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Does it pay to be eco? The mediating role of competitive benefits and the effect of ISO14001

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  • Hojnik, Jana
  • Ruzzier, Mitja

Abstract

Eco-innovation has become an important instrument to help companies reduce their environmental impact and gain a competitive advantage in increasingly competitive environments. Despite recent research conducted in this field, findings concerning the relationship between eco-innovation and firm performance remain conflicting, inconclusive and incomplete. This study aimed to clarify this relationship by incorporating competitive benefits as a mediator between eco-innovation and firm performance. Three core questions are examined: How does eco-innovation influence competitive benefits and firm performance? Do competitive benefits mediate the relationship between eco-innovation and firm performance? How does ISO14001 influence competitive benefits and firm performance? The study finds that competitive benefits mediate and strengthen the relationship between eco-innovation and firm performance. In addition, the results reveal that ISO14001 positively affects competitive benefits and thus leads to greater competitive benefits, while the association between ISO14001 and firm performance is not found to be statistically significant. The paper concludes with a discussion of implications for policy makers and companies, limitations, and future research directions.

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  • Hojnik, Jana & Ruzzier, Mitja, 2017. "Does it pay to be eco? The mediating role of competitive benefits and the effect of ISO14001," European Management Journal, Elsevier, vol. 35(5), pages 581-594.
    • Handle: RePEc:eee:eurman:v:35:y:2017:i:5:p:581-594
    DOI: 10.1016/j.emj.2017.07.008
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    5. Ying Zhang & Hongfei Ruan & Guiyao Tang & Li Tong, 2021. "Power of sustainable development: Does environmental management system certification affect a firm's access to finance?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3772-3788, December.
    6. Jiafeng Gu, 2024. "Peer influence, market power, and enterprises' green innovation: Evidence from Chinese listed firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 108-121, January.
    7. Yu Bai & Yuchen Xu & Jianling Jiao, 2022. "Can corporate environmental management benefit from multirelationship social network? An improved maturity model and text mining based on the big data from Chinese enterprises," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5783-5810, April.
    8. Xin Chen & Na Wang, 2023. "From green to gold? A test of the innovation incentive and performance improvement effect of enterprise voluntary environmental management," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8005-8029, August.
    9. Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
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