The ambiguous effects of eco-innovations: a systematic literature review

Bartoszczuk, P., & Karman, A. (2024). The ambiguous effects of eco-innovations: a systematic literature review . Economics and Environment, 87(4), 660, 1–23. https://doi.org/10.34659/eis.2023.87.4.660

Abstract

While eco-innovations can help organisations comply with external stakeholders' expectations, they can also lead to unwanted or unexpected effects. This paper aims to explore business management literature addressing the ambiguous effects of eco-innovation. The methods used included a systematic literature review (SLR) in the Scopus and WoS databases and bibliographic techniques. By critically analysing 53 papers, the study identifies four clusters where negative or ambiguous effects of eco-innovations appear: financial, environmental, social and operational performance. The results indicate that strategic eco‐innovation had a significantly adverse impact on corporate financing, caused a decrease in employment, and created tensions for employees. Moreover, the bearing of eco-managerial innovations (eco-design) on performance was not significant. We contribute to the literature by suggesting that eco-innovation does not always generate the expected benefits. What is more, different types of eco-innovation can generate contrasting effects for the organisation and may occur at different times.

https://doi.org/10.34659/eis.2023.87.4.660

PDF

References

Achmad Fauzi, S. F. W. G. N. A. (2019). Does Green Innovation Matter? A Study On Indonesia’s SMEs. Journal Management, 23(1), 100. https://doi.org/10.24912/jm.v23i1.447

Afum, E., Issau, K., Agyabeng-Mensah, Y., Baah, C., Dacosta, E., Essandoh, E., & Agyenim Boateng, E. (2023). The missing links of sustainable supply chain management and green radical product innovation between sustainable entrepreneurship orientation and sustainability performance. Journal of Engineering, Design and Technology, 21(1), 167-187. https://doi.org/10.1108/JEDT-05-2021-0267

Aibar-Guzmán, B., & Frías-Aceituno, J.-V. (2021). Is It Necessary to Centralize Power in the CEO to Ensure Environmental Innovation? Administrative Sciences, 11(1), 27. https://doi.org/10.3390/admsci11010027

Alyahya, M., Agag, G., Aliedan, M., & Abdelmoety, Z. H. (2023). A cross-cultural investigation of the relationship between eco-innovation and customers boycott behaviour. Journal of Retailing and Consumer Services, 72, 103271. https://doi.org/10.1016/j.jretconser.2023.103271

Anton, W. R. Q., Deltas, G., & Khanna, M. (2004). Incentives for environmental self-regulation and implications for environmental performance. Journal of Environmental Economics and Management, 48(1), 632-654. https://doi.org/10.1016/j.jeem.2003.06.003

Ar, I. M. (2012). The Impact of Green Product Innovation on Firm Performance and Competitive Capability: The Moderating Role of Managerial Environmental Concern. Procedia - Social and Behavioral Sciences, 62, 854-864. https://doi.org/10.1016/j.sbspro.2012.09.144

Arena, C., Michelon, G., & Trojanowski, G. (2018). Big Egos Can Be Green: A Study of CEO Hubris and Environmental Innovation. British Journal of Management, 29(2), 316-336. https://doi.org/10.1111/1467-8551.12250

Arenhardt, D., Battistella, L., & Grohmann, M. (2015). The influence of the green innovation in the search of competitive advantage of enterprises of the electrical and electronic brazilian sectors. International Journal of Innovation Management, 20, 1650004. https://doi.org/10.1142/S1363919616500043

Bales, M. E., Wright, D. N., Oxley, P. R., & Wheeler, T. R. (2020). Bibliometric visualization and analysis software: State of the art, workflows, and best practices. https://ecommons.cornell.edu/items/e3561c0c-1651-4632-abbd-3a22c62a874f

Barbieri, N., Ghisetti, C., Gilli, M., Marin, G., & Nicolli, F. (2016). A survey of the literature on environmental innovations based on main path analysis. Journal of Economic Surveys, 30(3), 596-623. https://doi.org/10.1111/joes.12149

