Drivers in the Eco-Innovation Road to the Circular Economy: Organiational Capabilities and Exploitative Strategies

Abstract

This article contributes to the empirical literature on the drivers of eco-innovation within the context of an organizational capability and exploitative strategies towards a circular economy. It explores the dynamics of the determinants of eco-innovation. The aim of this study is to contribute to this debate by analyzing evidence regarding the different factors influencing organizational capabilities in “transformative innovation” to support transition while eliminating obstacles to sustainability. The practical contribution of this paper is a consolidated, complete framework of eco-innovation that provides substantial insights to practitioners and facilitates the spread of eco-innovative practices. This study will benefit policy makers, key institutions, and firms to leverage the organizational capability with the effective implementation of eco-innovation processes towards a circular economy, where structural changes and transformative eco-innovation are the main determinants. However, the exploration of eco-innovation dynamics within a circular economy is still widely disregarded, especially concerning the trends and dynamics in policy-making processes and strategy development. The research employed the multi-criteria SAW method. The purpose of the suggested methodology is to establish the criteria for ranking the drivers of eco-innovation adoption. Research findings indicate the nexus between the drivers in eco-innovation and social behavior, eco-design, infrastructural changes, and political approaches. This study provides a comprehensive framework for understanding the drivers of eco-innovation towards a circular economy with regard to organizational capabilities and exploitative strategies.