IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v23y2014i8p567-576.html
   My bibliography  Save this article

Impact of Green Innovation on Labor Productivity and its Determinants: an Analysis of the Korean Manufacturing Industry

Author

Listed:
  • Chungwon Woo
  • Yanghon Chung
  • Dongphil Chun
  • Seunghun Han
  • Dukhee Lee

Abstract

Due to worsening environmental conditions around the globe, firms have been investing a great deal of money in green technologies as a way of coping with the environmental crisis. This paper uses a unique data set based on the Korea Innovation Survey to examine the impact of green innovation on labor productivity, and the determinants of environmental activities in 2010. The empirical results show that green innovation intended for both firm and customer benefits has a positive effect on labor productivity. This finding means that firms need to implement firm‐oriented green innovation as well as customer‐oriented green innovation in order to increase their performance. Our findings also show that there are significant differences in aggregate green innovations depending on different firm sizes and industries. Specifically, large firms implement environmental activities more than small ones, and pollution‐intensive industries tend to invest more in activities related to environmental technology. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Chungwon Woo & Yanghon Chung & Dongphil Chun & Seunghun Han & Dukhee Lee, 2014. "Impact of Green Innovation on Labor Productivity and its Determinants: an Analysis of the Korean Manufacturing Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 23(8), pages 567-576, December.
    • Handle: RePEc:bla:bstrat:v:23:y:2014:i:8:p:567-576
    DOI: 10.1002/bse.1807
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.1807
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.1807?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
    3. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    4. M. Diaz & Rosario Sanchez, 2008. "Firm size and productivity in Spain: a stochastic frontier analysis," Small Business Economics, Springer, vol. 30(3), pages 315-323, March.
    5. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    6. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation, Market Structure, and Firm Size," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 2, pages 16-23, Edward Elgar Publishing.
    7. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    8. Eom, Boo-Young & Lee, Keun, 2010. "Determinants of industry-academy linkages and, their impact on firm performance: The case of Korea as a latecomer in knowledge industrialization," Research Policy, Elsevier, vol. 39(5), pages 625-639, June.
    9. Basil Al‐Najjar & Aspioni Anfimiadou, 2012. "Environmental Policies and Firm Value," Business Strategy and the Environment, Wiley Blackwell, vol. 21(1), pages 49-59, January.
    10. Goto, Akira & Suzuki, Kazuyuki, 1989. "R&D Capital, Rate of Return on R&D Investment and Spillover of R&D in Japanese Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 555-564, November.
    11. Rehfeld, Katharina-Maria & Rennings, Klaus & Ziegler, Andreas, 2007. "Integrated product policy and environmental product innovations: An empirical analysis," Ecological Economics, Elsevier, vol. 61(1), pages 91-100, February.
    12. Davide Antonioli, 2009. "Industrial Relations, Techno-Organizational Innovation and Firm Economic Performance," Economia politica, Società editrice il Mulino, issue 1, pages 21-52.
    13. Louis H. Amato & Christie H. Amato, 2012. "Environmental Policy, Rankings and Stock Values," Business Strategy and the Environment, Wiley Blackwell, vol. 21(5), pages 317-325, July.
    14. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
    15. Ru-Jen Lin & Rong-Huei Chen & Thao-Minh Ho, 2013. "Market Demand, Green Innovation, and Firm Performance: Evidence from Hybrid Vehicle Industry," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    16. Francesca Lotti & Enrico Santarelli, 2001. "Linking Knowledge to Productivity: A Germany-Italy Comparison Using the CIS Database," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(3), pages 293-317, September.
    17. Karen Palmer & Wallace E. Oates & Paul R. Portney & Karen Palmer & Wallace E. Oates & Paul R. Portney, 2004. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 3, pages 53-66, Edward Elgar Publishing.
    18. Ailie K.Y. Tang & Kee‐hung Lai & T. C. E. Cheng, 2012. "Environmental Governance of Enterprises and their Economic Upshot through Corporate Reputation and Customer Satisfaction," Business Strategy and the Environment, Wiley Blackwell, vol. 21(6), pages 401-411, September.
    19. Fawzi Halila, 2007. "Networks as a means of supporting the adoption of organizational innovations in SMEs: the case of Environmental Management Systems (EMSs) based on ISO 14001," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 14(3), pages 167-181, July.
    20. Déirdre Crowe & Louis Brennan, 2007. "Environmental considerations within manufacturing strategy: an international study," Business Strategy and the Environment, Wiley Blackwell, vol. 16(4), pages 266-289, May.
    21. Chiou, Tzu-Yun & Chan, Hing Kai & Lettice, Fiona & Chung, Sai Ho, 2011. "The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 822-836.
    22. Zhou, Kevin Zheng & Brown, James R. & Dev, Chekitan S., 2009. "Market orientation, competitive advantage, and performance: A demand-based perspective," Journal of Business Research, Elsevier, vol. 62(11), pages 1063-1070, November.
    23. Ki‐Hoon Lee & Ji‐Whan Kim, 2011. "Integrating Suppliers into Green Product Innovation Development: an Empirical Case Study in the Semiconductor Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 20(8), pages 527-538, December.
    24. Despina Galani & Efthymios Gravas & Antonios Stavropoulos, 2012. "Company Characteristics and Environmental Policy," Business Strategy and the Environment, Wiley Blackwell, vol. 21(4), pages 236-247, May.
    25. Javier González‐Benito & Óscar González‐Benito, 2010. "A study of determinant factors of stakeholder environmental pressure perceived by industrial companies," Business Strategy and the Environment, Wiley Blackwell, vol. 19(3), pages 164-181, March.
    26. Qi Guoyou & Zeng Saixing & Tam Chiming & Yin Haitao & Zou Hailiang, 2013. "Stakeholders' Influences on Corporate Green Innovation Strategy: A Case Study of Manufacturing Firms in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(1), pages 1-14, January.
    27. Hwang, Junseok & Lee, Youngjin, 2010. "External knowledge search, innovative performance and productivity in the Korean ICT sector," Telecommunications Policy, Elsevier, vol. 34(10), pages 562-571, November.
    28. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 343-364.
    Full references (including those not matched with items on IDEAS)

