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A Systematic Review of Eco-Innovation and Performance from the Resource-Based and Stakeholder Perspectives

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  • Russell Tatenda Munodawafa

    (Department of Management and Humanities, Universiti Teknologi PETRONAS, 32610 Seri Iskandar, Perak, Malaysia)

  • Satirenjit Kaur Johl

    (Department of Management and Humanities, Universiti Teknologi PETRONAS, 32610 Seri Iskandar, Perak, Malaysia)

Abstract

The growing concerns surrounding the precarious state of the biosphere have triggered organizations to develop and implement innovations that curb environmental degradation (eco-innovation). However, eco-innovation is a risky proposition for organizations and their stakeholders, due to uncertainty of outcome. Despite the high investment risk of eco-innovation, the literature that assesses eco-innovation outcomes from an organizational performance perspective is scant. Thus, this paper uses a systematic approach to review eco-innovation and performance literature. The eco-innovation and performance literature reviewed in this paper is sourced from the Scopus and Web of Science (WoS) scientific databases. Results from this systematic review suggest that the capital market stakeholder group—an essential stakeholder group—has received little attention in the eco-innovation and performance literature. This is alarming, as this stakeholder group is expected to act in the best interests of the organization—as well as the other stakeholders—especially during strategy formulation and implementation. This paper also finds that the resource-based view and stakeholder theory are frequently utilized in explaining eco-innovation. However, the natural resource-based view is least utilized, despite growing environmental pressures. A multi-theoretical perspective can help to overcome the limitations of one theory, as well as help to unearth additional organizational factors which could potentially catalyze the eco-innovation and performance relationship.

Suggested Citation

  • Russell Tatenda Munodawafa & Satirenjit Kaur Johl, 2019. "A Systematic Review of Eco-Innovation and Performance from the Resource-Based and Stakeholder Perspectives," Sustainability, MDPI, vol. 11(21), pages 1-23, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:6067-:d:282350
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    17. António Abreu, 2021. "Innovation Ecosystems: A Sustainability Perspective," Sustainability, MDPI, vol. 13(4), pages 1-3, February.
    18. Melek Yurdakul & Halim Kazan, 2024. "A Study on Determining the Eco-Innovation Dynamics in Turkey’s Manufacturing Companies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4912-4938, March.
    19. Rafik Abdesselam & Malia Kedjar & Patricia Renou-Maissant, 2024. "What are the drivers of eco-innovation? Empirical evidence from French start-ups," Post-Print hal-04304153, HAL.
    20. Seungyeon Moon & Heesang Lee, 2021. "Shaping a Circular Economy in the Digital TV Industry: Focusing on Ecopreneurship through the Lens of Dynamic Capability," Sustainability, MDPI, vol. 13(9), pages 1-41, April.

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