Barriga Medina, H. R., Guevara, R., Campoverde, R. E., & Paredes-Aguirre, M. I. (2022). Eco-Innovation and Firm Performance: Evidence from South America. Sustainability, 14(15), 15. https://doi.org/10.3390/su14159579

Berrone, P., Fosfuri, A., Gelabert, L., & Gomez-Mejia, L. R. (2013). Necessity as the mother of ‘green’ inventions: Institutional pressures and environmental innovations. Strategic Management Journal, 34(8), 891-909. https://doi.org/10.1002/smj.2041

Boyack, K. W., Van Eck, N. J., Colavizza, G., & Waltman, L. (2018). Characterizing in-text citations in scientific articles: A large-scale analysis. Journal of Informetrics, 12(1), 59-73. https://doi.org/10.1016/j.joi.2017.11.005

Cai, W., & Li, G. (2018). The drivers of eco-innovation and its impact on performance: Evidence from China. Journal of Cleaner Production, 176, 110-118. https://doi.org/10.1016/j.jclepro.2017.12.109

Calandra, D. T., Wang, M., & Cane, A. (2023). Management of hydrogen mobility challenges: A systematic literature review. Journal of Cleaner Production, 410, 137305. https://doi.org/10.1016/j.jclepro.2023.137305

Caravella, S., & Crespi, F. (2022). On the growth impact of different eco-innovation business strategies. Economia Politica, 39(2), 657-683. https://doi.org/10.1007/s40888-022-00263-x

Cecere, G., Corrocher, N., Gossart, C., & Ozman, M. (2014). Lock-in and path dependence: An evolutionary approach to eco-innovations. Journal of Evolutionary Economics, 24(5), 1037-1065. https://doi.org/10.1007/s00191-014-0381-5

Chiou, T.-Y., Chan, H. K., Lettice, F., & Chung, S. H. (2011). The influence of greening the suppliers and green innovation on Taiwan's environmental performance and competitive advantage. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822-836. https://doi.org/10.1016/j.tre.2011.05.016

Coad, A., Nightingale, P., Stilgoe, J., & Vezzani, A. (2021). Editorial: The dark side of innovation. Industry and Innovation, 28(1), 102-112. https://doi.org/10.1080/13662716.2020.1818555

Costantini, M., Colin, J., & Decharme, B. (2023). Projected Climate‐Driven Changes of Water Table Depth in the World’s Major Groundwater Basins. Earth’s Future, 11(3), e2022EF003068. https://doi.org/10.1029/2022EF003068

Denyer, D., & Tranfield, D. (2006). Using qualitative research synthesis to build an actionable knowledge base. Management Decision, 44(2), 213-227. https://doi.org/10.1108/00251740610650201

Dixon-Woods, M. (2011). Systematic reviews and qualitative methods. In D. Silverman (Ed.), Qualitative Research. Issues of Theory, Method and Practice: 3 edition (pp. 331-346). London: Sage.

Doran, J., & Ryan, G. (2016). The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance. Business Strategy and the Environment, 25(2), 102-119. https://ideas.repec.org//a/bla/bstrat/v25y2016i2p102-119.html

Eck, N. J. V., & Waltman, L. (2009). How to normalize cooccurrence data? An analysis of some well-known similarity measures. Journal of the American Society for Information Science and Technology, 60(8), 1635-1651. https://doi.org/10.1002/asi.21075

Falchi, A., Grolleau, G., Mzoughi, N., & Pekovic, S. (2023). Eco-innovations and Job Satisfaction: A Moderated Mediation Approach. Journal of Innovation Economics & Management, 42(3), 185-199. https://doi.org/10.3917/jie.pr1.0142

Fernando, Y., & Uu, N. C. R. (2017). An empirical analysis of eco-design of electronic products on operational performance: Does environmental performance play role as a mediator? International Journal of Business Innovation and Research, 14(2), 188-205. https://doi.org/10.1504/IJBIR.2017.086285

