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Innovation Capacity and the Implementation of Eco‐innovation: Toward a Contingency Perspective
Author(s) -
Tsai KuenHung,
Liao YiChuan
Publication year - 2017
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.1963
Subject(s) - contingency , eco innovation , industrial organization , business , subsidy , contingency theory , government (linguistics) , induced innovation , sample (material) , marketing , perspective (graphical) , economics , technological change , sustainability , management , computer science , market economy , ecology , philosophy , linguistics , chemistry , macroeconomics , chromatography , artificial intelligence , biology
Abstract This study develops a framework by drawing on the perspectives of contingency theory to investigate how innovation capacity affects eco‐innovation. The examination covers four moderators, including customer requirement, export destination, environmental regulation and government subsidy, and focuses on the types of eco‐innovation concerning pollution and waste. A sample of 2964 manufacturing firms from the Taiwanese Technological Innovation Survey is utilized to test the hypotheses. A moderated hierarchical logit method is adopted to analyze the data. The results overall suggest that the effect of innovation capacity on eco‐innovation depends on the levels of the four moderators. Specifically, the results show that innovation capacity has different effects on eco‐innovation when customers have a demand for eco‐innovation, export markets have high environmental awareness, future environmental regulations are expected, and the government provides a subsidy for environmental innovation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment