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Exploring the Effects of Innovation Strategies and Size on Manufacturing Firms’ Productivity and Environmental Impact

Author

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  • Jean Pierre Seclen-Luna

    (Department of Management, Pontifical Catholic University of Peru, Lima 32, Peru)

  • Pablo Moya-Fernández

    (Department of Quantitative Methods for Economics and Business, University of Granada, 18071 Granada, Spain)

  • Ángeles Pereira

    (Department of Applied Economics, University of Santiago of Compostela, 15782 Santiago de Compostela, Spain)

Abstract

In economies that are based on natural resources, efforts to achieve sustainability still seem unclear, especially in manufacturing companies. As a result, from a business perspective, many manufacturers have adopted various strategies to maintain their competitiveness in line with environmental regulations. In addition to product and process innovation, we have analyzed innovation based on product–service innovation (PSI), or servitization, which is seen as key to promoting more resource-efficient economies. This study examines the effects of innovation strategies on productivity and environmental impact. Based on data extracted from the National Innovation Survey of the manufacturing industries of Peru, a sample of 791 companies were analyzed. Our findings indicate that, although only a few companies carry out product and process innovation and especially product–service innovation, when they do, they have a positive effect on both productivity and environmental impact. However, this relationship is affected by the size of the company. Thus, the innovation strategies have a greater positive effect on environmental impact in large companies than companies with fewer than 50 employees. Finally, despite the importance of product–service innovation, it seems that this strategy is not yet established in Peruvian manufacturing companies. Given the positive effect on productivity and environmental impact, we conclude by emphasizing the importance of establishing public policies aimed at disseminating and promoting this type of innovation, with specific support for companies with fewer than 50 employees.

Suggested Citation

  • Jean Pierre Seclen-Luna & Pablo Moya-Fernández & Ángeles Pereira, 2021. "Exploring the Effects of Innovation Strategies and Size on Manufacturing Firms’ Productivity and Environmental Impact," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:6:p:3289-:d:518625
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    Cited by:

    1. Yu Zhang & Yajuan Wang & Yao Li, 2021. "Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    2. Xiu Jin & Chenglin Qing & Shanyue Jin, 2022. "Ethical Leadership and Innovative Behavior: Mediating Role of Voice Behavior and Moderated Mediation Role of Psychological Safety," Sustainability, MDPI, vol. 14(9), pages 1-24, April.
    3. Yamashita, Andre S. & Fujii, Hidemichi, 2022. "Trend and priority change of climate change mitigation technology in the global mining sector," Resources Policy, Elsevier, vol. 78(C).
    4. Wim Coreynen & Arjen van Witteloostuijn & Johanna Vanderstraeten, 2021. "Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.

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