García-Sánchez, I., Gallego-Alvarez, I., & Zafra-Gomez, J. (2019). Do the ecoinnovation and ecodesign strategies generate value added in munificent environments? Business Strategy and the Environment, 29(3), 1021-1033. https://doi.org/10.1002/bse.2414

Ghisetti, C., & Quatraro, F. (2017). Green Technologies and Environmental Productivity: A Cross-sectoral Analysis of Direct and Indirect Effects in Italian Regions. Ecological Economics, 132, 1-13. https://doi.org/10.1016/j.ecolecon.2016.10.003

Ghisetti, C., & Rennings, K. (2014). Environmental innovations and profitability: How does it pay to be green? An empirical analysis on the German innovation survey. Journal of Cleaner Production, 75, 106-117. http://linkinghub.elsevier.com/retrieve/pii/S0959652614003370

Greenwood, R., Jennings, P., & Hinings, C. (2015). Sustainability and organizational change: An institutional perspective. In R. Henderson, R. Gulati & M. Tushman (Eds.), Leading sustainable change (pp. 323-357). Oxford: Oxford University Press.

Guthrie, J., Ricceri, F., & Dumay, J. (2012). Reflections and projections: a decade of intellectual capital accounting research. The British Accounting Review, 44(2), 68-82. https://doi.org/10.1016/j.bar.2012.03.004

H. Song et al. (2017) Can environmental management improve financial performance: an empirical study of A-shares listed companies in China, Journal of Cleaner Production, 237,117 https://doi.org/10.1016/j.jclepro.2019.117674

Hermundsdottir, F., & Aspelund, A. (2021). Sustainability innovations and firm competitiveness: A review. Journal of Cleaner Production, 280, 124715. https://doi.org/10.1016/j.jclepro.2020.124715

Hizarci-Payne, A. K., İpek, İ., & Kurt Gümüş, G. (2021). How environmental innovation influences firm performance: A meta-analytic review. Business Strategy and the Environment, 30, 1174-1190. https://doi.org/10.1002/bse.2678

Hojnik, J. (2017). In Pursuit of Eco-innovation. Koper: University of Primorska Press. https://EconPapers.repec.org/RePEc:prp:uppmos:978-961-7023-53-4

Hojnik, J., & Ruzzier, M. (2016). What drives eco-innovation? A review of an emerging literature. Environmental Innovation and Societal Transitions, 19, 31-41. https://doi.org/10.1016/j.eist.2015.09.006

Horbach, J., & Rennings, K. (2013). Environmental innovation and employment dynamics in different technology fields – an analysis based on the German Community Innovation Survey 2009. Journal of Cleaner Production, 57(3), 158-165. https://dx.doi.org/10.2139/ssrn.2014612

Iranmanesh, M., Zailani, S., Hyun, S., Ali, M., & Kim, K. (2019). Impact of Lean Manufacturing Practices on Firms’ Sustainable Performance: Lean Culture as a Moderator. Sustainability, 11(4), 1112. https://doi.org/10.3390/su11041112

Jarneving, B. (2007). Bibliographic coupling and its application to research-front and other core documents. Journal of Informetrics, 1(4), 287-307. https://dx.doi.org/10.1016/j.joi.2007.07.004

Johl, S. K., & Toha, M. A. (2021). The Nexus between Proactive Eco-Innovation and Firm Financial Performance: A Circular Economy Perspective. Sustainability, 13(11), 6253. https://doi.org/10.3390/su13116253

Kemp, R., & Pearson, P. (2007). Final report MEI project about measuring eco-innovation. https://www.oecd.org/env/consumption-innovation/43960830.pdf

Khan, Z., Malik, M. Y., Latif, K., & Jiao, Z. (2020). Heterogeneous effect of eco-innovation and human capital on renewable & non-renewable energy consumption: Disaggregate analysis for G-7 countries. Energy, 209(C). https://ideas.repec.org//a/eee/energy/v209y2020ics0360544220315127.html

