Does a firm’s innovation category matter in practising eco-innovation? Evidence from the lens of Malaysia companies practicing green technology

Abstract

Purpose – The purpose of this paper is to investigate different types of innovations and their effects on eco-innovation practices by firms practicing green technology in Malaysia. Design/methodology/approach – This paper collected data via postal and online surveys. The population frame for this study was obtained from the External Trade Development Corporation directory 2010 and the MyHijau Directory published in 2013. Surveys were distributed to the top management of green technology companies. Findings – Based on the reflections from the managers who participated in the survey, this study found that environmental compliance has become a critical issue and lack of enforcement can no longer be ignored. Despite that fact that eco-innovation inspection activities to comply with environmental regulations are carried out periodically by the studied firms, the challenges in deploying the latest green technologies and their potential benefits have remain evident. Often, a shortage of resources has restricted firms in setting up in-house research and development units. Practical implications – The findings of this study lead to the suggestion that firms practicing green technology should engage in an information-sharing culture with key suppliers regarding the latest know-how and technological developments. Among the recommendations are that firms should engage employees, customers, suppliers and competitors through co-production. This engagement will help improve product marketability, lean production processes and the design of desired green products. Originality/value – This study investigated the level of eco-innovation practices for each dimension of its construct and compared that level to the different stages of firm innovation. The results will fill in the gaps in the literature because previous studies only focused on theory testing and modelling of eco-innovation from a multidisciplinary approach.