GREEN INNOVATION AND FIRM PERFORMANCE: THE ECOLOGICAL MODERNIZATION PERSPECTIVE
DOI:
https://doi.org/10.32890/jtom2017.12.1.3Keywords:
Green innovation, ecological modernization, sustainability, PLS, Malaysian manufacturing firms, firm performanceAbstract
Green innovation is becoming an essential business strategy in the 21st century as it brings sustainable environment and economic prosperity hand in hand. Consequently, the impact of green innovation on firm performance has drawn enormous attention among the scholars for the past few decades, aiming at empirically justify the positive implications of being green in business. However, the analysis from the ecological modernization perspective remains limited, although the focus on preventive approach to achieve environmental and economic improvement is the central argument of this theoretical lens. This study tackles the above issue by examining the performance outcomes of green innovation adoption in view of ecological modernization perspective. A quantitative, survey based study collected data from 130 Malaysian manufacturing firms, which was subsequently analyzed using SmartPLS 2.0. The findings generally corroborate the positive implications of green innovation on firm performance in the aspects of environment, economic and competitive advantage. Likewise, EM perspective fits in offering plausible insights of the findings, hence entails the alternative ground to be employed in other studies of the like.
Metrics
References
Chang, C. H. (2011). The Influence of Corporate Environmental Ethics on Competitive Advantage: The Mediation Role of Green Innovation. Journal of Business Ethics, 104, 361–370. doi: 10.1007/s10551-011-0914-x
Chen, Y. S. (2007). The Driver of Green Innovation and Green Image – Green Core Competence. Journal of Business Ethics, 81, 531–543. doi: 10.1007/s10551-007-9522-1
Chiou, T., Kai, H., Lettice, F., Ho, S., Chan, H. K., & Chung, S. H. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822–836. doi:10.1016/j.tre.2011.05.016
Chung, Y.-C., & Tsai, C.-H. (2007). The Effect of Green Design Activities on New Product Strategies and Performance: An Empirical Study among High-tech Companies. International Journal of Management, 24(2), 276-288.
Craig, J., & Dibrell, C. (2006). The Natural Environment, Innovation, and Firm Performance : A Comparative Study. Family Business Review, XIX(4), 275–288.
Dangelico, R. M., & Pujari, D. (2010). Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability. Journal of Business Ethics, 95, 471–486. doi: 10.1007/s10551-010-0434-0
DOE. (2012). Annual Report. Selangor.
Eiadat, Y., Kelly, A., Roche, F., & Eyadat, H. (2008). Green and competitive? An empirical test of the mediating role of environmental innovation strategy. Journal of World Business, 43, 131–145.
Elkington, J. (1998). Partnerships from Cannibals with Forks : The Triple Bottom Line of 21 st-Century Business. Environmental Quality Management, 8(1), 37–51. doi:10.1002/tqem.3310080106
Eltayeb, T. K. (2009). Adoption of green supply chain initiatives by ISO 14001 certified manufacturing firms in Malaysia: key drivers, outcomes, and moderating effects of relationship orientation Doctoral Thesis, Universiti Sains Malaysia, Penang.
Eltayeb, T. K., Zailani, S., & Filho, W. L. (2010). Green business among certified companies in Malaysia towards environmental sustainability: Benchmarking on the drivers, initiatives and outcomes. International Journal of Environmental Technology and Management, 12(1), 95–125.
EPU. (2015). The Malaysian Economy In Figures. Retrieved from http://www.epu.gov.my/meif2015
Er, A.C. (2007). A Quantitative Methodology to Test Ecological Modernization Theory in the Malaysian Context. Wageningen University.
Er, A. C., Mol, A. P. J., & Van Koppen, C. S. A. (Kris). (2012). Ecological modernization in selected Malaysian industrial sectors: political modernization and sector variations. Journal of Cleaner Production, 24, 66–75. doi:10.1016/j.jclepro.2011.11.042
Garcia, R., & Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: A literature review. Journal of Product Innovation Management, 19(2), 110-32.
Hair, J.F., Hult, G., Ringle, C., & Sarstedt, M. (2013). A primer on partial least squares structural equation modeling (PLS-SEM). California: Sage Publications, Inc.
Hart, S. L., & Ahuja, G. (1996). Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance. Business Strategy and the Environment, 5, 30-37.
