Five Drivers of Eco-Innovation

Abstract

Today, firms are faced with a number of environmental challenges such as pollution, scarcity of natural resources, global warming a growing demand for environmentally friendly products. Complexity of sustainability issues in operations management leads this study to determine a parsimonious model of eco-innovation. Most of the research findings have emphasized the effect of innovation on company's economic benefits. However, there are inadequate studies in respect to eco-innovation and its impact to business and environmental sustainability. This paper focuses on determinants of drivers of eco-innovation and its outcome on sustainable business performance. Content analysis is used in order to explain the phenomena of eco-innovation in operations management and categorize the determinants of drivers. The unit of analysis of this study is driver or factor of eco-innovation which are commonly found in entire articles reviewed. The scope of review encompassed articles published between the years 1994 to 2012. Results indicate that a parsimonious model of eco-innovation consists of five drivers. More comprehensive and robust findings could be obtained by testing this model and broadening the scope of study.