

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 María del Carmen Martínez-Serna, Javier Eduardo Vega-Martínez, María del Carmen Bautista-Sánchez, Gabriela Citlalli López-Torres

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.