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Tracing the Reverse Relationship Among Environmental Benefits, Business Model Innovation, and Eco‐Innovation: Does Cooperation Matter?

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  • Viktor Prokop
  • Laura Carraresi
  • Agnieszka Karman
  • Fazal Ur Rehman
  • Martin Ibl

Abstract

This study investigates the direct and reverse relationships among environmental benefits, eco‐innovation, and business model innovation (BMI), emphasizing the role of national and foreign cooperation among firms. We employed a structural equation model using data from the 2014 European Community Innovation Survey (CIS), the most recent survey to include questions on firms' environmental activities and eco‐innovations. We studied 6827 firms from the Czech Republic (2363), Germany (3264), and Greece (1200). Findings confirm reverse relationships between eco‐innovation and BMI and between eco‐innovation and environmental benefits. This study challenges the notion that (foreign) cooperation positively impacts eco‐innovation, highlighting a paradox that warrants further investigation. Additionally, we emphasize the reliance of companies on cooperative partners for BMI. Our results underscore the need for a holistic approach to eco‐innovation in light of increasing global environmental challenges. Practical implications include heightened environmental awareness, adjustments to corporate business models, and enhanced cooperation within the analyzed countries.

Suggested Citation

  • Viktor Prokop & Laura Carraresi & Agnieszka Karman & Fazal Ur Rehman & Martin Ibl, 2025. "Tracing the Reverse Relationship Among Environmental Benefits, Business Model Innovation, and Eco‐Innovation: Does Cooperation Matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 34(2), pages 2378-2404, February.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:2:p:2378-2404
    DOI: 10.1002/bse.4084
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