The Dynamic Process of Ambidexterity in Eco-Innovation

Abstract

In recent years, firms’ sustainable management has been considered a key factor in the achievement of profits, but few studies analyze the antecedents and effects of eco-innovation. Our study proposes a model to analyze the factors that affect eco-innovation, as well as eco-innovation’s effects on dynamic ambidexterity. To pursue this goal, we developed a research model with panel data from 449 firms over five years from the telecom industry and tested the model using structural equations and partial least squares (PLS). Our results demonstrate the influence of R&D expenditure on eco-innovation. They show a slightly ordered sequence of exploration and exploitation results, indicating that some equilibrium between the two orientations is necessary. The study thus shows that eco-innovation facilitates ambidexterity in that exploration and exploitation alternate dynamically in the search for economic profit.