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Environmentally-Oriented Innovative Strategies and Firm Performances in Services. Micro-Evidence from Italy

Author

Listed:
  • Massimiliano Mazzanti

    (University of Ferrara and CERIS-CNR)

  • Giulio Cainelli

    (University of Bari and CERIS-CNR)

  • Roberto Zoboli

    (Catholic University of Milan and CERIS-CNR)

Abstract

This paper aims at analysing the role of the environment in innovative strategies based on firm economic performance indicators such as employment, turnover, and labour productivity growth. We exploit a unique dataset of 773 Italian service firms with 20 or more employees comprising 1993-1995 CIS II data on firm innovation strategic motivations and 1995-1998 data on employment, turnover, and labour productivity from the System of the Enterprise Account (SEA). We specify a Gibrat-like empirical model in which the covariates include firm strategies (innovation and environmental), and a set of other explanatory variables and controls. Our econometric findings show a negative link between environmental motivations and growth in employment and turnover and a consequent not significant effect on labour productivity growth. The effect on employment is partly in line with past evidence and may derive from efficiency improvements (dematerialization processes) which also impact on efficiency by reducing workforce number. It is plausible that the net effect derives from the absence of low skilled employment and a creation of high skilled jobs, as a consequence of increased environmental awareness. The effect on turnover shows a negative impact from environmental innovation strategy, implying either a short-medium effect, possibly balanced in the long run by net benefits in terms of higher added value, or a real negative impact, which may be contingent on the observed period, when environmental strategies where not at the heart of strategic management policies. However, productivity-related effects (the core of performance indicators) are not significant. Mainstream hypotheses related to eventual negative impacts are thus not confirmed, although Porter-like effects and virtuous circles between environmentally strategies and performance do not seem to be present.

Suggested Citation

  • Massimiliano Mazzanti & Giulio Cainelli & Roberto Zoboli, 2007. "Environmentally-Oriented Innovative Strategies and Firm Performances in Services. Micro-Evidence from Italy," Working Papers 2007.104, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2007.104
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    References listed on IDEAS

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    Cited by:

    1. Peñasco, Cristina & del Río, Pablo & Romero-Jordán, Desiderio, 2017. "Analysing the Role of International Drivers for Eco-innovators," Journal of International Management, Elsevier, vol. 23(1), pages 56-71.
    2. Cainelli, Giulio & Mazzanti, Massimiliano & Zoboli, Roberto, 2008. "The Relationship Between Environmental Efficiency and Manufacturing Firm’s Growth," Coalition Theory Network Working Papers 46656, Fondazione Eni Enrico Mattei (FEEM).
    3. Fabio Montobbio & Ilaria Solito, 2015. "Does EMAS foster innovation in European firms? An empirical investigation," SEEDS Working Papers 1615, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2015.
    4. Zornitsa Stoyanova & Hristina Harizanova, 2017. "Analysis of the External Environment of Green Jobs in Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 122-136, March.
    5. Doran, Justin & Ryan, Geraldine, 2012. "Regulation and Firm Perception, Eco-Innovation and Firm Performance," MPRA Paper 44578, University Library of Munich, Germany.
    6. repec:eee:resene:v:49:y:2017:i:c:p:86-98 is not listed on IDEAS
    7. Lucia Crevani & Kristina Palm & Annika Schilling, 2011. "Innovation management in service firms: a research agenda," Service Business, Springer;Pan-Pacific Business Association, vol. 5(2), pages 177-193, June.
    8. Consoli, Davide & Marin, Giovanni & Marzucchi, Alberto & Vona, Francesco, 2016. "Do green jobs differ from non-green jobs in terms of skills and human capital?," Research Policy, Elsevier, vol. 45(5), pages 1046-1060.
    9. Davide Antonioli & Massimiliano Mazzanti, 2009. "Techno-organisational strategies, environmental innovations and economic performances. Micro-evidence from an SME-based industrial district," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 145-168.
    10. Davide Antonioli & Grazia Cecere & Massimiliano Mazzanti, 2018. "Information communication technologies and environmental innovations in firms: joint adoptions and productivity effects," SEEDS Working Papers 1118, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Nov 2018.
    11. Antonietti, Roberto & Marzucchi, Alberto, 2014. "Green tangible investment strategies and export performance: A firm-level investigation," Ecological Economics, Elsevier, vol. 108(C), pages 150-161.
    12. Davide Antonioli & Grazia Cecere & Massimiliano Mazzanti, 2018. "Information communication technologies and environmental innovations in firms: joint adoptions and productivity effects," Post-Print hal-01969350, HAL.
    13. Davide Antonioli & Simone Borghesi & Massimiliano Mazzanti, 2014. "Are Regional Systems Greening the Economy? the Role of Environmental Innovations and Agglomeration Forces," Working Papers 2014.42, Fondazione Eni Enrico Mattei.
    14. Cainelli, Giulio & Mazzanti, Massimiliano, 2013. "Environmental innovations in services: Manufacturing–services integration and policy transmissions," Research Policy, Elsevier, vol. 42(9), pages 1595-1604.
    15. Kruse, Juergen, 2016. "Innovation in Green Energy Technologies and the Economic Performance of Firms," EWI Working Papers 2016-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    16. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2011. "Enviromental Innovations, Complementarity and Local/Global Cooperation," Working Papers 201104, University of Ferrara, Department of Economics.
    17. 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.

    More about this item

    Keywords

    Services; Firm Environmental Strategies; Firm Growth; CIS Survey; Innovation;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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