Abstract
This chapter objective is to provide a broad understanding of the role and impact of green innovations and green practices in green supply chains. Green supply chains are an extension of ordinary supply chains. Green innovations and green practices function as key antecedents in transforming an ordinary supply chain into a green supply chain. Effective green supply chains apply a coordinated triple bottom-line (TBL) approach to simultaneously realize environmental, economic, and social goals in supply chain operations. External and internal factors play an instrumental role in the adoption of green innovations and green practices in supply chains’ operations. Some of the factors are changing consumer demand, government regulations and institutional pressures, technological innovations, and stakeholders’ attitude toward long-term environment sustainability. A review of green supply chain management literature shows that when businesses integrate green innovations and green practices in their supply chains, they achieve encouraging triple bottom-line outcomes. Transparency and truthful compliance to green innovations and practices in supply chain operations are some of the biggest challenges in green supply chains.
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Appendix A: International Focus on Green Innovations
Appendix A: International Focus on Green Innovations
Study (author) | Research context | Country/industry | Findings |
|---|---|---|---|
The influence of green innovation performance on corporate advantage in Taiwan (Chen et al. 2006) | The correct evaluation and position for green innovation. The influence of green innovation performance on the corporate advantage | Taiwan/information and electronic industries | Significant differences in the performance of green product innovation and the performance of green process innovation in information and electronics industries in Taiwan |
The driver of green innovation and green image-green core competence (Chen 2008) | The issues of environmental management and core competence, which respond to the new concept of “green management” carrying both aspects of environmental protection and economy development | Taiwan/information and electronic industries | Green core competence, green product innovation performance, green process innovation performance, and green images of SMEs depend on firm size |
Salient stakeholder voices: family business and green innovation adoption (Huang et al. 2009) | The relationship between various stakeholder pressure perceived by the managers and their decision to adopt green technical and administrative innovations | Taiwan | The positive relationship between the degree of natural environmental pressure from stakeholders and a firm’s decision to adopt green innovations |
The drivers for contractors’ green innovation: an industry perspective (Qi et al. 2010) | Key factors influencing contractors to adopt green construction practices: government environmental regulations, managerial concern, project stakeholder pressure, and size of firms | China/contractor industry | Managerial concerns and government regulatory pressures are the two most important driving forces for the adoption of green construction practices Significant relationships between government regulations and business size with the adoption of green construction practices |
Mainstreaming green product innovation: why and how companies integrate environmental sustainability (Dangelico and Devashish 2013) | Insights on multifaceted nature of green product innovation process involving both micro- and macro-environmental issues | Italy, Canada/small- to medium-sized manufacturing companies | Three key environmental dimensions of green product innovation such as energy minimization, material reduction, and pollution prevention. The green product development process, innovativeness of green products (radical versus incremental), and life cycle analysis as a tool for measuring environmental impact at each of stage of green products |
Integrating suppliers into green product innovation development: an empirical case study in the semiconductor industry (Lee and Kim 2011) | The role of suppliers in enhancing the manufacturer’s ability to carry out green innovation in product development successfully | Korea/semiconductor industry | Regulations and legislation are major factors behind the promotion of environmental management and green innovation by companies. Two important factors for GPI: coordination and alignment with project teams and effective communication with suppliers |
The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan (Chiou et al. 2011) | Relations between greening the supply chain, green innovation, environmental performance, and competitive advantage that helps to encourage companies to improve their environmental performance and to enhance their competitive advantage in the global market | Taiwan/eight industry sectors | Greening the supplier through green innovation contributes significant benefits to the environmental performance and competitive advantage of the firm |
The influence of corporate environmental ethics on competitive advantage: the mediation role of green innovation (Chiou 2011) | The relations between corporate environmental ethics, competitive advantage, and green product and process innovation that plays a mediation role | Taiwan/manufacturing industry | The corporate environmental ethics can not only affect competitive advantage directly but also influence it indirectly via green product innovation in the Taiwanese manufacturing industry |
