IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i8p3167-d345478.html
   My bibliography  Save this article

Effects of Eco-Innovation on Economic and Environmental Performance: Evidence from Turkey’s Manufacturing Companies

Author

Listed:
  • Melek Yurdakul

    (Faculty of Economics, Administrative and Social Sciences, International Trade and Finance, Istanbul Gedik University, Istanbul 34876, Turkey)

  • Halim Kazan

    (Faculty of Economics, Business Management, Istanbul University, Istanbul 34116, Turkey)

Abstract

The concept of eco-innovation has begun to be considered as a solution to preventing environmental damage, especially since the 1990s. Eco-innovation is expected to reduce amounts of waste, air pollution, and material resource usage. However, the effect of eco-innovation on environmental and financial performance has received limited attention. This paper seeks to fill this gap by studying the effect of eco-innovation on environmental and financial performance. In order to do so, data were obtained by collecting surveys completed by 219 manufacturing companies in Turkey. By using structural equation modeling, we found that eco-innovation has a direct effect on pollution prevention, resource saving and recycling; furthermore, it has an indirect positive effect on cost reduction and thus on economic performance. The findings suggest that decision-makers should adopt eco-innovation due to its cost advantage and pollution prevention potential.

Suggested Citation

  • Melek Yurdakul & Halim Kazan, 2020. "Effects of Eco-Innovation on Economic and Environmental Performance: Evidence from Turkey’s Manufacturing Companies," Sustainability, MDPI, vol. 12(8), pages 1-22, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3167-:d:345478
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/8/3167/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/8/3167/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    2. Valeria Costantini & Francesco Crespi & Giovanni Marin & Elena Paglialunga, 2016. "Eco-innovation, sustainable supply chains and environmental performance in European industries," LEM Papers Series 2016/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    4. María Rodríguez-García & María Guijarro-García & Agustín Carrilero-Castillo, 2019. "An Overview of Ecopreneurship, Eco-Innovation, and the Ecological Sector," Sustainability, MDPI, vol. 11(10), pages 1-16, May.
    5. Manuel Frondel & Jens Horbach & Klaus Rennings, 2007. "End‐of‐pipe or cleaner production? An empirical comparison of environmental innovation decisions across OECD countries," Business Strategy and the Environment, Wiley Blackwell, vol. 16(8), pages 571-584, December.
    6. Rennings, Klaus & Ziegler, Andreas & Ankele, Kathrin & Hoffmann, Esther, 2006. "The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance," Ecological Economics, Elsevier, vol. 57(1), pages 45-59, April.
    7. Klaus Rennings & Christian Rammer, 2011. "The Impact of Regulation-Driven Environmental Innovation on Innovation Success and Firm Performance," Industry and Innovation, Taylor & Francis Journals, vol. 18(3), pages 255-283.
    8. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    9. ., 2017. "A general theory of infrastructure and economic development," Chapters, in: Time, Space and Capital, chapter 8, pages 158-173, Edward Elgar Publishing.
    10. ., 2017. "A General Theory of Economic Development," Chapters, in: A General Theory of Economic Development, chapter 7, pages 115-150, Edward Elgar Publishing.
    11. 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.
    12. Paul Ekins, 2010. "Eco-innovation for environmental sustainability: concepts, progress and policies," International Economics and Economic Policy, Springer, vol. 7(2), pages 267-290, August.
    13. Doran, Justin & Ryan, Geraldine, 2012. "Regulation and Firm Perception, Eco-Innovation and Firm Performance," MPRA Paper 44578, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xu, Jiaqi & Zhao, Jingfeng & She, Shengxiang & Liu, Wen, 2022. "Green growth, natural resources and sustainable development: Evidence from BRICS economies," Resources Policy, Elsevier, vol. 79(C).
    2. Mulyaningsih Mulyaningsih & Ade Setiadi & Iwan Setiawa & Susniwati Susniwati & Erna Erna & Teddy Hikmat Fauzi, 2024. "Energy Efficiency Measures in Public Sector: An Empirical Analysis of the Determinants of Adoption of Low-cost Energy Efficiency," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 624-631, March.
    3. Liguo, Xin & Ahmad, Manzoor & Khattak, Shoukat Iqbal, 2022. "Impact of innovation in marine energy generation, distribution, or transmission-related technologies on carbon dioxide emissions in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    4. Cheng Jin & Asif Razzaq & Faiza Saleem & Avik Sinha, 2022. "Asymmetric effects of eco-innovation and human capital development in realizing environmental sustainability in China: evidence from quantile ARDL framework," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 4947-4970, December.
