IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01485479.html
   My bibliography  Save this paper

Environmental management practices: good or bad news for innovations delivering environmental benefits? The moderating effect of market characteristics

Author

Listed:
  • Naoufel Mzoughi

    (ECODEVELOPPEMENT - Unité de recherche d'Écodéveloppement - INRA - Institut National de la Recherche Agronomique)

  • Gilles Grolleau

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

We examine empirically whether environmental management practices (environmental audits, ISO 14001 standard, etc.) promote (or not) further innovation in the environmental domain. Using a large sample of French firms (N=4114) and three-stage least square (3SLS) model, we find that environmental management practices influence positively the decision of firms to introduce innovations delivering environmental benefits along both the production and consumption cycles. Nevertheless, this positive relation is moderated by market characteristics. The findings indicate that environmental management practices promote (respectively, promote less) further environmental innovations when the market of their main activity is growing (respectively, uncertain or competitive).

Suggested Citation

  • Naoufel Mzoughi & Gilles Grolleau, 2013. "Environmental management practices: good or bad news for innovations delivering environmental benefits? The moderating effect of market characteristics," Post-Print hal-01485479, HAL.
  • Handle: RePEc:hal:journl:hal-01485479
    Note: View the original document on HAL open archive server: https://hal.science/hal-01485479
    as

