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Drivers of eco-innovation in the manufacturing sector of Nigeria

Maruf Sanni () and Michael Francis

No 2017-03, Globelics Working Paper Series from Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management

Abstract: In Nigeria, the manufacturing sector has the potential to make significant contribution to the economy by creating jobs, generate wealth and drastically reduce the level of poverty. However, the sector has not lived up to expectation in recent years. Virtually all major companies in Nigeria provide their own electricity through diesel generators with implications for greenhouse gas emissions. Fortunately, the manufacturing sector also has the potential to be the driving force for overcoming the challenges of technological and environmental changes but only when the production process is integrated within the concept of eco-innovation. This paper therefore investigates the determinants of eco-innovation in the manufacturing sector of Nigeria based on empirical data from the Nigerian 2005-2007 national innovation survey. Using binary logistic regression, the study reveals that important drivers of eco-innovation in the manufacturing sector of Nigeria are innovation persistence, regulatory framework, cost savings from material and energy use. Collaboration with the public research institute` comes up as important sources of knowledge for eco-innovation. Our article brings to the fore the importance of innovation leadership or persistence as a veritable innovation management strategies that could help firms become a leader in the green market. These contributions are imperative for the creation and evolution of firm’s competitive advantage in the emerging green market.

Keywords: Eco-innovation; driver; manufacturing sector; firm; innovation persistence; Nigeria. (search for similar items in EconPapers)
Date: 2017
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