IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i17p7106-d406610.html
   My bibliography  Save this article

Eco-innovation Capability and Sustainability Driven Innovation Practices in Romanian SMEs

Author

Listed:
  • Sebastian Ion Ceptureanu

    (Management Department, Faculty of Management, The Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Eduard Gabriel Ceptureanu

    (Management Department, Faculty of Management, The Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Doina Popescu

    (Management Department, Faculty of Management, The Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Olguta Anca Orzan

    (Department of Oncologic Dermatology, University of Medicine and Pharmacy “Carol Davila” Bucharest, Elias Emergency University Hospital, 020021 Bucharest, Romania)

Abstract

This study examines the influence of eco-innovation capability on sustainability driven innovation practices in SMEs. In this study, eco-innovation capability is represented by four factors—internal setting, strategies, operations and structure—while sustainability driven innovation practices are represented by three types of practices—process, organizational and product. The direct relationship between eco-innovation capability and sustainability driven innovation practices is statistically tested by using a sample of 397 Romanian manufacturing small and medium-sized enterprises using PLS–SEM and SmartPLS software. The results show that the development of eco-innovation capability has a direct and positive effect on sustainability driven innovation practices employed in manufacturing SMEs by encouraging them to get involved in cleaner production practices, waste handling and recycling on a regular basis or integrate eco-efficiency into their operations, develop new channels for sustainable products or integrate customers’ suggestions or complaints, implement environment management systems, use eco-friendly raw materials or focus on new product development, for instance. Therefore, the paper extends the literature dedicated to eco-innovation by shedding some light on what to focus on when building eco-innovation capability.

