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Innovation as a driver of eco‐innovation in the firm: An approach from the dynamic capabilities theory

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  • Nieves Arranz
  • Marta Arroyabe
  • Jun Li
  • Juan Carlos Fernandez de Arroyabe

Abstract

The aim of this study is to investigate how innovative capabilities of the firm affect eco‐innovation from a dynamic capability lens. We build on OECD research to conceptualise eco‐innovation as the capacity with which firms modify, redesign, and create products, processes, procedures, and organisations in order to reduce environmental impact. We propose and test the temporal and relational properties of eco‐innovation as a capability. We demonstrate that eco‐innovation possesses two properties of innovative capabilities, namely, persistence over time and interrelation with other innovations. We thus shed new light on the mechanism through which firms engage in eco‐innovation. We also provide empirical evidence to the debate on the relationship between the “normal” innovation (technological or nontechnological) and eco‐innovation. We show that eco‐innovation and innovation are interrelated both simultaneously and sequentially. Moreover, we show that innovation capabilities and eco‐innovation are not only related, but they also have a complementary nature, which facilitates the development of future eco‐innovation.

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  • Nieves Arranz & Marta Arroyabe & Jun Li & Juan Carlos Fernandez de Arroyabe, 2020. "Innovation as a driver of eco‐innovation in the firm: An approach from the dynamic capabilities theory," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1494-1503, March.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:3:p:1494-1503
    DOI: 10.1002/bse.2448
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    3. Fernandez de Arroyabe, J.C. & Arranz, N. & Schumann, M. & Arroyabe, M.F., 2021. "The development of CE business models in firms: The role of circular economy capabilities," Technovation, Elsevier, vol. 106(C).
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    6. Hartmann, Julia & Inkpen, Andrew & Ramaswamy, Kannan, 2022. "An FsQCA exploration of multiple paths to ecological innovation adoption in European transportation," Journal of World Business, Elsevier, vol. 57(5).
    7. Kristian Peters & Paul Buijs, 2022. "Strategic ambidexterity in green product innovation: Obstacles and implications," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 173-193, January.
    8. Shenggang Ren & Yue Wang & Yucai Hu & Ji Yan, 2021. "CEO hometown identity and firm green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 756-774, February.
    9. Dhekra Ben Amara & Hong Chen, 2021. "The impact of participative decision-making on eco-innovation capability: the mediating role of motivational eco-innovation factors," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6966-6986, May.
    10. Miguel-Angel Galindo-Martín & María-Soledad Castaño-Martínez & María-Teresa Méndez-Picazo, 2020. "The Relationship between Green Innovation, Social Entrepreneurship, and Sustainable Development," Sustainability, MDPI, vol. 12(11), pages 1-19, June.
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