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How environmental innovation influences firm performance: A meta‐analytic review

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  • Ayça Kubra Hizarci‐Payne
  • İlayda İpek
  • Gülüzar Kurt Gümüş

Abstract

Coupled with the increasing concern toward sustainability and sustainable development issues, environmental innovation practices have been of burgeoning interest among both scholars and practitioners. Building on this, the main purpose of this study is to quantitatively aggregate the extant empirical research on eco‐innovation and firm performance and to assess the role of moderating factors in this theoretical relationship by pursuing a meta‐analytic approach. To serve this objective, 196 effects based upon 70 studies including more than 25,000 firms (N = 25,412) were meta‐analytically examined. Quantitative evidence drawn from the meta‐analysis indicates that organizational eco‐innovation exerts the strongest influence on firm performance. Moreover, the meta‐analytic findings suggest that significant variations in the correlation between eco‐innovation and firm performance exist across different performance types, and the magnitude of the eco‐innovation–firm performance association is stronger in developing compared with developed countries. This meta‐analytic review is expected to considerably contribute to the pertinent literature by means of improving the understanding of the relevance of eco‐innovation typology to firm performance.

Suggested Citation

  • Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:2:p:1174-1190
    DOI: 10.1002/bse.2678
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