Involving purchasing and supply management in open ecological innovation: the moderating role of digital technologies

Abstract

Open Eco-innovation (OEI) is an emerging approach for achieving sustainable development in manufacturing industries. However, studies on internal organisational factors and employee involvement in the development of eco-innovations are lacking. Here, we developed a model to examine whether supply management innovativeness (SMI) and environmental collaboration (EC) with suppliers affect firms’ eco-product and eco-process innovations. The proposed model was tested using data from 328 manufacturers in China. We found that SMI has a direct and positive impact on both eco-product and eco-process innovation. Mediation analysis suggests EC partially mediating this relationship. Additionally, EC had an inverted, U-shaped relationship with eco-products innovation (EPDI)and a positive effect on eco-process innovation (EPCI). While, digital technologies (DT) moderate the relationship between EC and EPDI, they do not affect EPCI. This study presents an opportunity for supply management managers to understand these challenges more comprehensively and add value to the eco-innovation process.