IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v28y2019i2p316-326.html
   My bibliography  Save this article

Innovation intensity, creativity enhancement, and eco‐innovation strategy: The roles of customer demand and environmental regulation

Author

Listed:
  • Yi‐Chuan Liao
  • Kuen‐Hung Tsai

Abstract

This study develops a contingency framework to investigate how and when innovation intensity and creativity enhancement affect a firm's eco‐innovation strategy by drawing upon the perspectives of the resource‐based view and stakeholder theory. This investigation aims to explore whether firms with high innovation intensity and creativity enhancement really pursue eco‐innovation strategy. Our examination is based on a sample of 2,126 manufacturing firms. By using a hierarchical regression, the results reveal that the effects of innovation intensity and creativity enhancement on eco‐innovation strategy depend on customer demand and environmental regulation. Specifically, customer demand positively moderates the effects of innovation intensity and creativity enhancement on eco‐innovation strategy, whereas existing regulation has a weaker effect on the relationship between innovation activities and eco‐innovation strategy than that of anticipated regulation.

Suggested Citation

  • Yi‐Chuan Liao & Kuen‐Hung Tsai, 2019. "Innovation intensity, creativity enhancement, and eco‐innovation strategy: The roles of customer demand and environmental regulation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 316-326, February.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:2:p:316-326
    DOI: 10.1002/bse.2232
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2232
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.2232?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    2. Mark Smith & Jo Crotty, 2008. "Environmental regulation and innovation driving ecological design in the UK automotive industry," Business Strategy and the Environment, Wiley Blackwell, vol. 17(6), pages 341-349, September.
    3. Paul Lanoie, 2008. "When And Why Does It Pay To Be Green?," CIRANO Papers 2008n-02a, CIRANO.
    4. Ghisetti, Claudia & Marzucchi, Alberto & Montresor, Sandro, 2015. "The open eco-innovation mode. An empirical investigation of eleven European countries," Research Policy, Elsevier, vol. 44(5), pages 1080-1093.
    5. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    6. Philip R. Walsh & Rachel Dodds, 2017. "Measuring the Choice of Environmental Sustainability Strategies in Creating a Competitive Advantage," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 672-687, July.
    7. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    8. Eiadat, Yousef & Kelly, Aidan & Roche, Frank & Eyadat, Hussein, 2008. "Green and competitive? An empirical test of the mediating role of environmental innovation strategy," Journal of World Business, Elsevier, vol. 43(2), pages 131-145, March.
    9. Robert Huber & Bernhard Hirsch, 2017. "Behavioral Effects of Sustainability‐Oriented Incentive Systems," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 163-181, February.
    10. Suk Choi & Christopher Williams, 2014. "The impact of innovation intensity, scope, and spillovers on sales growth in Chinese firms," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 25-46, March.
    11. Madhu Khanna & George Deltas & Donna Harrington, 2009. "Adoption of Pollution Prevention Techniques: The Role of Management Systems and Regulatory Pressures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(1), pages 85-106, September.
    12. Henri Servaes & Ane Tamayo, 2013. "The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness," Management Science, INFORMS, vol. 59(5), pages 1045-1061, May.
    13. David G Hyatt & Nicholas Berente, 2017. "Substantive or Symbolic Environmental Strategies? Effects of External and Internal Normative Stakeholder Pressures," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1212-1234, December.
    14. Henry Mintzberg, 1978. "Patterns in Strategy Formation," Management Science, INFORMS, vol. 24(9), pages 934-948, May.
    15. De Marchi, Valentina, 2012. "Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 41(3), pages 614-623.
    16. Kammerer, Daniel, 2009. "The effects of customer benefit and regulation on environmental product innovation.: Empirical evidence from appliance manufacturers in Germany," Ecological Economics, Elsevier, vol. 68(8-9), pages 2285-2295, June.
    17. Kjell Mårtensson & Karin Westerberg, 2016. "Corporate Environmental Strategies Towards Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 25(1), pages 1-9, January.
    18. Jennifer Goodman & Angelina Korsunova & Minna Halme, 2017. "Our Collaborative Future: Activities and Roles of Stakeholders in Sustainability‐Oriented Innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 731-753, September.
    19. Xiaoyang Li & Yue M. Zhou, 2017. "Offshoring Pollution while Offshoring Production?," Strategic Management Journal, Wiley Blackwell, vol. 38(11), pages 2310-2329, November.
    20. Yu-Shan Chen, 2010. "The Drivers of Green Brand Equity: Green Brand Image, Green Satisfaction, and Green Trust," Journal of Business Ethics, Springer, vol. 93(2), pages 307-319, May.
    21. Rosa Maria Dangelico, 2016. "Green Product Innovation: Where we are and Where we are Going," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 560-576, December.
    22. Rosa Maria Dangelico & Pierpaolo Pontrandolfo, 2015. "Being ‘Green and Competitive’: The Impact of Environmental Actions and Collaborations on Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 413-430, September.
    23. Krittinee Nuttavuthisit & John Thøgersen, 2017. "The Importance of Consumer Trust for the Emergence of a Market for Green Products: The Case of Organic Food," Journal of Business Ethics, Springer, vol. 140(2), pages 323-337, January.
