IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v28y2019i6p1045-1059.html
   My bibliography  Save this article

Green innovation and knowledge: The role of size

Author

Listed:
  • Ester Martínez‐Ros
  • Rasi Kunapatarawong

Abstract

This paper reports research on relationship between firm's knowledge sourcing strategy and green innovation. The data are taken from Spanish Technological Innovation Panel survey during 2007–2011. The study contributed to the literature by focusing on the moderating role of firm size on the relationship between knowledge sources and green innovations. Results from over 5,000 firms indicate a shift in the focus from internal knowledge to external knowledge when developing green innovations as firms grow in size. Despite benefits from broad knowledge search on green innovations, the relationship has an inverted U shape. The diminishing returns of knowledge breadth on green innovations are present for smaller firms and disappearing as firms get larger. Government policies promoting more coordination and knowledge complementarity between private and public sector will help to influence more knowledge transfer, ensuring a more sustainable and green economy.

Suggested Citation

  • Ester Martínez‐Ros & Rasi Kunapatarawong, 2019. "Green innovation and knowledge: The role of size," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1045-1059, September.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:6:p:1045-1059
    DOI: 10.1002/bse.2300
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2300
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.2300?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. Vanessa Oltra & Maider Saint Jean, 2005. "The dynamics of environmental innovations: three stylised trajectories of clean technology," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(3), pages 189-212.
    2. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    3. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    4. 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.
    5. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    6. Schiederig, Tim & Tietze, Frank & Herstatt, Cornelius, 2011. "What is green Innovation? A quantitative literature review," Working Papers 63, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    7. C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
    8. 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.
    9. Iwasa, Tomoko & Odagiri, Hiroyuki, 2004. "Overseas R&D, knowledge sourcing, and patenting: an empirical study of Japanese R&D investment in the US," Research Policy, Elsevier, vol. 33(5), pages 807-828, July.
    10. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    11. Leonidou, Leonidas C. & Leonidou, Constantinos N. & Fotiadis, Thomas A. & Zeriti, Athina, 2013. "Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance," Tourism Management, Elsevier, vol. 35(C), pages 94-110.
    12. Klaus Rennings & Christian Rammer, 2009. "Increasing Energy and Resource Efficiency through Innovation: An Explorative Analysis Using Innovation Survey Data," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 59(5), pages 442-459, December.
    13. Laursen, Keld & Salter, Ammon, 2004. "Searching high and low: what types of firms use universities as a source of innovation?," Research Policy, Elsevier, vol. 33(8), pages 1201-1215, October.
    14. Jens Horbach & Vanessa Oltra & Jean Belin, 2013. "Determinants and Specificities of Eco-Innovations Compared to Other Innovations--An Econometric Analysis for the French and German Industry Based on the Community Innovation Survey-super-1," Industry and Innovation, Taylor & Francis Journals, vol. 20(6), pages 523-543, August.
    15. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    16. Veugelers, Reinhilde, 2012. "Which policy instruments to induce clean innovating?," Research Policy, Elsevier, vol. 41(10), pages 1770-1778.
    17. Aija Leiponen & Constance E. Helfat, 2010. "Innovation objectives, knowledge sources, and the benefits of breadth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 224-236, February.
    18. 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.
    19. Costantini, Valeria & Mazzanti, Massimiliano & Montini, Anna, 2013. "Environmental performance, innovation and spillovers. Evidence from a regional NAMEA," Ecological Economics, Elsevier, vol. 89(C), pages 101-114.
    20. Costa-Campi, M.T. & García-Quevedo, J. & Martínez-Ros, E., 2017. "What are the determinants of investment in environmental R&D?," Energy Policy, Elsevier, vol. 104(C), pages 455-465.
    21. Vanessa Oltra & Maider Saint Jean, 2005. "Environmental innovation and clean technology: an evolutionary framework," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 8(3), pages 153-172.
    22. José Lejarraga & Ester Martinez-Ros, 2014. "Size, R&D productivity and Decision Styles," Small Business Economics, Springer, vol. 42(3), pages 643-662, March.
    23. Elisenda Jové‐Llopis & Agustí Segarra‐Blasco, 2018. "Eco‐innovation strategies: A panel data analysis of Spanish manufacturing firms," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1209-1220, December.