The impact of green product innovation on firm performance and competitive capability: the moderating role of managerial, environmental concern (Ar Ilker 2012) | Relations between green product innovation, firm performance, and competitive capability and on the moderating role of managerial, environmental concern in this relation | Turkey/manufacturer firms from various sectors | Green product innovation significantly positively affects both firm performance and competitive capability. Managerial, environmental concern only moderates the relationship between green product innovation and firm performance |
Origins of green innovations: the differences between proactive and reactive green innovations (Chen et al. 2012) | The origins of the two types of green innovations: proactive and reactive green innovations | Taiwan/Optronics Corp. | Two types of green innovations: proactive and reactive green innovations, considering their origins. Both of the internal origins (environmental leadership, environmental culture, and environmental capability and the external origins) and the environmental regulations and the environmentalism of investors and clients can generate reactive green innovation. Only the internal origins can facilitate proactive green innovation |
The influence of green product competitiveness on the success of green product innovation: empirical evidence from the Chinese electrical and electronics industry (Wong 2012) | The article addresses the gap in green innovation theory concerning the associations among the key constructs of green innovation causal chain | China/electrical and electronics industry | Green product innovation has a positively stronger influence on both green product competitive advantage and green new product success than green process innovation |
Market demand, green product innovation, and firm performance: evidence from Vietnam motorcycle industry (Lin et al. 2013) | Correlations between market demand, green product innovation, and firm performance in the context of Vietnamese motorcycle industry | Vietnam/motorcycle industry | Market demand is positively correlated to both green product innovation and firm performance, while green product innovation performance is also positively correlated with firm performance. Effect of three types of green product innovation on market demand and firm performance |
Antecedents and consequences of green innovation in the wine industry: the role of channel structure (Leender and Chandra 2013) | The internal vs. external drivers of green innovation, the effect of green innovation on business performance, and the role of channel structures in making green innovation more productive regarding business performance | USA and Canada, South Africa, and Australia and New Zealand/wine industry | Internal drivers, i.e., environmental management and quality management, in particular, play a greater role than external drivers (e.g., government and regulatory pressures) on the adoption of green innovation strategies. Producing and using organic products and processes and recycling activities have a significant direct positive impact on business performance |
Improving performance of green innovation practices under uncertainty (Tseng et al. 2013) | The green managerial, process, product, and technology innovation aspects in Taiwanese computer products industry | Taiwan/computer products industry | The appropriate green innovation aspects and criteria for the case firms evaluate the weights of the aspects and criteria as described by linguistic preferences and use an analytical network process with entropy weights to evaluate the proposed framework |
The effects of greening the supplier and innovation on environmental performance and competitive advantage: original research (Van Den Berg et al. 2013) | The relationship between greening the supplier, green innovation, environmental performance, and competitive advantages in companies in the City of Johannesburg metropolitan municipality region | South Africa/companies in the City of Johannesburg | The green innovative process has a significant effect on environmental performance. Greening the supplier will initiate greener product innovation, and green managerial innovation has a significant correlation with a competitive advantage. The greening of suppliers using green innovation leads to enhanced environmental performance and competitive advantages |
Environmental requirements, knowledge sharing and green innovation: empirical evidence from the electronics industry in China (Wong 2013) | Develo** an integrative model that explores the determinants of green innovation with a focus being placed on knowledge sharing | China/electronics industry | Knowledge sharing mediates the relationship between green requirements and new green product success as well as that of green requirements and green product and process innovations. The direct positive impact of knowledge sharing is the strongest on green process innovation |
Drivers of different types of eco-innovation in European SMEs (Triguero et al. 2013) | The influence of several factors as collaboration with research institutes, supply-side, demand-side, and regulatory factors. The multivariate estimations considered allow showing potential complementarities across the three types of eco-innovation as well as differences across sectors and countries | 27 European countries | Collaboration with research institutes, agencies, and universities is a significant factor. Supply-side factors are a more important driver for environmental processes and organizational innovations than for environmental product innovations. Market share has a significant positive influence on eco-product and eco-organizational innovations, while cost-savings are significant for eco-process innovations |
