Market Demand, Green Innovation, and Firm Performance: Evidence from Hybrid Vehicle Industry

Ru-Jen Lin, Rong-Huei Chen and Thao-Minh Ho
Additional contact information
Ru-Jen Lin: University of Science and Technology, Taiwan
Rong-Huei Chen: University of Science and Technology, Taiwan
Thao-Minh Ho: Chung Hua University, Taiwan

from ToKnowPress

Abstract: Purpose: Despite the stimulating roles of market demand and green issues to green innovation and business success, the relationships among these aspects remains controversial. The lack of the consensus on these links causes a missing research gap in the extant literature. This study aims to examine the mediating effect of green innovation and environmental performance on the relationship between market demand and firm performance in Taiwanese hybrid vehicle industry. Design/methodology/approach: The Taiwanese hybrid vehicle industry was targeted as the main research scope. Using random sampling method, survey questionnaires were distributed to retailers, wholesalers, and component sale firms in the automobile industry through post, e-mails, and fax. The Structural Equation Modeling (SEM) approach was used to test the hypotheses and the theoretical model. Findings: The findings prove the significant impacts between market demand and green innovation as well as environmental performance to firm performance; however, the mediating effects of green innovation and environmental performance remain insufficient. Practical implications: The results strongly suggests firms to make more efforts to understand customer needs and excel their competencies in innovating products and processes in a green manner to better align green innovation initiatives with consumer values to promptly satisfy market demand and achieve more effective competitive advantages. Originality/value: This research is the first of its kind to establish the theoretical model for investigating the links among market demand, green innovation, environmental performance, and firm performance in Taiwanese hybrid vehicle industry, which contributes to the understanding of green issues in this competitive industry. As such, the findings helpfully provide effective guidelines for firms in achieving first-mover advantages, market leadership, and sustainable competitiveness.

Keywords: market demand; green innovation; firm performance; process innovation; product innovation (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
http://www.toknowpress.net/ISBN/978-961-6914-07-9/papers/S6_194-209.pdf full text (application/pdf)

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:tkp:tiim13:s6_194-209

Access Statistics for this chapter

More chapters in Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management from ToKnowPress
Bibliographic data for series maintained by Maks Jezovnik ().