Should Automotive Firms Opt Into Green Innovation?

Abstract

In recent years, increasing social, stakeholder, and regulatory pressures have pushed automotive firms to invest in green innovation in an attempt to lower their harmful effects on the environment. They may choose to either put resources into developing green initiatives or further develop their core competencies as a firm. Previous studies find positive correlation between green initiatives: green product innovation, green process innovation, green marketing, and green supply chain management with firm image, sustainable development, and financial performance. The study proposes a model to build a conceptual framework of ideal market and timing conditions when undergoing green innovation as an automotive firm as well as an application and implications of the concepts within the existing market and regulatory environment.