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The driving forces of process eco-innovation and its impact on performance : insights from Slovenia
Hojnik, Jana ; Ruzzier, Mitja
This study endeavors to explore the driving forces of process eco-innovation and its effect on company performance by adopting an integrative appr oach. We focus on process eco-innovation, which per ...tains to technological and non-technological solutions th at result in a reduction of material and energy cos ts for companies. In this regard, the study sheds light on the drivers and outcomes of process eco-innovation adoption, using data collected from 223 Slovenian companies. The results reveal that certain determinants (i.e., competitive pressure, customer demand, managerial e nvironmental concern, command-and-control instrumen t, and economic incentive instrument) are conducive to the deployment of process eco-innovation. Empirica l evidence reveals competitive pressure as the most i nfluential driving force of process eco-innovation, followed by managerial environmental concern and customer de mand. Effectiveness in spurring process eco-innovat ion is also found to be a command-and-control instrument a nd an economic incentive instrument, while expected benefits do not spur process eco-innovation. Pertai ning to the outcomes of process eco-innovation adop tion, we can conclude that it pays to be eco; process eco-in novation is worthwhile in terms of company profitab ility, growth, and competitive benefits. These findings su ggest several courses of action for both policy mak ers and companies. Hence, we conclude by providing implicat ions for both.
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