The link between eco-innovation and business performance: a Taiwanese industry context (Cheng et al. 2014) | Interrelationships among three types of eco-innovation and their relative impact on business performance | Taiwan | Eco-organizational innovation has the strongest effect on business performance. Eco-process and eco-product innovations partially mediate the effects of eco-organizational innovation, and eco-product innovation mediates eco-process innovations’ effects on business performance. Business performance is directly and indirectly affected by eco-organizational, eco-process, and eco-product innovations |
Impact of green innovation on labor productivity and its determinants: an analysis of the Korean manufacturing industry (Woo et al. 2014) | The impact of green innovation on labor productivity and the determinants of green innovation | Korea/manufacturing industry | GI intended for both firm and customer benefits has a positive effect on labor productivity. There are significant differences in aggregate green innovations depending on different firm sizes and industries |
Can political capital drive corporate green innovation? Lessons from China (Lin et al. 2013) | The factors influencing firms’ GI under a new theoretical framework, combining the stakeholder theory and the RBV, and providing new insights that help clarify relationships among them | China/private manufacturing firms | Political capital plays a significant but negative role in firms’ green product and process innovation performance; both regulations and suppliers positively promote GI in product and process; consumers are positively related to green product innovation but negatively related to green process innovation; and competitions do not have any significant effects on both green product and process innovation |
Drivers of green innovation and non-green innovation: empirical evidence in low-tech SMEs (Cuerva et al. 2014) | The main drivers of eco-innovation in SMEs. The differences between the factors influencing “green” and/or “non-green” innovations for SME in a low-tech sector | Spain/low-tech sector | Technological capabilities such as R&D and human capital foster the conventional innovation but not the GI. The implementation of QMS and differentiation explain only the adoption of innovative green activities. Higher implementation of voluntary scheme certifications such QMS would be more effective to enhance eco-innovation than public subsidies |
Creating technological innovation via green supply chain management: an empirical analysis (Lee et al. 2014) | The relationship between GSCM practices and TI from the perspective of a develo** nation | Malaysia/manufacturing firms | The significant positive relationship between three GSCM practices (i.e., internal environmental management, eco-design, and investment recovery) and TI, green purchasing, and cooperation with customers does not have a significant positive correlation with TI. The importance of GSCM practices has been proven to enhance firms’ TI, in addition to improving the environment, bringing about a positive impact on the manufacturing establishment |
Green innovation adoption in automotive supply chain: the Malaysian case (Zaelani et al. 2015) | The determinants of green innovation adoption and its effect on firm performance | Malaysia/automotive industry | Environmental regulations, market demand, and firm internal initiatives have a positive effect on green innovation initiative (GII), while GIIs have a positive effect on the three categories of sustainable performance (i.e., environmental, social, and economic) |
Taking risks in the face of uncertainty: an exploratory analysis of green innovation (Roper and Tapinos 2016) | The article focuses on how firms’ perceptions of environmental uncertainty and their perceptions of the risks involved impact on their willingness to undertake GI | UK/food industry | Firms’ probability of undertaking green innovating is positively related to both environmental uncertainty and the market-related risks of innovation |
Barriers to green innovation initiatives among manufacturers: the Malaysian case (Abdullah et al. 2016) | The internal and external barriers to green innovation initiatives among Malaysian manufacturers | Malaysia/manufacturing industry | The barriers to GI are a useful concept to prioritize innovation policies |
The impact of legitimacy pressure and corporate profitability on green innovation: Evidence from China top 100 (Li et al. 2017) | The influence of external legitimacy pressure and internal corporate profitability and their interaction on green innovation | China/the top 100 listed companies | Legitimacy pressure from stakeholders has a significantly positive influence on both corporate green product innovation and process innovation. Corporate profitability positively affects green product innovation, while there was found to be no significant influence on green process innovation. Moreover, corporate profitability positively moderates the relationship between legitimacy pressure and green product innovation |
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Burki, U. (2018). Green Supply Chain Management, Green Innovations, and Green Practices. In: Qudrat-Ullah, H. (eds) Innovative Solutions for Sustainable Supply Chains. Understanding Complex Systems. Springer, Cham. https://doi.org/10.1007/978-3-319-94322-0_4
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