Kubatko, O. V. (2016). Ecological innovations as a source of fluctuations of national economy energy efficient development. Marketing and Management of Innovations, 4, 365-376. https://armgpublishing.com/journals/mmi/volume-7-issue-4/article-30/

Larbi-Siaw, O., Xuhua, H., Owusu, E., Owusu-Agyeman, A., Fulgence, B. E., & Frimpong, S. A. (2022). Eco-innovation, sustainable business performance and market turbulence moderation in emerging economies. Technology in Society, 68, 101899. https://doi.org/10.1016/j.techsoc.2022.101899

Leoncini, R., Marzucchi, A., Montresor, S., Rentocchini, F., & Rizzo, U. (2019). ‘Better late than never’: The interplay between green technology and age for firm growth. Small Business Economics, 52. https://doi.org/10.1007/s11187-017-9939-6

Li, Y. (2014). Environmental innovation practices and performance: Moderating effect of resource commitment. Journal of Cleaner Production, 66, 450-458. https://doi.org/10.1016/j.jclepro.2013.11.044

Li, Y., Huang, N., & Zhao, Y. (2022). The Impact of Green Innovation on Enterprise Green Economic Efficiency. International Journal of Environmental Research and Public Health, 19(24), 16464. https://doi.org/10.3390/ijerph192416464

Liao, Z. (2018). Corporate culture, environmental innovation and financial performance. Business Strategy and the Environment, 27, 1368-1375. https://doi.org/10.1002/bse.2186

Liao, Z. (2020). Is environmental innovation conducive to corporate financing? The moderating role of advertising expenditures. Business Strategy and the Environment, 29(3), 954-961. https://doi.org/10.1002/bse.2409

Liao, Z., & Liu, Y. (2022). Why Firm’s Reactive Eco‐innovation May Lead to Consumers’ Boycott. British Journal of Management, 33(2), 1110–1122. https://doi.org/10.1111/1467-8551.12483

Lin, R.-J., Tan, K.-H., & Geng, Y. (2013). Market demand, green product innovation, and firm performance: Evidence from Vietnam motorcycle industry. Journal of Cleaner Production, 40, 101-107. http://linkinghub.elsevier.com/retrieve/pii/S0959652612000029

Lopes Santos, D. F., Valente Rezende, M. D., & Cruz Basso, L. F. (2019). Eco-innovation and business performance in emerging and developed economies. Journal of Cleaner Production, 237, 117674. https://doi.org/10.1016/j.jclepro.2019.117674

Lopez Pérez, G., García Sánchez, I. M., & Zafra Gomez, J. L. (2023). A systematic literature review and bibliometric analysis of eco-innovation on financial performance: Identifying barriers and drivers. Business Strategy and the Environment, 1-20.

Machová R, Ambrus R, Zsigmond T, Bakó F. (2022). The Impact of Green Marketing on Consumer Behavior in the Market of Palm Oil Products. Sustainability. 14(3), 1364. https://doi.org/10.3390/su14031364

Mačiulytė-Šniukienė, A., & Sekhniashvili, D. (2021). The eco-innovation impact on economic and environmental performance of EU Member States. Business, Management and Economics Engineering, 19(02), 212-228. https://doi.org/10.3846/bmee.2021.14497

Marin, G. (2014). Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy. Research Policy, 43(2), 301-317. https://doi.org/10.1016/j.respol.2013.10.015

Marín-Vinuesa, L. M., Scarpellini, S., Portillo-Tarragona, P., & Moneva, J. M. (2020). The Impact of Eco-Innovation on Performance Through Measuring Financial Resources and Green Patents. Organization & Environment, 33(2), 285-310. https://doi.org/10.1177/1086026618819103

Martin, A., Markhvida, M., Hallegatte, S., & Walsh, B. (2020). Socio-Economic Impacts of COVID-19 on Household Consumption and Poverty. Economics of Disasters and Climate Change, 4(3), 453-479. https://doi.org/10.1007/s41885-020-00070-3

