Assessing the economic impacts of eco‐innovation strategies across contexts shaped by different institutional and structural pressures

In the face of escalating environmental challenges, eco‐innovation (EI) has emerged as a crucial strategy for businesses aiming to balance ecological responsibility with economic and social performance. This study explores the impact of various EI strategies on the economic performance of firms, analyzing the contingent effect of both institutional and structural factors in dirty and clean industries. Using data from the Spanish Technological Innovation Panel (PITEC) spanning the period 2009–2016, our findings reveal that context matters for the effectiveness of EI strategies in enhancing economic performance. In stable environments with low institutional pressures, dirty industries benefit from R&D‐centric strategies, whereas in clean industries only efficiency‐centric and ambidextrous strategies yield economic gains. Similarly, in moderate institutional environments, the advantages offered by EI strategies hold for clean and dirty industries; however, ambidextrous EI strategies yield more economic advantages in both industry types. In dynamic environments, proactive strategies such as R&D‐centric and ambidextrous approaches are crucial for both dirty and clean industries. Firms in this situation should thus invest in assets and practices that enhance R&D for EI, as efficiency‐centric strategies are less effective in dynamic contexts. The findings have interesting implications for managers and policymakers, underlining the need for a nuanced approach to supporting and implementing EI initiatives.