Innovation Strategy and Firm Competitiveness: A Framework to Support the Holistic Integration of Eco-Innovation

Abstract

Although a plethora of authors have investigated the association between eco-innovation activities and firm competitiveness, the results of these studies remain inconsistent. However, very few papers take a systemic perspective. Hence, we examine the interactions between all the components of eco-innovation strategy: holistic engagement, technological innovation focus, organisational adaptation, open innovation, peculiarities of firm size. Based on data from the 2015 Community Innovation Survey conducted in Belgium and the BELFIRST database, we apply OLS and 2SLS regression models. The findings address inconsistencies in the literature by demonstrating that the outcomes of a well-managed eco-innovation strategy are better than the sum of its components. A holistic approach of eco-innovation can strengthen the competitive position of the firm. Moreover, the systemic view and the consideration of a firm's size-related characteristics permit us to draw a theoretical framework for the holistic and competitive integration of eco-innovation. It offers significant strategic guidance for managers.