Good Innovation Capacity, Good Eco-Innovation Performance? From Firms Innovation, Learning Capacity, and Institutional Environment

Berkegui Oubedatou Sinatoko Djibo, Emmanuel Mensah Horsey and Shuliang Zhao ()
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Berkegui Oubedatou Sinatoko Djibo: University of Science and Technology of China
Emmanuel Mensah Horsey: University of Science and Technology of China
Shuliang Zhao: University of Science and Technology of China

Journal of the Knowledge Economy, 2024, vol. 15, issue 1, No 47, 1179-1209

Abstract: Abstract Owing to the growing complexity of environmental consequences of manufacturing firms' traditional internal operations, there is an urgent call for firms’ eco-innovation performance. However, manufacturing firms lack a full understanding of what effective strategies and mechanisms could deliver eco-innovative solutions optimally. Through the organizational and institutional theories, we develop a conceptual model on the effect of innovation capacity, firms learning capacities, regulatory quality, and rule of law on eco-innovation performance. We adopted the cross-sectional survey design to sample data from 479 respondents of 15 manufacturing firms in Porto-Norvo, Cotonou, and Bohicon cities of Benin. The results indicate that firms’ innovation and learning capacities have a positive impact on eco-innovation. We also found that regulatory quality and rule of law had no positive significant moderating effect on the relationship between firms’ learning capacity and eco-innovation. However, rule of law was negative but significantly moderated the relationship. Our study emphasizes the effect of innovation capacity on firms’ learning capacity and how firms’ learning capacity influences eco-innovation. We also emphasize how rule of law indirectly contribute to eco-innovation performance. This theoretical and empirical analysis has received little attention in the eco-innovation literature.

Keywords: Innovation capacity; Firms’ learning capacity; Institutional environment; Eco-innovation (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-023-01120-3

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