Topic: A Systematic Literature Review: National Innovation System’s technical efficiency through Data Envelopment Analysis for recommendations and future research

Global environmental challenges are rapidly emerging as one of
the most important and troubling issues in evolving strategic business, management, manufacturing, and product development. Economic growth is directly dependent on innovation and associated
with environmental damage (Bossle et al., 2016). The governments
implement various enforcement and policies to abate pollution as
the consumers are getting increasingly green-sensitive (Dai and
Zhang, 2017). Thus, this further complicates the roles of firms in
processing and developing new products in accordance with social
and environmental requirements (De Medeiros et al., 2014). As a
Result, there is a rising pressure on the firms to demonstrate proactive environmental behaviour through the enhancement of internal capabilities in the context of eco-innovation.
Every firm has the internal capabilities to attain positive performance (Poorkavoos et al., 2016). Internal capabilities refer to skills for
converting the input into the output and assist the firms to utilise the
external source better (Lee et al., 2001). Internal capabilities enable
the firms to improve their assets constructively (Hao and Song, 2016)
and should be continuous to maintain the competitiveness of a firm
(Joyce and Slocum, 2012). Different firms with different management
teams possess different internal capabilities (Zhou et al., 2015).
Concerning innovation, firms with sufficient internal capabilities
have the opportunity to innovate successfully (Subrahmanya, 2015).
Nevertheless, Zhou et al. (2015) discovered that firms with higher
capabilities perform worse in certain conditions, suggesting that
firms should be able to ascertain the right internal capabilities that
may lead to better eco-innovation performance.
Eco-innovation is an innovation to reduce a firm’s impact on the
environment, permitting the firm to achieve environmental goals
and integrate green growth benefits (Wong et al., 2013). Moreover,
Figge and Hahn (2012) highlighted that sustainable strategies aim
to use less environmental resources per unit of production to
achieve efficient use of green resources, illustrating a reflection on
the idea of eco-efficiency. To achieve such concept, numerous efforts such as regulatory pressure, a non-governmental organisation
pressure, and customer pressure have been directed towards the
companies to motivate them to adopt eco-innovation. Various
campaigns have also emerged to educate awareness regarding
environmental issues among consumers (Hojnik and Ruzzier,
2016a). The companies must deal with environmental challenges
to avoid environmental damages and to secure their reputation
despite it seems complex (Bossle et al., 2016).
Eco-innovation issues continue to attract the attention of firms,
governments, and scholars as the means of achieving sustainable
development goals (Tamayo-Orbegozo et al., 2016) and decreasing
environmental costs and impacts (Cai and Zhou, 2014). It is insufficient by merely adopting and executing sustainability strategy to
engage in environmental management (Wijethilake, 2017). Instead,
firms must be able to modify their business models to seize the opportunities in green growth (Chang and Chen, 2012) in the context of
the current environment (Chassagnon and Haned, 2015). Reconfiguring a successful business model of in a company requires the right
combination of capabilities (Battistella et al., 2017). Proactive firms or
pioneers on eco-innovation strategies are revealed to grasp and sustain competitive advantages (Albort-Morant et al., 2016; Chen et al.,
2016; Ryszko, 2016a,b). Thus, firms should examine and ascertain
the appropriate capabilities that translate proactive environmental
strategy into corporate sustainability performance.
On the other hand, some opponents claimed that corporate
environmental management is an avoidable and insignificant investment and misinterpreted it as destructive to corporate performance (Chang and Chen, 2013). The successful implementation of
sustainable innovation eludes most companies (Fernando and Wah,
2017; Kuratko et al., 2014), whereas several firms struggle to adopt
or embrace eco-friendly reputation (Gabler et al., 2015). In practice,
firms require guidance in systematically managing their efforts to
achieve green goals and constantly improve the green performance
of products and processes (Xavier et al., 2017). Hence, it is essential
to understand the characteristics and details of firms’ internal capabilities on the eco-innovation process.
According to Cai and Zhou (2014), researchers in the field of
innovation, management, and environmental economics seek to
determine the internal and external factors that drive eco-innovation.
In this context, attention to internal capabilities relating to the availability of resourcesisimperative. Thus, people, technology, and knowhow are the most cited examples (de Jesus Pacheco et al., 2016) and
prominent critical determinants (Cainelli et al., 2015). Firms have to
rely on their internal capabilities to create value from available
external resources to maximize their capacity (Chung et al., 2018). The
scenario indicates the requirement to establish literature on internal
capabilities to cope with the dynamic surroundings.
Several literature reviews were conducted by past studies on
certain eco-innovation strategies, models and performance of firms
and environment. These included a review presented by De Medeiros
et al. (2014) regarding critical success factors for green product
innovation involving wide factors without classifying internal or
external factors. Besides that, Karakaya et al. (2014) clarified the
diffusion of eco-innovation, whereas Díaz-García et al. (2015) aimed
to discover the most relevant publications on eco-innovation. Apart
from that, de Jesus Pacheco et al. (2016) further investigated the internal and external factors that affect green innovation in SMEs,
whereas Bossle et al. (2016) studied on the internal and external
influential factors and motivation for firms’ adoption of ecoinnovation. Likewise, Hojnik and Ruzzier (2016b) discovered the
drivers of eco-innovation associated with the phases of development
and diffusion. Nevertheless, the studies focused on broad internal and
external factors but not on the capabilities of the firms. Some factors
may overlap as they appear in various ways in the eco-innovation
strategy of the company (Bossle et al., 2016). Subsequently, Xavier
et al. (2017) explored the diversity of eco-innovations models for
new research, whereas He et al. (2018) provided an overview of ecoinnovation in a corporate environment within a broader context. As
evident from the chronology, the literature on internal factors
focusing on the internal capabilities of the firm is still missing.

Type of service: Academic paper writing
Type of assignment: Article critique
Subject: Economics
Pages/words: 15/8250
Number of Sources: N/A
Academic level: Doctoral
Paper format: APA
Line Spacing: Single
Language Style: UK English

get boom discount

Related Post