    24. May, Douglas R. & Flannery, Brenda L., 1995. "Cutting waste with employee involvement teams," Business Horizons, Elsevier, vol. 38(5), pages 28-38.
    25. Javier González‐Benito & Óscar González‐Benito, 2006. "A review of determinant factors of environmental proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 15(2), pages 87-102, March.
    26. Elisha Temminck & Kathryn Mearns & Laura Fruhen, 2015. "Motivating Employees towards Sustainable Behaviour," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 402-412, September.
    27. Rosa Maria Dangelico, 2017. "What Drives Green Product Development and How do Different Antecedents Affect Market Performance? A Survey of Italian Companies with Eco‐Labels," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1144-1161, December.
    28. Friederike Neugebauer & Frank Figge & Tobias Hahn, 2016. "Planned or Emergent Strategy Making? Exploring the Formation of Corporate Sustainability Strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 25(5), pages 323-336, July.
    29. Marcus Wagner, 2009. "National culture, regulation and country interaction effects on the association of environmental management systems with environmentally beneficial innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 18(2), pages 122-136, February.
    30. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    31. Forsman, Helena, 2011. "Innovation capacity and innovation development in small enterprises. A comparison between the manufacturing and service sectors," Research Policy, Elsevier, vol. 40(5), pages 739-750, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yi‐Chuan Liao & Kuen‐Hung Tsai, 2019. "Bridging market demand, proactivity, and technology competence with eco‐innovations: The moderating role of innovation openness," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 653-663, May.
    2. Kuen‐Hung Tsai & Yi‐Chuan Liao, 2017. "Innovation Capacity and the Implementation of Eco‐innovation: Toward a Contingency Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 1000-1013, November.
    3. Jason Li-Ying & Caroline Mothe & Uyen Nguyen-Thi, 2018. "Linking forms of inbound open innovation to a driver-based typology of environmental innovation: Evidence from French manufacturing firms," Post-Print hal-01695525, HAL.
    4. Justin Doran & Geraldine Ryan, 2016. "The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 102-119, February.
    5. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    6. Feng Zhang & Lei Zhu, 2019. "Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1012-1026, September.
    7. Eduardo Duque‐Grisales & Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas & Encarnación García‐Sánchez, 2020. "Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3286-3302, December.
    8. Enrique Acebo & José‐Ángel Miguel‐Dávila & Mariano Nieto, 2021. "External stakeholder engagement: Complementary and substitutive effects on firms' eco‐innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2671-2687, July.
    9. Peter S. Hofman & Constantin Blome & Martin C. Schleper & Nachiappan Subramanian, 2020. "Supply chain collaboration and eco‐innovations: An institutional perspective from China," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2734-2754, September.
    10. Lorenzo Ardito & Rosa Maria Dangelico, 2018. "Firm Environmental Performance under Scrutiny: The Role of Strategic and Organizational Orientations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 426-440, July.
    11. Li-Ying, Jason & Mothe, Caroline & Nguyen, Thi Thuc Uyen, 2018. "Linking forms of inbound open innovation to a driver-based typology of environmental innovation: Evidence from French manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 51-63.
    12. Lisa Melander, 2017. "Achieving Sustainable Development by Collaborating in Green Product Innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1095-1109, December.
    13. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    14. Pinget, Amandine, 2016. "Spécificités des déterminants des innovations environnementales : une approche appliquée aux PME [Specificities of determinants for environmental innovation : an approach applied to SMEs]," MPRA Paper 80108, University Library of Munich, Germany.
    15. Chiara Pellegrini & Eleonora Annunziata & Francesco Rizzi & Marco Frey, 2019. "The role of networks and sustainable intrapreneurship as interactive drivers catalyzing the adoption of sustainable innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(5), pages 1026-1048, September.
    16. Kuen‐Hung Tsai & Yi‐Chuan Liao, 2017. "Sustainability Strategy and Eco‐Innovation: A Moderation Model," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 426-437, May.
    17. Zhongju Liao, 2018. "Corporate culture, environmental innovation and financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1368-1375, December.
    18. Davide Antonioli & Grazia Cecere & Massimiliano Mazzanti, 2018. "Information communication technologies and environmental innovations in firms: joint adoptions and productivity effects," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(11), pages 1905-1933, September.
    19. Caroline Mothe & Uyen T. Nguyen-Thi & Ángela Triguero, 2018. "Innovative products and services with environmental benefits: design of search strategies for external knowledge and absorptive capacity," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(11), pages 1934-1954, September.
    20. Peiró-Signes, Ángel & Segarra-Oña, Marival & Trull-Domínguez, Óscar & Sánchez-Planelles, Joaquín, 2022. "Exposing the ideal combination of endogenous–exogenous drivers for companies’ ecoinnovative orientation: Results from machine-learning methods," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:28:y:2019:i:2:p:316-326. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.