Effects of Eco-Innovation on Economic and Environmental Performance: Evidence from Turkey’s Manufacturing Companies

Melek Yurdakul and Halim Kazan
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Melek Yurdakul: Faculty of Economics, Administrative and Social Sciences, International Trade and Finance, Istanbul Gedik University, Istanbul 34876, Turkey
Halim Kazan: Faculty of Economics, Business Management, Istanbul University, Istanbul 34116, Turkey

Sustainability, 2020, vol. 12, issue 8, 1-22

Abstract: The concept of eco-innovation has begun to be considered as a solution to preventing environmental damage, especially since the 1990s. Eco-innovation is expected to reduce amounts of waste, air pollution, and material resource usage. However, the effect of eco-innovation on environmental and financial performance has received limited attention. This paper seeks to fill this gap by studying the effect of eco-innovation on environmental and financial performance. In order to do so, data were obtained by collecting surveys completed by 219 manufacturing companies in Turkey. By using structural equation modeling, we found that eco-innovation has a direct effect on pollution prevention, resource saving and recycling; furthermore, it has an indirect positive effect on cost reduction and thus on economic performance. The findings suggest that decision-makers should adopt eco-innovation due to its cost advantage and pollution prevention potential.

Keywords: eco-innovation; environmental performance; financial performance; manufacturing companies; path analysis; structural equation modeling (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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