Massaro, M., Dumay, J., & Guthrie, J. (2016). On the shoulders of giants: undertaking a structured literature review in accounting. Accounting, Auditing & Accountability Journal, 29(5), 767-801. https://doi.org/10.1108/AAAJ-01-2015-1939

Mittal, E., & Kaur, P. (2023). Green HRM, green innovation and environmental performance: The moderating role of servant leadership. Human Systems Management, 42(1), 27-40. https://doi.org/10.3233/HSM-220066

Nie, L., Gong, H., & Lai, X. (2022). Green research intensity and diversified performance: The moderating role of environmental regulation. European Journal of Innovation Management, 27(2), 447-473. https://doi.org/10.1108/EJIM-02-2022-0100

Oncioiu, I., Căpuşneanu, S., Türkeș, M. C., Topor, D. I., Constantin, D.-M. O., Marin-Pantelescu, A., & Ștefan Hint, M. (2018). The Sustainability of Romanian SMEs and Their Involvement in the Circular Economy. Sustainability, 10(8), 8. https://doi.org/10.3390/su10082761

Ottman, J. A. (2004). Green Marketing: Opportunity for Innovation. The Journal of Sustainable Product Design, 1(10), 60. https://doi.org/10.5070/G311010346

Przychodzeń, J. (2014). Sustainable Oriented Innovations (SOI) – innowacje dla trwałego rozwoju. Zarządzanie Przedsiębiorstwem, 17(4), 34-41. http://yadda.icm.edu.pl/baztech/element/bwmeta1.element.baztech-fd2f408c-b205-4e16-b01a-a28bec92416a (in Polish).

Rennings, K. (1998). Towards a Theory and Policy of Eco-Innovation—Neoclassical and Co-Evolutionary Perspectives. ZEW Discussion Paper, 98-24. https://www.econstor.eu/bitstream/10419/24575/1/dp2498.pdf

Rennings, K. (2000). Redefining innovation—Eco-innovation research and the contribution from ecological economics. Ecological Economics, 32(2), 319-332. https://doi.org/10.1016/S0921-8009(99)00112-3

Santos, D. F. L., Lima, M. M. D., Basso, L. F. C., Kimura, H., & Sobreiro, V. A. (2017). Eco-innovation and financial performance at companies established in Brazil. International Journal of Business and Emerging Markets, 9(1), 68-89.

Scarpellini, S., Valero-Gil, J., Rivera-Torres, P., & Garcés-Ayerbe, C. (2017). Analysis of the generation of economic results in the different phases of the pro-environmental change process. Journal of Cleaner Production, 168, 1473-1481. https://doi.org/10.1016/j.jclepro.2017.09.114

Shen, S., Zhu, D., Rousseau, R., Su, X., & Wang, D. (2019). A refined method for computing bibliographic coupling strengths. Journal of Informetrics, 13(2), 605-615. https://doi.org/10.1016/j.joi.2019.01.012

Shields, M. D. (1997). Research in management accounting by North Americans in the 1990s. Journal of Management Accounting Research, 9, 3-61.

Shuwaikh, F., Benkraiem, R., & Dubocage, E. (2023). Investment in Green Innovation: How does It Contribute to Environmental and Financial Performance? Journal of Innovation Economics & Management, 41(2), 107-149. https://doi.org/10.3917/jie.pr1.0137

Stucki, T. (2019). Which firms benefit from investments in green energy technologies? – The effect of energy costs. Research Policy, 48(3), 546-555. https://doi.org/10.1016/j.respol.2018.09.010

Szutowski, D. (2020). The impact of management control systems on decision-making quality throughout the innovation process. An empirical analysis. Prace Naukowe Uniwersytetu Ekonomicznego We Wrocławiu, 64, 182-195. https://doi.org/10.15611/pn.2020.6.14

