IDEAS home Printed from https://ideas.repec.org/p/udf/wpaper/201115.html
   My bibliography  Save this paper

Are Environmental Innovations Embedded within High-Performance Organizational Changes?

Author

Listed:
  • Massimiliano Mazzanti

    ()

  • Davide Antonioli

    ()

  • Susanna Mancinelli

    ()

Abstract

Many scholars have highlighted the role of high performance work practices (HPWP) and Human Resource Management (HRM) as contents of organizational change that integrate with green business strategies, mainly in the realm of the ‘Porter paradigm of change’ and competitive advantage. We investigate whether manufacturing firms, in light of the challenges that the path to a ‘Green economy’ poses, have given heavier weight in most recent times to internal sources of environmental innovation (EI) that refer to structural mechanisms of organizational change. More specifically, we analyse how the complementarity between different performance oriented strategies such as training and organizational innovations of labor and production can (jointly) foster the adoption of relatively more radical innovations, as environmental ones are. We use an original dataset on 555 Italian industrial firms on EI and high performance work practices, coherent with the last CIS5 survey, to analyse whether various, more or less radical, forms of environmental innovations are correlated to complementarity investments in HPWP/HRM. Empirical evidence shows that the strict complementarity assumption is not valid as a general rule for the HPWP/HRM strategies we analyse. We indeed find that trade offs (substitutability) is present when training competencies and organizational change in production are investigated. Weaknesses in organizational change processes are then highlighted for the sake of management restructuring. Sector specificity and market conditions eventually matter: the only case where we do find strict complementarities in organizational change is for CO2 abatement, a relatively more radical type of EI, but when we restrict the sample to more polluting (and regulated) firms. This evidence is coherent with the Porter hypothesis: complementarity related adoption of EI is an element of organizational change in firms that are subject to more stringent regulations. The fact that strict complementarity is not a diffused factor behind the adoption of all environmental innovations does not come indeed at a surprise. At this stage of development of green strategies, the share of eco-firms is still limited even in advanced countries that are seeking for new competitiveness tools. Market Leaders do find innovations sources mainly ‘outside’ the boundaries instead of reshaping organizations along complementary green lines. The integration of EIs with the internal capabilities and firm’s own assets is far from being reached even in advanced and competitive industrial settings.

Suggested Citation

  • Massimiliano Mazzanti & Davide Antonioli & Susanna Mancinelli, 2011. "Are Environmental Innovations Embedded within High-Performance Organizational Changes?," Working Papers 201115, University of Ferrara, Department of Economics.
  • Handle: RePEc:udf:wpaper:201115
    as