Huber, J. (2008). Pioneer countries and the global diffusion of environmental innovations: Theses from the viewpoint of ecological modernisation theory. Global Environmental Change, 18(3), 360-367. doi: 10.1016/j.gloenvcha.2008.03.004
Jänicke, M. (2008). Ecological modernisation: new perspectives. Journal of Cleaner Production, 16(5), 557-565. doi: 10.1016/j.jclepro.2007.02.011
Klassen, R. D., & Whybank, D. C. (1999). The impact of environmental technologies on manufacturing performance. Academy of Management Journal 42(6), 599–615.
Lam, J., Hills, P., & Welford, R. (2005). Ecological modernisation, environmental innovation and competitiveness : the case of public transport in Hong Kong. International Journal of Innovation and Sustainable Development, 1, 103–126.
López-Gamero, M. D., Molina-AzorÃn, J. F., & Claver-Cortés, E. (2009). The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables. Journal of Environmental Management, 90(10), 3110-3121. doi: 10.1016/j.jenvman.2009.05.007
Menguc, B., Auh, S., & Ozanne, L. (2010). The interactive effect of internal and external factors on a proactive environmental strategy and its influence on a firm’s performance. Journal of Business Ethics, 94, 279–298. doi: 10.1007/s10551-009-0264-0
Milanez, B., & Bührs, T. (2007). Marrying strands of ecological modernisation: A proposed framework. Environmental Politics, 16(4), 565 – 583.
Mol, A. P. J. (2000). Ecological Modernization: industrial transformations and industrial reforms. In R. Redclift & G. Woodgate (Eds.), The International Handbook of Environmental Sociology (pp. 138–149). Chelterham: Edward Elgar Publishing.
Murphy, J., & Gouldson, A. (2000). Environmental policy and industrial innovation: integrating environmental and economy through ecological modernization. Geoforum, 31, 33–44.
Nishitani, K., Kaneko, S., Fujii, H., & Komatsu, S. (2012). Are firms’ voluntary environmental management activities beneficial for the environment and business? An empirical study focusing on Japanese manufacturing firms. Journal of Environmental Management, 105, 121–30. doi:10.1016/j.jenvman.2012.03.054
OECD (2008). Environmental Innovation and Global Markets, Paris: Organisation for Economic Coâ€operation and Development (OECD)
PEMANDU (2016). Retrieved Apr 29, 2016, from http://etp.pemandu.gov.my/Standards-@-Green_Label_Products.aspx
Porter, M. E., & Van der Linde, C. (1995). Green and competitive: Ending the stalemate. Harvard Business Review, 73 (5), 120-134.
Rennings, K. (2000). Redeï¬ning innovation: Eco-innovation research and the contribution from ecological economic. Ecological Economics, 32, 319–332.
Shrivastava, P. (1995). Environmental technologies and competitive advantage. Strategic Management Journal, 16, 183–200.
Sroufe, R. (2003). Effects of Environmental Management System on environmental management pactices and operations. Production and Operations Management, 12(3), 416-431.
Theyel, G. (2000). Management practices for environmental innovation and performance. International Journal of Operations & Production Management, 20(2), 249-266.
Tien, S.-W., Chung, Y.-C., & Tsai, C.-H. (2005). An empirical study on the correlation between environmental design implementation and business competitive advantages in Taiwan's industries. Technovation, 25(7), 783-794. doi: 10.1016/j.technovation.2004.01.004
Tukker, A., Ellen, G. J., & Eder, P. (2000). Eco-design: Strategies for dissemination to SMEs. Luxembourg: Institute for Prospective Technological Studies.
Watson, K., Klingenberg, B., Polito, T., & Geurts, T. G. (2004). Impact of environmental management system implementation on financial performance: A comparison of two corporate strategies. Management of Environmental Quality: An International Journal, 15(6), 622–628. doi:10.1108/14777830410560700
Zhu, Q., & Sarkis, J. (2007). The moderating effects of institutional pressures on emergent green supply chain practices and performance. International Journal of Production Research, 45(18-19), 4333–4355. doi:10.1080/00207540701440345
Zhu, Q., Sarkis, J., & Lai, K.-H. (2012). Green supply chain management innovation diffusion and its relationship to organizational improvement: An ecological modernization perspective. Journal of Engineering and Technology Management, 29, 168–185. doi: 10.1016/j.jengtecman.2011.09.012
Downloads
Published
How to Cite
Issue
Section
License
Disclaimer
The Journal of Technology and Operation Management (JTOM) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation. Articles published in the Journal of Technology and Operation Management (JTOM) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.