    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. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    2. Justin Doran & Geraldine Ryan, 2016. "The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 102-119, February.
    3. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    4. 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.
    5. Rosa Maria Dangelico, 2016. "Green Product Innovation: Where we are and Where we are Going," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 560-576, December.
    6. Ru-Jen Lin & Rong-Huei Chen & Thao-Minh Ho, 2013. "Market Demand, Green Innovation, and Firm Performance: Evidence from Hybrid Vehicle Industry," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    7. Stanley Kam Sing Wong, 2013. "Environmental Requirements, Knowledge Sharing and Green Innovation: Empirical Evidence from the Electronics Industry in China," Business Strategy and the Environment, Wiley Blackwell, vol. 22(5), pages 321-338, July.
    8. Feng Zhang & Lei Zhu, 2019. "Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1012-1026, September.
    9. Qi Guoyou & Zeng Saixing & Tam Chiming & Yin Haitao & Zou Hailiang, 2013. "Stakeholders' Influences on Corporate Green Innovation Strategy: A Case Study of Manufacturing Firms in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(1), pages 1-14, January.
    10. 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.
    11. Morteza Akbari & Hamid Padash & Zahra Shahabaldini Parizi & Haniye Rezaei & Elmira Shahriari & Ala Khosravani, 2022. "A bibliometric review of green innovation research: identifying knowledge domain and network," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 3993-4023, December.
    12. Quang Le Van & Thanh Viet Nguyen & Manh Hung Nguyen, 2019. "Sustainable development and environmental policy: The engagement of stakeholders in green products in Vietnam," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 675-687, July.
    13. Huang, Yi-Chun & Chen, Chih Ta, 2022. "Exploring institutional pressures, firm green slack, green product innovation and green new product success: Evidence from Taiwan's high-tech industries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. Justin Doran & Geraldine Ryan, 2014. "Eco-Innovation – does additional engagement lead to additional rewards?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(11), pages 1110-1130, November.
    15. 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.
    16. Janine Fleith Medeiros & Gabriel Vidor & José Luís Duarte Ribeiro, 2018. "Driving Factors for the Success of the Green Innovation Market: A Relationship System Proposal," Journal of Business Ethics, Springer, vol. 147(2), pages 327-341, January.
    17. Lu Zheng & Konstantinos Iatridis, 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, Wiley Blackwell, vol. 31(4), pages 1838-1855, May.
    18. Mingfeng Tang & Grace Walsh & Daniel Lerner & Markus A. Fitza & Qiaohua Li, 2018. "Green Innovation, Managerial Concern and Firm Performance: An Empirical Study," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 39-51, January.
    19. Chan, Hing Kai & Yee, Rachel W.Y. & Dai, Jing & Lim, Ming K., 2016. "The moderating effect of environmental dynamism on green product innovation and performance," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 384-391.
    20. 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.

    More about this item

    Statistics

    Access and download statistics

    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:bla:bstrat:v:23:y:2014:i:8:p:567-576. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    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.