Relationship between eco-innovations and the impact on business performance: an empirical survey research on the Brazilian textile industry

Brasil, Marcus Vinicius de Oliveira; Abreu, Mônica Cavalcanti Sá de; Silva Filho, José Carlos Lázaro da; Leocádio, Aurio Lucio

doi:10.1016/j.rausp.2016.06.003

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Enviromental Management • Rev. Adm. (São Paulo) 51 (3) • Jul-Sep 2016 • https://doi.org/10.1016/j.rausp.2016.06.003 copy

Relationship between eco-innovations and the impact on business performance: an empirical survey research on the Brazilian textile industry

As relacões entre eco-inovações e o impacto na performance empresarial: uma pesquisa empíricana indústria têxtil brasileira

Las relaciones entre las ecoinnovaciones y su efecto en el desempeño empresarial: un estudio empírico en la industria textil brasileña

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

This study draws from the resource-based theory and investigates the interrelationships between three types of eco-innovation (process, product, organizational) and their impact on business performance. Using a structural equation design with 70 samples collected from textile industry, research results show that business performance is affected by product and organizational eco-innovations. The process and product eco-innovations significantly influence the effects of organizational eco-innovation, and there are connections between process and product eco-innovations. Research reveals that each type of eco-innovation has its own attributes, determinants, and contributions to business performance. Study on the textile sector broadens the discussion of interdependence and co-evolutionary relationships among different types of eco-innovation and demonstrates that the development of efficient innovation programs requires a holistic view and organizational and technological capabilities.

Keywords
Sustainable innovation; Eco-innovation; Business performance; Textile industry

Characteristics	Description	Frequency (N = 70)	Percentage (%)
Region	North	3	4.3
	Northeast	6	8.6
	Center-West	1	1.4
	Southeast	21	30
	South	39	55.7

Lifetime	Less than 1 year	2	2.8
	From 1 to 3 years	2	2.8
	From 3 to 5 years	4	5.8
	More than 5 years	62	88.6

Company size	Micro (with up to 19 employees)	24	34.3
	Small (20-99 employees)	20	28.6
	Medium (100-499 employees)	15	21.4
	Large (with 500 or more employees)	11	15.7

Type of activity	Confection	48	68.6
	Spinning	2	2.8
	Weaving	3	4.3
	Hosiery	4	5.7
	Textile processing	3	4.3
	Others	10	14.3

Factors	Variables	Meaning	Score	Commonalities	α
Factor 1 - product eco-innovation focused on eco-design	EPD1	On several occasions, the development of new environmentally friendly products by the company is marked by new technologies to simplify their packaging.	0.818	0.849	0.943
	EPD2	The development of new environmentally friendly products by the company is continuously marked by new technologies to simplify its construction.	0.711	0.783
	EPD3	The development of new environmentally friendly products by the company is constantly evidenced by new technologies to simplify its components.	0.738	0.820
	EPD4	The development of new environmentally friendly products by the company is successively emphasized by new technologies that can easily recycle its components.	0.782	0.859
	EPD5	The development of new environmentally friendly products by the company is often marked by new technologies that can easily break down its materials.	0.724	0.770
	EPD7	The company explores new technologies that use natural materials in the development of new environmentally friendly products.	0.541	0.565

Factor 2 - eco-organizational	EO1	New systems to manage the eco-innovation in our company are used.	0.714	0.678	0.943
	EO2	The use of eco-innovation is one of the management policies of our company.	0.769	0.767
	EO3	In our company, we collect information on the trends of eco-innovations.	0.783	0.767
	EO4	The company is actively involved in eco-innovation activities.	0.700	0.775
	EO5	Information on eco-innovation is shared with the employees of our company.	0.641	0.746
	EO6	The concept of eco-innovation has been applied to our business management.	0.711	0.816
	EO7	In our company, we invest significant portions of Research & Development resources into eco-innovation.	0.632	0.727
	EO9	The experiences of eco-innovation are communicated between the various departments involved in the company.	0.593	0.756
	EO8	The organization sees the external pressure regarding the environmental issues as important.	0.607	0.602