Suggested Citation

  • Sebastian Ion Ceptureanu & Eduard Gabriel Ceptureanu & Doina Popescu & Olguta Anca Orzan, 2020. "Eco-innovation Capability and Sustainability Driven Innovation Practices in Romanian SMEs," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:7106-:d:406610
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/17/7106/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/12/17/7106/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marko Sarstedt & Erik Mooi, 2014. "The Market Research Process," Springer Texts in Business and Economics, in: A Concise Guide to Market Research, edition 2, chapter 2, pages 11-23, Springer.
    2. Olga Hawn & Ioannis Ioannou, 2016. "Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2569-2588, December.
    3. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    4. Sharma, Pramodita & Sharma, Sanjay, 2011. "Drivers of Proactive Environmental Strategy in Family Firms," Business Ethics Quarterly, Cambridge University Press, vol. 21(2), pages 309-334, April.
    5. Patricia S. Sánchez-Medina & Jack Corbett & Arcelia Toledo-López, 2011. "Environmental Innovation and Sustainability in Small Handicraft Businesses in Mexico," Sustainability, MDPI, vol. 3(7), pages 1-19, July.
    6. 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.
    7. 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.
    8. Jean D. Kabongo & Olivier Boiral, 2017. "Doing More with Less: Building Dynamic Capabilities for Eco‐Efficiency," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 956-971, November.
    9. Su‐Yol Lee & Robert D. Klassen, 2016. "Firms’ Response to Climate Change: The Interplay of Business Uncertainty and Organizational Capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 577-592, December.
    10. Albort-Morant, Gema & Leal-Millán, Antonio & Cepeda-Carrión, Gabriel, 2016. "The antecedents of green innovation performance: A model of learning and capabilities," Journal of Business Research, Elsevier, vol. 69(11), pages 4912-4917.
    11. Stefan Gold & Stefan Seuring & Philip Beske, 2010. "Sustainable supply chain management and inter‐organizational resources: a literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(4), pages 230-245, July.
    12. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    13. Rosa Maria Dangelico & Devashish Pujari & Pierpaolo Pontrandolfo, 2017. "Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 490-506, May.
    14. Nicholas Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2010. "Modern Management: Good for the Environment or Just Hot Air?," Economic Journal, Royal Economic Society, vol. 120(544), pages 551-572, May.
    15. Lee, Neil & Sameen, Hiba & Cowling, Marc, 2015. "Access to finance for innovative SMEs since the financial crisis," Research Policy, Elsevier, vol. 44(2), pages 370-380.
    16. repec:dau:papers:123456789/10093 is not listed on IDEAS
    17. Stephen Brammer & Stefan Hoejmose & Kerry Marchant, 2012. "Environmental Management in SMEs in the UK: Practices, Pressures and Perceived Benefits," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 423-434, November.
    18. Aseem Prakash & Matthew Potoski, 2012. "Voluntary environmental programs: A comparative perspective," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(1), pages 123-138, December.
    19. Lisa Melander, 2018. "Customer and Supplier Collaboration in Green Product Innovation: External and Internal Capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 27(6), pages 677-693, September.
    20. Guoyou Qi & Saixing Zeng & Xiaodong Li & Chiming Tam, 2012. "Role of Internalization Process in Defining the Relationship between ISO 14001 Certification and Corporate Environmental Performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(3), pages 129-140, May.
    21. Valery S. Katkalo & Christos N. Pitelis & David J. Teece, 2010. "Introduction: On the nature and scope of dynamic capabilities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1175-1186, August.
    22. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    23. De Marchi, Valentina, 2012. "Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 41(3), pages 614-623.
    24. Hottenrott, Hanna & Lopes-Bento, Cindy, 2014. "(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes," Research Policy, Elsevier, vol. 43(6), pages 1055-1066.
    25. Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence from A Panel of British and French Establishments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1449-1492.
    26. 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.
    27. Kay H. Hofmann & Gregory Theyel & Craig H. Wood, 2012. "Identifying Firm Capabilities as Drivers of Environmental Management and Sustainability Practices – Evidence from Small and Medium‐Sized Manufacturers," Business Strategy and the Environment, Wiley Blackwell, vol. 21(8), pages 530-545, December.
    28. Iñaki Heras‐Saizarbitoria & German Arana & Olivier Boiral, 2016. "Outcomes of Environmental Management Systems: the Role of Motivations and Firms’ Characteristics," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 545-559, December.
    29. Wai Wai Ko & Gordon Liu, 2017. "Environmental Strategy and Competitive Advantage: The Role of Small‐ and Medium‐Sized enterprises' Dynamic Capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 584-596, July.
    30. Yu-Shan Chen, 2008. "The Driver of Green Innovation and Green Image – Green Core Competence," Journal of Business Ethics, Springer, vol. 81(3), pages 531-543, September.
    31. Antonioli, Davide & Mancinelli, Susanna & Mazzanti, Massimiliano, 2013. "Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies," Research Policy, Elsevier, vol. 42(4), pages 975-988.
    32. Darnall, Nicole & Henriques, Irene & Sadorsky, Perry, 2008. "Do environmental management systems improve business performance in an international setting?," Journal of International Management, Elsevier, vol. 14(4), pages 364-376, December.
    33. Yang, Chen-Lung & Lin, Shu-Ping & Chan, Ya-hui & Sheu, Chwen, 2010. "Mediated effect of environmental management on manufacturing competitiveness: An empirical study," International Journal of Production Economics, Elsevier, vol. 123(1), pages 210-220, January.
    34. Javier González‐Benito & Óscar González‐Benito, 2006. "A review of determinant factors of environmental proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 15(2), pages 87-102, March.
    35. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    36. Cagno, Enrico & Trianni, Andrea, 2013. "Exploring drivers for energy efficiency within small- and medium-sized enterprises: First evidences from Italian manufacturing enterprises," Applied Energy, Elsevier, vol. 104(C), pages 276-285.
    37. Nick Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2010. "In brief: Modern Management: Good for the environment or just hot air?," CentrePiece - The magazine for economic performance 303, Centre for Economic Performance, LSE.
    38. Sarkis, Joseph & Rasheed, Abdul, 1995. "Greening the manufacturing function," Business Horizons, Elsevier, vol. 38(5), pages 17-27.
    39. Stefan Schaltegger, 2011. "Sustainability as a driver for corporate economic success," Society and Economy, Akadémiai Kiadó, Hungary, vol. 33(1), pages 15-28, April.
    40. Marko Sarstedt & Erik Mooi, 2014. "A Concise Guide to Market Research," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-642-53965-7, August.
    41. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    42. Kesidou, Effie & Demirel, Pelin, 2012. "On the drivers of eco-innovations: Empirical evidence from the UK," Research Policy, Elsevier, vol. 41(5), pages 862-870.
    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. Jacek Wysocki, 2021. "Innovative Green Initiatives in the Manufacturing SME Sector in Poland," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    2. Valentin Kuleto & Milena P. Ilić & Rocsana Bucea-Manea-Țoniş & David-Florin Ciocodeică & Horia Mihălcescu & Veronica Mindrescu, 2022. "The Attitudes of K–12 Schools’ Teachers in Serbia towards the Potential of Artificial Intelligence," Sustainability, MDPI, vol. 14(14), pages 1-12, July.
    3. Doina I. POPESCU & Eduard Gabriel CEPTUREANU & Sebastian Ion CEPTUREANU, 2020. "Strategies Of Luxury Brands After Coronavirus," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 515-521, November.
    4. Tița Raluca-Florentina, 2022. "The Utility of Blockchain Technology in the Electronic Commerce of Tourism Services: An Exploratory Study on Romanian Consumers," Sustainability, MDPI, vol. 14(2), pages 1-14, January.
    5. Milica Jevremović & Nada Staletić & Gheorghe Orzan & Milena P. Ilić & Zorica Jelić & Cristina Teodora Bălăceanu & Oana Valeria Paraschiv, 2022. "Predicting User Behaviour Based on the Level of Interactivity Implemented in Blockchain Technologies in Websites and Used Devices," Sustainability, MDPI, vol. 14(4), pages 1-20, February.