    5. Doğan, Buhari & Ghosh, Sudeshna & Hoang, Dung Phuong & Chu, Lan Khanh, 2022. "Are economic complexity and eco-innovation mutually exclusive to control energy demand and environmental quality in E7 and G7 countries?," Technology in Society, Elsevier, vol. 68(C).
    6. Siti Nur Atikah Zulkiffli & Nur Farah Zafira Zaidi & Siti Falindah Padlee & Najahul Kamilah Aminy Sukri, 2022. "Eco-Innovation Capabilities and Sustainable Business Performance during the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(13), pages 1-17, June.
    7. Yamashita, Andre S. & Fujii, Hidemichi, 2022. "Trend and priority change of climate change mitigation technology in the global mining sector," Resources Policy, Elsevier, vol. 78(C).
    8. Ahmad, Najid & Youjin, Liu & Žiković, Saša & Belyaeva, Zhanna, 2023. "The effects of technological innovation on sustainable development and environmental degradation: Evidence from China," Technology in Society, Elsevier, vol. 72(C).
    9. Alice Falchi & Gilles Grolleau & Naoufel Mzoughi & Sanja Pekovic, 2023. "Eco-innovations and Job Satisfaction: A Moderated Mediation Approach," Journal of Innovation Economics, De Boeck Université, vol. 0(3), pages 185-199.
    10. Anna Misztal & Magdalena Kowalska, 2024. "Factors of green entrepreneurship in selected emerging markets in the European Union," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28269-28292, November.
    11. Zhang, Jingshen & Zhou, Xinzhu & Bai, Rong & Dong, Haoyang & Tang, Tingting & Wang, Zeyu & Yang, Ya & Huang, Feng, 2024. "Impact of environmental supervision reform on green innovation in mineral enterprises," Resources Policy, Elsevier, vol. 88(C).
    12. Jacek Wysocki, 2021. "Innovative Green Initiatives in the Manufacturing SME Sector in Poland," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    13. Guido Wiyendi & Suyanto Suyanto & Cynthia Yohanna Kartikasari, 2024. "Development of Ecological Patent in Southeast Asian Countries: Linkages between Economic Growth, Environment and Innovation," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 205-212, November.
    14. Bireswar Dutta & Hsin-Ginn Hwang, 2021. "Consumers Purchase Intentions of Green Electric Vehicles: The Influence of Consumers Technological and Environmental Considerations," Sustainability, MDPI, vol. 13(21), pages 1-23, October.
    15. Aldieri, Luigi & Makkonen, Teemu & Vinci, Concetto Paolo, 2022. "Do research and development and environmental knowledge spillovers facilitate meeting sustainable development goals for resource efficiency?," Resources Policy, Elsevier, vol. 76(C).
    16. Larbi-Siaw, Otu & Xuhua, Hu & Owusu, Ebenezer & Owusu-Agyeman, Abigail & Fulgence, Brou Ettien & Frimpong, Samuel Akwasi, 2022. "Eco-innovation, sustainable business performance and market turbulence moderation in emerging economies," Technology in Society, Elsevier, vol. 68(C).
    17. Pooja Kansra & Sumit Oberoi & Nripendra Singh & Hayeon (Hailey) Choi, 2024. "Role of Innovation, Policy, Social Media, and Environmental Munificence for Sustainable Ecotourism Development in Punjab, India," Sustainability, MDPI, vol. 16(21), pages 1-15, October.
    18. Joaquin Sanchez-Planelles & Marival Segarra-Oña & Angel Peiro-Signes, 2020. "Building a Theoretical Framework for Corporate Sustainability," Sustainability, MDPI, vol. 13(1), pages 1-21, December.
    19. Jacek Wysocki & Pawel Dec, 2021. "Pro-Ecological Initiatives and Profitability of Manufacturing Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 57-74.
    20. Paulius Šūmakaris & Renata Korsakienė & Deniss Ščeulovs, 2021. "Determinants of Energy Efficient Innovation: A Systematic Literature Review," Energies, MDPI, vol. 14(22), pages 1-20, November.
    21. 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.
    22. Zhao, Xinlu & Adebayo, Tomiwa Sunday & Kong, Xianli & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Relating energy innovations and natural resources as determinants of environmental sustainability: The role of globalization in G7 countries," Resources Policy, Elsevier, vol. 79(C).
    23. Shao, Shuai & Razzaq, Asif, 2022. "Does composite fiscal decentralization reduce trade-adjusted resource consumption through institutional governance, human capital, and infrastructure development?," Resources Policy, Elsevier, vol. 79(C).
    24. Barıs Aksu & Gulsen Akman, 2024. "How Eco-innovation Determinants and Eco-innovation Strategy Influences Sustainability Performance of SMEs? Mediating Role of Eco-innovation Strategy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9368-9392, June.
    25. Lin, Shu & Yuan, Ying, 2023. "China's resources curse hypothesis: Evaluating the role of green innovation and green growth," Resources Policy, Elsevier, vol. 80(C).

