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The Effect of Sustainability as Innovation Objectives on Innovation Efficiency

Author

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  • Jaeho Shin

    (College of Business Administration, Seoul National University, Seoul 08826, Korea
    These authors contributed equally to this work.)

  • Changhee Kim

    (College of Business Administration, Incheon National University, Incheon 22012, Korea
    These authors contributed equally to this work.)

  • Hongsuk Yang

    (College of Business Administration, Seoul National University, Seoul 08826, Korea)

Abstract

Though sustainability exists as major objective of pursuing innovation, the effect of it on innovation performance is still unanswered. While the outcome of innovation should consider both input and output, moreover, studies on sustainable innovation are yet to consider the overall efficiency, but rather the performance itself. To fill the gap between the effect of sustainability as the objective of innovation and its innovation performance, and to bridge the hole between the outcome of sustainable innovation and its efficiency, we analyze the relationship between sustainability as innovation objective and innovation efficiency. We use 441 manufacturing companies in Korea from 2016 KIS data, and perform the data envelopment analysis (DEA) method to calculate efficiency score of each firm and tobit regression analysis to investigate the effect of sustainability as an objective of innovation on innovation efficiency. The results show that the objective of ‘environmental improvement’ negatively affects innovation efficiency, while ‘safety improvement’ positively affects the efficiency. On the contrary, the effect of ‘material and energy reduction’ as an objective of innovation on innovation efficiency is not verified. The implications, limitations, and guidelines for future research are presented.

Suggested Citation

  • Jaeho Shin & Changhee Kim & Hongsuk Yang, 2018. "The Effect of Sustainability as Innovation Objectives on Innovation Efficiency," Sustainability, MDPI, vol. 10(6), pages 1-13, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:1966-:d:151972
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    3. Chengde You & Shoukat Iqbal Khattak & Manzoor Ahmad, 2024. "Impact of Innovation in Solar Photovoltaic Energy Generation, Distribution, or Transmission-Related Technologies on Carbon Dioxide Emissions in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3600-3634, March.
    4. Bresciani, Stefano & Puertas, Rosa & Ferraris, Alberto & Santoro, Gabriele, 2021. "Innovation, environmental sustainability and economic development: DEA-Bootstrap and multilevel analysis to compare two regions," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    5. Abbas Mardani & Dalia Streimikiene & Tomas Balezentis & Muhamad Zameri Mat Saman & Khalil Md Nor & Seyed Meysam Khoshnava, 2018. "Data Envelopment Analysis in Energy and Environmental Economics: An Overview of the State-of-the-Art and Recent Development Trends," Energies, MDPI, vol. 11(8), pages 1-21, August.
    6. Kai Xu & Lawrence Loh & Qiang Chen, 2020. "Sustainable Innovation Governance: An Analysis of Regional Innovation with a Super Efficiency Slack-Based Measure Model," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
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    8. Jaeho Shin & Changhee Kim & Hongsuk Yang, 2019. "Does Reduction of Material and Energy Consumption Affect to Innovation Efficiency? The Case of Manufacturing Industry in South Korea," Energies, MDPI, vol. 12(6), pages 1-14, March.
    9. Zhicheng Duan & Tingting Tang, 2022. "Quantitative Simulation and Verification of the Coordination Curves between Sustainable Development and Green Innovation Efficiency: From the Perspective of Urban Agglomerations Development," Sustainability, MDPI, vol. 14(24), pages 1-22, December.
    10. Atta Mills, Ebenezer Fiifi Emire & Zeng, Kailin & Fangbiao, Liu & Fangyan, Li, 2021. "Modeling innovation efficiency, its micro-level drivers, and its impact on stock returns," Chaos, Solitons & Fractals, Elsevier, vol. 152(C).
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    12. Marko M. Mihić & Zorica A. Dodevska & Marija Lj. Todorović & Vladimir Lj. Obradović & Dejan Č. Petrović, 2018. "Reducing Risks in Energy Innovation Projects: Complexity Theory Perspective," Sustainability, MDPI, vol. 10(9), pages 1-24, August.
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