The Impact of Eco-Innovation on Performance Through the Measurement of Financial Resources and Green Patents

Abstract

The main objective of this article is to contribute empirically to the understanding of the impact that eco-innovation has on firms’ financial performance within the framework of the resources-based view. Specifically, eco-innovation is measured by using eco-innovative activities and financial resources applied to eco-innovation to argue that the identification and measurement of certain resources of firms allow companies that are particularly active in investing in eco-innovation to be more competitive. Furthermore, the analysis attempts to ascertain whether firms that own green patents and other characteristics exhibit different level of financial performance than firms without registered green patents. The empirical partial least squares structural equation modeling results indicate a positive relationship between the investment of resources and the financial performance of eco-innovative firms. The effects of involving managers in eco-innovative processes as an environmental capability of firms are also tested.