    24. Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January.
    25. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Embedding environmental innovation in local production systems: SME strategies, networking and industrial relations: evidence on innovation drivers in industrial districts," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(2), pages 169-195.
    26. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    27. Ben Arfi, Wissal & Hikkerova, Lubica & Sahut, Jean-Michel, 2018. "External knowledge sources, green innovation and performance," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 210-220.
    28. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    29. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-379, June.
    30. Vanessa Oltra & Maïder Saint Jean, 2009. "Sectoral systems of environmental innovation: an application to the French automotive industry," Post-Print hal-00274413, HAL.
    31. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    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. Luigi Aldieri & Maxim Kotsemir & Concetto Paolo Vinci, 2020. "The role of environmental innovation through the technological proximity in the implementation of the sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 493-502, February.
    2. Kunapatarawong, Rasi & Martínez Ros, Ester, 2014. "A resource pool for environmental innovation," DEE - Working Papers. Business Economics. WB wb140301, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    3. Ghisetti, Claudia & Marzucchi, Alberto & Montresor, Sandro, 2015. "The open eco-innovation mode. An empirical investigation of eleven European countries," Research Policy, Elsevier, vol. 44(5), pages 1080-1093.
    4. Enrique Acebo & José‐Ángel Miguel‐Dávila & Mariano Nieto, 2021. "External stakeholder engagement: Complementary and substitutive effects on firms' eco‐innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2671-2687, July.
    5. Amandine Pinget & Rachel Bocquet, 2017. "Spécificités des sources de connaissances pour l'innovation environnementale des PME," Post-Print hal-01699651, HAL.
    6. 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.
    7. 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.
    8. 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.
    9. Elisenda Jové‐Llopis & Agustí Segarra‐Blasco, 2018. "Eco‐innovation strategies: A panel data analysis of Spanish manufacturing firms," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1209-1220, December.
    10. Solnørdal, Mette Talseth & Thyholdt, Sverre Braathen, 2019. "Absorptive capacity and energy efficiency in manufacturing firms – An empirical analysis in Norway," Energy Policy, Elsevier, vol. 132(C), pages 978-990.
    11. Peiró-Signes, Ángel & Segarra-Oña, Marival & Trull-Domínguez, Óscar & Sánchez-Planelles, Joaquín, 2022. "Exposing the ideal combination of endogenous–exogenous drivers for companies’ ecoinnovative orientation: Results from machine-learning methods," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    12. 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.
    13. María Teresa Costa‐Campi & Néstor Duch‐Brown & José García‐Quevedo, 2019. "Innovation strategies of energy firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(5), pages 1073-1085, September.
    14. Orsatti, Gianluca & Pezzoni, Michele & Quatraro, Francesco, 2017. "Where Do Green Technologies Come From? Inventor Teams’ Recombinant Capabilities and the Creation of New Knowledge," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201711, University of Turin.
    15. Gilli, Marianna & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Innovation complementarity and environmental productivity effects: Reality or delusion? Evidence from the EU," Ecological Economics, Elsevier, vol. 103(C), pages 56-67.
    16. Alexandra Rese & Anke Kutschke & Daniel Baier, 2016. "Analyzing The Relative Influence Of Supply Side, Demand Side And Regulatory Factors On The Success Of Collaborative Energy Innovation Projects," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-43, February.
    17. Caroline Mothe & Uyen T. Nguyen-Thi & Ángela Triguero, 2018. "Innovative products and services with environmental benefits: design of search strategies for external knowledge and absorptive capacity," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(11), pages 1934-1954, September.
    18. Costa-Campi, M.T. & García-Quevedo, J. & Martínez-Ros, E., 2017. "What are the determinants of investment in environmental R&D?," Energy Policy, Elsevier, vol. 104(C), pages 455-465.
    19. Elisenda Jové‐Llopis & Agustí Segarra‐Blasco, 2020. "Why does eco‐innovation differ in service firms? Some insights from Spain," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 918-938, March.
    20. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.

    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:28:y:2019:i:6:p:1045-1059. 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.