    Download full text from publisher

    File URL: https://hal.science/hal-01485479/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fariborz Damanpour & Shanthi Gopalakrishnan, 2001. "The Dynamics of the Adoption of Product and Process Innovations in Organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 45-65, January.
    2. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    3. Gilles Grolleau & Naoufel Mzoughi & Sanja Pekovic, 2013. "Is there a relationship between workplace atmosphere and innovation activities? An empirical analysis among French firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(6), pages 566-580, September.
    4. Gilles Grolleau & Naoufel Mzoughi, 2005. "Overcomplying for profit," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 6(4), pages 267-269, December.
    5. Ming-yuan Chen, 2005. "Technology adoption in response to changes in market conditions: Evidence from the US petroleum refining industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(8), pages 735-756.
    6. Shameek Konar & Mark A. Cohen, 2001. "Does The Market Value Environmental Performance?," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 281-289, May.
    7. Wang, Heli & Chen, Wei-Ru, 2010. "Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity," Research Policy, Elsevier, vol. 39(1), pages 141-154, February.
    8. Ziegler, Andreas & Seijas Nogareda, Jazmin, 2009. "Environmental management systems and technological environmental innovations: Exploring the causal relationship," Research Policy, Elsevier, vol. 38(5), pages 885-893, June.
    9. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    10. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, October.
    11. Martin-Tapia, Inmaculada & Aragon-Correa, Juan Alberto & Senise-Barrio, Maria Eugenia, 2008. "Being green and export intensity of SMEs: The moderating influence of perceived uncertainty," Ecological Economics, Elsevier, vol. 68(1-2), pages 56-67, December.
    12. Nakamura, Masao & Takahashi, Takuya & Vertinsky, Ilan, 2001. "Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 23-52, July.
    13. Wagner, Marcus, 2007. "On the relationship between environmental management, environmental innovation and patenting: Evidence from German manufacturing firms," Research Policy, Elsevier, vol. 36(10), pages 1587-1602, December.
    14. Frondel, Manuel & Horbach, Jens & Rennings, Klaus, 2008. "What triggers environmental management and innovation? Empirical evidence for Germany," Ecological Economics, Elsevier, vol. 66(1), pages 153-160, May.
    15. Giulio Cainelli & Massimiliano Mazzanti & Sandro Montresor, 2012. "Environmental Innovations, Local Networks and Internationalization," Industry and Innovation, Taylor & Francis Journals, vol. 19(8), pages 697-734, November.
    16. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    17. Gilles Grolleau & Naoufel Mzoughi & Sanja Pekovic, 2013. "Is Business Performance Related to the Adoption of Quality and Environmental-Related Standards?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 525-548, April.
    18. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2011. "Does it really pay to be green? Determinants and consequences of proactive environmental strategies," Journal of Accounting and Public Policy, Elsevier, vol. 30(2), pages 122-144, March.
    19. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
    20. Wang, Longwei & Yeung, Jeff Hoi Yan & Zhang, Min, 2011. "The impact of trust and contract on innovation performance: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 134(1), pages 114-122, November.
    21. Darnall, Nicole & Henriques, Irene & Sadorsky, Perry, 2008. "Do environmental management systems improve business performance in an international setting?," Journal of International Management, Elsevier, vol. 14(4), pages 364-376, December.
    22. Kjetil Telle, 2006. "“It Pays to be Green” – A Premature Conclusion?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(3), pages 195-220, November.
    23. Wagner, Marcus, 2008. "Empirical influence of environmental management on innovation: Evidence from Europe," Ecological Economics, Elsevier, vol. 66(2-3), pages 392-402, June.
    24. Yang, Chen-Lung & Lin, Shu-Ping & Chan, Ya-hui & Sheu, Chwen, 2010. "Mediated effect of environmental management on manufacturing competitiveness: An empirical study," International Journal of Production Economics, Elsevier, vol. 123(1), pages 210-220, January.
    25. repec:fth:prinin:455 is not listed on IDEAS
    26. Yalabik, Baris & Fairchild, Richard J., 2011. "Customer, regulatory, and competitive pressure as drivers of environmental innovation," International Journal of Production Economics, Elsevier, vol. 131(2), pages 519-527, June.
    27. Grolleau, Gilles & Mzoughi, Naoufel & Pekovic, Sanja, 2012. "Green not (only) for profit: An empirical examination of the effect of environmental-related standards on employees’ recruitment," Resource and Energy Economics, Elsevier, vol. 34(1), pages 74-92.
    28. Cainelli, Giulio & Mazzanti, Massimiliano, 2013. "Environmental innovations in services: Manufacturing–services integration and policy transmissions," Research Policy, Elsevier, vol. 42(9), pages 1595-1604.
    29. Matthew Potoski & Aseem Prakash, 2005. "Covenants with weak swords: ISO 14001 and facilities' environmental performance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(4), pages 745-769.
    30. Sanja Pekovic, 2010. "The Determinants of ISO 9000 Certification: A Comparison of the Manufacturing and Service Sectors," Journal of Economic Issues, Taylor & Francis Journals, vol. 44(4), pages 895-914.
    31. 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.
    32. Wu, Jie, 2012. "Technological collaboration in product innovation: The role of market competition and sectoral technological intensity," Research Policy, Elsevier, vol. 41(2), pages 489-496.
    33. Hatice Ozer Balli & Bent Sørensen, 2013. "Interaction effects in econometrics," Empirical Economics, Springer, vol. 45(1), pages 583-603, August.
    34. Kozo Horiuchi & Masao Nakamura, 2001. "Environmental Issues and Japanese Firms," Palgrave Macmillan Books, in: Masao Nakamura (ed.), The Japanese Business and Economic System, chapter 13, pages 364-384, Palgrave Macmillan.
    35. Kimitaka Nishitani, 2011. "An Empirical Analysis of the Effects on Firms’ Economic Performance of Implementing Environmental Management Systems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(4), pages 569-586, April.
    36. Rennings, Klaus & Ziegler, Andreas & Ankele, Kathrin & Hoffmann, Esther, 2006. "The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance," Ecological Economics, Elsevier, vol. 57(1), pages 45-59, April.
    37. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    38. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    39. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
    40. Totti Könnölä & Gregory C. Unruh, 2007. "Really changing the course: the limitations of environmental management systems for innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 16(8), pages 525-537, December.
    41. Yang, Ma Ga (Mark) & Hong, Paul & Modi, Sachin B., 2011. "Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 129(2), pages 251-261, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bingqiang Li & Jing Yu & Lei Huang & Jinzhi Li & Changhan Luo, 2021. "Coupling Development of Manufacturing Promotion and Innovation in China," SAGE Open, , vol. 11(4), pages 21582440211, October.
    2. Shanyong Wang & Jun Li & Dingtao Zhao, 2018. "Institutional Pressures and Environmental Management Practices: The Moderating Effects of Environmental Commitment and Resource Availability," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 52-69, January.
    3. Tiberio Daddi & Fabio Iraldo & Francesco Testa & Maria Rosa De Giacomo, 2019. "The influence of managerial satisfaction on corporate environmental performance and reputation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 15-24, January.
    4. 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.
    5. Jesus Lozano Vita & Florence Jacquet & Sophie Thoyer, 2017. "Choix de pratiques des viticulteurs et facteurs comportementaux : une approche par la modélisation multi-objectif," Post-Print hal-02738164, HAL.
    6. Ettien Brou & Diana Magalagiu, 2016. "The environmental management : from firm to business parc. Local authorities’ interests of rescaling [Le management environnemental : de l’entreprise au parc d’activités économiques. Intérêts d’un ," Working Papers hal-02079229, HAL.
    7. Ilija Moric & Jelena Šaković Jovanović & Rajka Đoković & Sanja Peković & Đurđica Perović, 2020. "The Effect of Phases of the Adoption of the Circular Economy on Firm Performance: Evidence from 28 EU Countries," Sustainability, MDPI, vol. 12(6), pages 1-12, March.