    Download full text from publisher

    File URL: http://out.economia.unife.it/uploads/dip_deit/quaderni/201115.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2011. "Enviromental Innovations, Complementarity and Local/Global Cooperation," Working Papers 201104, University of Ferrara, Department of Economics.
    2. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
    3. 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.
    4. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    5. Fredrik Tell, 2006. "John Roberts, The Modern Firm: Organizational Design for Performance and Growth," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(4), pages 455-458, November.
    6. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    7. Lynch, Lisa M., 2007. "The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy," IZA Discussion Papers 2819, Institute for the Study of Labor (IZA).
    8. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    9. Keld Laursen & Nicolai J. Foss, 2003. "New human resource management practices, complementarities and the impact on innovation performance," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 243-263, March.
    10. Mazzanti, Massimiliano & Zoboli, Roberto, 2009. "Environmental efficiency and labour productivity: Trade-off or joint dynamics? A theoretical investigation and empirical evidence from Italy using NAMEA," Ecological Economics, Elsevier, vol. 68(4), pages 1182-1194, February.
    11. David J. Teece, 2008. "Firm organization, industrial structure, and technological innovation," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 11, pages 265-296 World Scientific Publishing Co. Pte. Ltd..
    12. Leiponen, Aija, 2005. "Skills and innovation," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 303-323, June.
    13. Arundel, A & Kemp, Rene, 2009. "Measuring eco-innovation," Working Papers 10062, University of Tasmania, Tasmanian School of Business and Economics, revised 30 Aug 2010.
    14. Susanna Mancinelli & Massimiliano Mazzanti, 2009. "Innovation, networking and complementarity: evidence on SME performances for a local economic system in North-Eastern Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 567-597, September.
    15. 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.
    16. Nicholas Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2010. "Modern Management: Good for the Environment or Just Hot Air?," Economic Journal, Royal Economic Society, vol. 120(544), pages 551-572, May.
    17. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    18. Anthony Arundel & Edward Lorenz & Bengt-Åke Lundvall & Antoine Valeyre, 2007. "How Europe's economies learn: a comparison of work organization and innovation mode for the EU-15," Industrial and Corporate Change, Oxford University Press, vol. 16(6), pages 1175-1210, December.
    19. 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.
    20. Schmiedeberg, Claudia, 2008. "Complementarities of innovation activities: An empirical analysis of the German manufacturing sector," Research Policy, Elsevier, vol. 37(9), pages 1492-1503, October.
    21. Harvie Ramsay & Dora Scholarios & Bill Harley, 2000. "Employees and High-Performance Work Systems: Testing inside the Black Box," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 501-531, December.
    22. Casey Ichniowski, 1990. "Human Resource Management Systems and the Performance of U.S. Manufacturing Businesses," NBER Working Papers 3449, National Bureau of Economic Research, Inc.
    23. Jeroen Bergh & Sigrid Stagl, 2003. "Coevolution of economic behaviour and institutions: towards a theory of institutional change," Journal of Evolutionary Economics, Springer, vol. 13(3), pages 289-317, August.
    24. Galia, Fabrice & Legros, Diego, 2004. "Complementarities between obstacles to innovation: evidence from France," Research Policy, Elsevier, vol. 33(8), pages 1185-1199, October.
    25. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    26. Bocquet, Rachel & Brossard, Olivier & Sabatier, Mareva, 2007. "Complementarities in organizational design and the diffusion of information technologies: An empirical analysis," Research Policy, Elsevier, vol. 36(3), pages 367-386, April.
    27. repec:dau:papers:123456789/10093 is not listed on IDEAS
    28. Francesco Brioschi & Maria Sole Brioschi & Giulio Cainelli, 2002. "From the industrial district to the district group: An insight into the evolution of capitalism in italy1," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1037-1052.
    29. Cole, Matthew A. & Elliott, Robert J.R. & Strobl, Eric, 2008. "The environmental performance of firms: The role of foreign ownership, training, and experience," Ecological Economics, Elsevier, vol. 65(3), pages 538-546, April.
    30. Jean BELIN (GREThA, CNRS, UMR 5113) & Jens HORBACH (University of Applied Sciences Augsburg) & Vanessa OLTRA (GREThA, CNRS, UMR 5113), 2011. "Determinants and Specificities of Eco-innovations – An Econometric Analysis for the French and German Industry based on the Community Innovation Survey," Cahiers du GREThA 2011-17, Groupe de Recherche en Economie Théorique et Appliquée.
    31. Wagner, Marcus, 2008. "Empirical influence of environmental management on innovation: Evidence from Europe," Ecological Economics, Elsevier, vol. 66(2-3), pages 392-402, June.
    32. Alex Bryson & John Forth & Simon Kirby, 2005. "High-Involvement Management Practices, Trade Union Representation And Workplace Performance In Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 451-491, July.
    33. Conti, Gabriella, 2005. "Training, productivity and wages in Italy," Labour Economics, Elsevier, vol. 12(4), pages 557-576, August.
    34. Zwick, Thomas, 2004. "Employee participation and productivity," Labour Economics, Elsevier, vol. 11(6), pages 715-740, December.
    35. Kemp, René & Pontoglio, Serena, 2011. "The innovation effects of environmental policy instruments — A typical case of the blind men and the elephant?," Ecological Economics, Elsevier, vol. 72(C), pages 28-36.
    36. Janod, Veronique & Saint-Martin, Anne, 2004. "Measuring the impact of work reorganization on firm performance: evidence from French manufacturing, 1995-1999," Labour Economics, Elsevier, vol. 11(6), pages 785-798, December.
    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. Cainelli, Giulio & D’Amato, Alessio & Mazzanti, Massimiliano, 2015. "Adoption of waste-reducing technology in manufacturing: Regional factors and policy issues," Resource and Energy Economics, Elsevier, vol. 39(C), pages 53-67.
    2. Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2012. "Green innovations and organisational change: making better use of environmental technology," CEPR Discussion Papers 9055, C.E.P.R. Discussion Papers.
    3. 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.
    4. Massimiliano Mazzanti & Davide Antonioli & Francesco Nicolli & Marianna Gilli, 2013. "Information Technology, Environmental Innovations and Complementarity Strategies," Working Papers 2013132, University of Ferrara, Department of Economics.

    More about this item

    Keywords

    environmental innovations; complementarity; HRM; HPWP; training; innovation survey; manufacturing firms; Porter hypothesis;

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:udf:wpaper:201115. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alberto Benati). General contact details of provider: http://edirc.repec.org/data/deferit.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.