    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. 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.
    2. Ghisetti, Claudia & Pontoni, Federico, 2015. "Investigating policy and R&D effects on environmental innovation: A meta-analysis," Ecological Economics, Elsevier, vol. 118(C), pages 57-66.
    3. Joana Costa, 2021. "Carrots or Sticks: Which Policies Matter the Most in Sustainable Resource Management?," Resources, MDPI, vol. 10(2), pages 1-21, February.
    4. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    5. Sanni, Maruf, 2018. "Drivers of eco-innovation in the manufacturing sector of Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 303-314.
    6. 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.
    7. Alexandra Rese & Anke Kutschke & Daniel Baier, 2016. "Analyzing The Relative Influence Of Supply Side, Demand Side And Regulatory Factors On The Success Of Collaborative Energy Innovation Projects," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-43, February.
    8. Giovanni Ferri & Marco Pini, 2019. "Environmental vs. Social Responsibility in the Firm. Evidence from Italy," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    9. 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.
    10. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    11. 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.
    12. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2021. "Firms’ growth, green gazelles and eco-innovation: evidence from a sample of European firms," Small Business Economics, Springer, vol. 56(4), pages 1721-1738, April.
    13. Qiong Yao & Suzhen Zeng & Shibin Sheng & Shiyuan Gong, 2021. "Green innovation and brand equity: moderating effects of industrial institutions," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 573-602, June.
    14. Brian Chi-ang Lin & Siqi Zheng & Nicolò Barbieri & Claudia Ghisetti & Marianna Gilli & Giovanni Marin & Francesco Nicolli, 2016. "A Survey Of The Literature On Environmental Innovation Based On Main Path Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 596-623, July.
    15. Abdelfeteh Bitat, 2018. "Environmental regulation and eco-innovation: the Porter hypothesis refined," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(3), pages 299-321, September.
    16. Triguero, Angela & Moreno-Mondéjar, Lourdes & Davia, María A., 2013. "Drivers of different types of eco-innovation in European SMEs," Ecological Economics, Elsevier, vol. 92(C), pages 25-33.
    17. Siedschlag, Iulia & Meneto, Stefano & Tong Koecklin, Manuel, 2019. "Determinants of green innovations: Firm-level evidence," Papers WP643, Economic and Social Research Institute (ESRI).
    18. 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.
    19. Pilar Portillo-Tarragona & Sabina Scarpellini & Jose M. Moneva & Jesus Valero-Gil & Alfonso Aranda-Usón, 2018. "Classification and Measurement of the Firms’ Resources and Capabilities Applied to Eco-Innovation Projects from a Resource-Based View Perspective," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    20. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond the Inducement in Climate Change: Do Environmental Performances Spur Enrivornmental Technologies? A Regional Analysis of Cross-Sectoral Differences," Working Papers 2013112, University of Ferrara, Department of Economics.

    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:gam:jsusta:v:12:y:2020:i:8:p:3167-:d:345478. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.