    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. 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.
    2. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    3. Gutsche, Gunnar & Ziegler, Andreas, 2019. "Determinants of environmental product and process innovations: New evidence on the basis of European panel data," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203617, Verein für Socialpolitik / German Economic Association.
    4. Brian Chi-ang Lin & Siqi Zheng & Nicolò Barbieri & Claudia Ghisetti & Marianna Gilli & Giovanni Marin & Francesco Nicolli, 2016. "A Survey Of The Literature On Environmental Innovation Based On Main Path Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 596-623, July.
    5. 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.
    6. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    7. Fabio Montobbio & Ilaria Solito, 2018. "Does the Eco‐Management and Audit Scheme Foster Innovation in European Firms?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 82-99, January.
    8. Lorena M. D'Agostino & Rosina Moreno, 2019. "Green regions and local firms' innovation," Papers in Regional Science, Wiley Blackwell, vol. 98(4), pages 1585-1608, August.
    9. 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.
    10. Antonella Biscione & Raul Caruso & Annunziata de Felice, 2021. "Environmental innovation in European transition countries," Applied Economics, Taylor & Francis Journals, vol. 53(5), pages 521-535, January.
    11. Ghisetti,Claudia & Marzucchi,Alberto & Montresor,Sandro, 2013. "Does external knowledge affect environmental innovations? An empirical investigation of eleven European countries," INGENIO (CSIC-UPV) Working Paper Series 201301, INGENIO (CSIC-UPV), revised 23 May 2013.
    12. 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.
    13. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    14. 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.
    15. 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).
    16. Borghesi, Simone & Cainelli, Giulio & Mazzanti, Massimiliano, 2015. "Linking emission trading to environmental innovation: Evidence from the Italian manufacturing industry," Research Policy, Elsevier, vol. 44(3), pages 669-683.
    17. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2011. "Enviromental Innovations, Complementarity and Local/Global Cooperation," Working Papers 201104, University of Ferrara, Department of Economics.
    18. Fabrizi, Andrea & Guarini, Giulio & Meliciani, Valentina, 2018. "Green patents, regulatory policies and research network policies," Research Policy, Elsevier, vol. 47(6), pages 1018-1031.
    19. Ziegler, Andreas & Seijas Nogareda, Jazmin, 2009. "Environmental management systems and technological environmental innovations: Exploring the causal relationship," Research Policy, Elsevier, vol. 38(5), pages 885-893, June.
    20. 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.

    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:hal:journl:hal-01485479. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.