Szutowski, D. (2021). The impact of eco-innovation on the stock returns of technology-based KIBS: role of eco-innovation type and its degree of novelty. Sustainability Accounting, Management and Policy Journal, 12, 130-155. https://doi.org/10.1108/SAMPJ-10-2019-0375

Tang, P., Liu, X., Hong, Y., & Yang, S. (2023). Moving beyond economic criteria: Exploring the social impact of green innovation from the stakeholder management perspective. Corporate Social Responsibility and Environmental Management, 30(3), 1042-1052. https://ideas.repec.org//a/wly/corsem/v30y2023i3p1042-1052.html

Thyer, B. A. (2008). Preparing Research Articles (Pocket Guide to Social Work Research Methods). Oxford: Oxford University Press.

Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a Methodology for Developing Evidence‐Informed Management Knowledge by Means of Systematic Review. British Journal of Management, 14(3), 207-222. https://doi.org/10.1111/1467-8551.00375

Ullah, S., Mehmood, T., & Ahmad, T. (2023). Green intellectual capital and green HRM enabling organizations go green: Mediating role of green innovation. International Journal of Innovation Science, 15(2), 245-259. https://doi.org/10.1108/IJIS-12-2021-0222

van Eck, N. J., & Waltman, L. (2010). Software survey: VOSviewer, a computer program for bibliometric mapping. Scientometrics, 84, 523-538. https://doi.org/10.1007/s11192-009-0146-3

van Eck, N. J., & Waltman, L. (2013). VOSviewer manual. Leiden: Univeristeit Leiden, 1(1), 1-53.

van Oorschot, J. A. W. H., Hofman, E., & Halman, J. I. M. (2018). A bibliometric review of the innovation adoption literature. Technological Forecasting and Social Change, 134, 1-21. https://doi.org/10.1016/j.techfore.2018.04.032

Waltman, L. (2016). A review of the literature on citation impact indicators. Journal of Informetrics, 10(2), 365-391. https://doi.org/10.1016/j.joi.2016.02.007

Wang, W., & Zhang, Y. J. (2022). Does China's carbon emissions trading scheme affect the market power of high-carbon enterprises? Energy Econ. 108, 105906. https://doi.org/10.1016/j.eneco.2022.105906

Weina, D., Gilli, M., Mazzanti, M., & Nicolli, F. (2016). Green inventions and greenhouse gas emission dynamics: A close examination of provincial Italian data. Environmental Economics and Policy Studies, 18(2), 247-263. https://doi.org/10.1007/s10018-015-0126-1

Xie, X., Hoang, T. T., & Zhu, Q. (2022). Green process innovation and financial performance: The role of green social capital and customers’ tacit green needs. Journal of Innovation & Knowledge, 7(1), 100165. https://doi.org/10.1016/j.jik.2022.100165

Zhang, R., & Yuan, J. (2022). Enhanced author bibliographic coupling analysis using semantic and syntactic citation information. Scientometrics, 127(12), 7681-7706. https://ideas.repec.org//a/spr/scient/v127y2022i12d10.1007_s11192-022-04333-6.html

Zhao, Y., Zhao C., Yi, G., Sheng H., & T. Feng, 2021. Green supplier integration and environmental innovation in Chinese firms: The joint effect of governance mechanism and trust. Corporate Social Responsibility and Environmental Management, John Wiley & Sons, 28(1), 169-183. https://doi.org/10.1002/csr.2040

Zheng, L., & Iatridis, K. (2022). Friends or foes? A systematic literature review and meta-analysis of the relationship between eco-innovation and firm performance. Business Strategy and the Environment, 31(4), 1838-1855. https://doi.org/10.1002/bse.2986

Zulkiffli, S. N. A., Zaidi, N. F. Z., Padlee, S. F., & Sukri, N. K. A. (2022). Eco-Innovation Capabilities and Sustainable Business Performance during the COVID-19 Pandemic. Sustainability, 14(13), 7525. https://doi.org/10.3390/su14137525