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The Effect of Open Innovation on Eco-Innovation Performance: The Role of Market Knowledge Sources

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  • Fernando Sanchez-Henriquez

    (Facultad de Economía y Negocios, Universidad del Desarrollo, Santiago 7610658, Chile)

  • Ignacio Pavez

    (Facultad de Economía y Negocios, Universidad del Desarrollo, Santiago 7610658, Chile)

Abstract

Organizations use multiple strategies to increase the number and impact of eco-innovations as a path to achieve competitive advantage. In this article, we study the role of open innovation activities, specifically related to market sources, as a driver of eco-innovation performance. While studies have looked at the relationship between these two emergent innovation phenomena from a broad perspective, we explore whether specific market knowledge sources—clients, suppliers, competitors, and consultants—and their combined use—affect eco-innovation performance. We rely on insights from theories of open innovation and sustainable and environmental innovation to build a theoretical framework about the determinants of eco-innovation performance from a market-driven open innovation perspective. Our sample consists of 3047 firm-year observations obtained from three consecutive panels of the Chilean Innovation Survey (2009–2014). We found that clients, suppliers, competitors, and consultants as knowledge sources positively influence eco-innovation performance in firms. In addition, our results suggest that a combination of client sourcing with supplier and consultant sources of knowledge positively affect eco-innovation performance. We discuss the implications of our findings for open innovation activities on eco-innovation and suggest ideas for future research.

Suggested Citation

  • Fernando Sanchez-Henriquez & Ignacio Pavez, 2021. "The Effect of Open Innovation on Eco-Innovation Performance: The Role of Market Knowledge Sources," Sustainability, MDPI, vol. 13(7), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3890-:d:527939
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    2. Hoang Thu Thao & Xuemei Xie, 2024. "Fostering green innovation performance through open innovation strategies: do green subsidies work?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18641-18671, July.
    3. Lu Cheng, 2022. "The Effects of Open Innovation at the Network Level," Sustainability, MDPI, vol. 14(23), pages 1-23, November.
    4. Francisco Antunes & Leandro F. Pereira & Álvaro L. Dias & Rui Vinhas Silva, 2023. "Flexible labour policies as competitive advantage," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(4), pages 563-590, December.
    5. Torrecillas, Celia & Fernández, Sara & García-García, Claudia, 2023. "Drivers to increase eco-efficiencies in Uruguay, Peru, and Panama," Energy Policy, Elsevier, vol. 183(C).

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