Eco-Innovation and Firm Performance: Evidence from South America

Holger Raúl Barriga Medina, Ruben Guevara, Ronald Enrique Campoverde and Milton Ismael Paredes-Aguirre
Additional contact information
Holger Raúl Barriga Medina: Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil P.O. Box 09-01-5863, Ecuador
Ruben Guevara: CENTRUM Católica Graduate Business School, Pontificia Universidad Católica del Perú, Lima 15088, Peru
Ronald Enrique Campoverde: Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil P.O. Box 09-01-5863, Ecuador
Milton Ismael Paredes-Aguirre: Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil P.O. Box 09-01-5863, Ecuador

Sustainability, 2022, vol. 14, issue 15, 1-14

Abstract: Eco-innovation has received a great deal of attention in academia and the business sector because it promotes a firm’s sustainable development and seeks to improve its performance. The prime objective of this study was to analyze the effect of the process, organization, and product eco-innovation on the company’s financial and environmental performance. Using a structural equation model estimated by maximum likelihood and a sample from 214 South American manufacturing companies in Colombia, Ecuador, and Perú, we found that organizational eco-innovation (OE) and process eco-innovation (PCE) are positively and significantly associated with the firm’s environmental and financial performance. In contrast, product eco-innovation (PDE) is not significantly associated with the two types of performance described. Likewise, OE has a significant and positive indirect influence on PDE, environmental performance, and financial performance. These findings suggest that OE and PCE positively affect the firm’s performance. On the contrary, PDE does not have this effect, extending the discussion that eco-innovation is specific to the context of the study.

Keywords: organizational eco-innovation; product eco-innovation; process eco-innovation; environmental performance; financial performance; South America (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/15/9579/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/15/9579/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:15:p:9579-:d:880194

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().