Factor 3 - process eco-innovation	EP1	The company's manufacturing processes are usually updated to protect it from contamination.	0.694	0.696	0.890
	EP2	The company's manufacturing processes are frequently updated to meet environmental law standards.	0.807	0.778
	EP3	In the company, new manufacturing processes are commonly employed so as not to contaminate the environment.	0.839	0.811
	EP6	In the company, recycling systems in the manufacturing processes are commonly established.	0.610	0.714
	EP4	In the company, new technologies in manufacturing processes are constantly introduced to save energy.	0.628	0.670
	EP5	The equipment involved in the manufacturing processes are always up to date in the company to save energy.	0.627	0.741

Factor 4 - business performance	PF1	Over the past three years, our eco-products had better performance when compared to the competition, regarding return on investments.	0.671	0.850	0.960
	PF2	Over the past three years, our eco-products had better performance when compared to the competition, regarding sales.	0.718	0.881
	PF3	Over the past three years, our eco-products had better performance when compared to the competition, regarding market share obtained.	0.747	0.878
	PF4	Over the past three years, our eco-products had better performance when compared to the competition, regarding profitability.	0.754	0.927

Factor 5 - product eco-innovation focused on eco-efficiency	EPD10	The development of new green products is often highlighted in the company through new technologies that use as little energy as possible.	0.576	0.853	0.768
	EPD6	New technologies in the development of new green products company rarely use processed material.	0.659	0.617
	EPD8	The development of new environmentally friendly products is then emphasized in the company through new technologies to reduce waste as much as possible.	0.738	0.824
	EPD9	The development of new green products is successively highlighted in the company through new technologies to reduce damages caused by waste as much as possible.	0.635	0.828

	EO	EP	EPD	PF
EO	0.823
EP	0.752	0.821
EPD	0.766	0.749	0.799
PF	0.775	0.721	0.785	0.950

Factors	AVE	Composite reliability	R ²	Redundancy (Q²)	Commonality (f²)
EO	0.678	0.950	0	0	0.593
EP	0.674	0.925	0.565	0.370	0.538
EPD	0.638	0.945	0.656	0.404	0.557
PF	0.902	0.973	0.690	0.614	0.816
Reference values	>0.50	>0.70	0.25 small, 0.50 moderate 0.75 substantial	Positive	Positive

	Original samples	Mean of samples	Standard deviation	p-value
EO → EP	0.752	0.756	0.055	0.000
EO → EPD	0.465	0.463	0.109	0.000
EO → PF	0.420	0.410	0.148	0.005
EP → EPD	0.400	0.405	0.105	0.000
EPD → PF	0.464	0.473	0.151	0.002

	Direct effects				Indirect effects				Total effects
	EO	EP	EPD	PF	EO	EP	EPD	PF	EO	EP	EPD	PF
EO	-	0.752	0.465	0.420	1	-	0.300	0.355	1	0.752	0.766	0.775
EP	-	-	0.400	-	-	1	-	0.185	-	1	0.400	0.185
EPD	-	-	-	0.464	-	-	1	-	-	-	1	0.464
PF	-	-	-	-	-	-	-	1	-	-	-	1

Hypotheses	Thai industry		Brazilian textile industry
Hypotheses	R ²	Situation	R ²	Situation
H₁	0.59	Confirmed	0.75	Confirmed
H₂	0.46	Confirmed	0.46	Confirmed
H₃	0.41	Confirmed	0.40	Confirmed
H₄	0.42	Confirmed	0.15	Not confirmed
H₅	0.36	Confirmed	0.46	Confirmed
H₆	0.51	Confirmed	0.42	Confirmed

Departamento de Administração da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo Avenida Professor Luciano Gualberto, 908, sala F184, 05508-900 São Paulo / SP Brasil, Tel./Fax 55 11 3818-4002 - São Paulo - SP - Brazil
E-mail: rausp@usp.br

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[1] ∗ Corresponding author at: Universidade Federal do Cariri, Centro de Ciências Sociais Aplicadas – CCSA, Avenida Tenente Raimundo Rocha, s/n, 63048-080 Juazeiro do Norte, CE, Brazil. E-mail:marcus.brasil@ufca.edu.br (M.V. de Oliveira Brasil).