    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. 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.
    2. Pelin Demirel & Effie Kesidou, 2019. "Sustainability‐oriented capabilities for eco‐innovation: Meeting the regulatory, technology, and market demands," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 847-857, July.
    3. 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.
    4. Zhunxin Huang & Zengrui Xiao, 2023. "Dynamic Capabilities, Environmental Management Capabilities, Stakeholder Pressure and Eco-Innovation of Chinese Manufacturing Firms: A Moderated Mediation Model," Sustainability, MDPI, vol. 15(9), pages 1-22, May.
    5. Valero-Gil, Jesus & Surroca, Jordi A. & Tribo, Josep A. & Gutierrez, Leopoldo & Montiel, Ivan, 2023. "Innovation vs. standardization: The conjoint effects of eco-innovation and environmental management systems on environmental performance," Research Policy, Elsevier, vol. 52(4).
    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. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    8. Grazia Cecere & Nicoletta Corrocher & Maria Luisa Mancusi, 2020. "Financial constraints and public funding of eco-innovation: empirical evidence from European SMEs," Small Business Economics, Springer, vol. 54(1), pages 285-302, January.
    9. 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.
    10. Magdalena Pichlak, 2021. "The Drivers of Technological Eco-Innovation—Dynamic Capabilities and Leadership," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    11. 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.
    12. Gutsche, Gunnar & Ziegler, Andreas, 2019. "Determinants of environmental product and process innovations: New evidence on the basis of European panel data," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203617, Verein für Socialpolitik / German Economic Association.
    13. Antonella Biscione & Raul Caruso & Annunziata de Felice, 2021. "Environmental innovation in European transition countries," Applied Economics, Taylor & Francis Journals, vol. 53(5), pages 521-535, January.
    14. 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.
    15. Amandine Pinget & Rachel Bocquet & Caroline Mothe, 2015. "Barriers to Environmental Innovation in SMEs: Empirical Evidence from French Firms," Post-Print hal-01300837, HAL.
    16. Christoph P. Kiefer & Pablo Del Río González & Javier Carrillo‐Hermosilla, 2019. "Drivers and barriers of eco‐innovation types for sustainable transitions: A quantitative perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 155-172, January.
    17. Caroline Danièle Mothe & Thuc Uyen Nguyen-Thi, 2017. "Persistent openness and environmental innovation: An empirical analysis of French manufacturing firms," Post-Print hal-01609129, HAL.
    18. Siying Long & Zhongju Liao, 2021. "Are fiscal policy incentives effective in stimulating firms' eco‐product innovation? The moderating role of dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3095-3104, November.
    19. 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.
    20. Marzucchi, Alberto & Montresor, Sandro, 2017. "Forms of knowledge and eco-innovation modes: Evidence from Spanish manufacturing firms," Ecological Economics, Elsevier, vol. 131(C), pages 208-221.

    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:17:p:7106-:d:406610. 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.