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2 Research Issues, Objectives & Questions

2 Research Issues, Objectives & Questions

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evaluate the theoretical model and research hypothesis. In this paper, the

software SPSS (Version 16.0) is used.



1.4 Significance of study



From the theoretical perspective, this paper firstly investigates the

relationship between managerial environmental concerns and environmental

regulation with environmental innovations in enterprise. Secondly, the

relationship between environmental innovations and firm’s competitive

advantage is also inquired. Thus, these results can be used to complement the

theory of environmental innovations for developing economy, like Vietnam

In addition, this paper also has many practical meanings:

Firstly, the result from this paper helps enterprises more understand

about the role of managerial environmental concerns and environmental

regulation as impacting factors on environmental innovations in enterprises.

Consequently, enterprises can speed up the environmental activities to

preserve the earth and surrounding atmosphere

Secondly, the relationship between environmental innovation and

firm’s competitive advantage leads the enterprise to a new outlook of the

environmental activities which are no longer burdened-cost activities, but a

new tool to increase the competitiveness of company.

Finally, the result from this paper helps policy makers to grasp the

impact of environmental laws on enterprise. On this basis, policy makers can

complement or modify the current items in the law so as to be more suitable

and to play an encourage role to accelerate environmental activities in

enterprise



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1.5 Structure of study



This study is divided into five chapters:

Chapter 1 presents the overview of this study.

Chapter 2 introduces literature review and theoretical model

development.

Chapter 3 presents research methodology which aims to verify scale

and evaluate the hypothesis.

Chapter 4 outlines the result of analyzing multi-linear regression

model.

Chapter 5 presents discussion of research result, implication and

further research.



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Chapter 2:



LITERATURE REVIEW



2.1 Definition of environmental innovation

In the process of manufacturing, enterprises have contributed a great

amount of toxic materials, hazardous waste, and noxious carbon into

environment. In order to reduce the impact of these pollutions,

environmental innovations is defined as activities that aim to change of

processes, techniques, practices, systems and products so as to lower the

harmful impact of manufacturing activities on environment (Rennings et al,

2004). Ediadat et al, (2008) also suggests the environmental innovations as a

class of manufacturing practices which aims to reduce the using of resources

and preventing pollution

Porter & van der Linde (Fall 1995) have other contribution for

environmental innovation when classifying them into two main activities:

process innovations and product innovations, specifically:

Firstly, products are forced to be innovated in the way that creates

better-performing, higher quality, higher resale or safer characteristics, in

other words, making the lifetime of product longer. Moreover, the innovated

products must have lower product cost per unit and lower disposal cost from

users. These results come from material substitution, less packaging so as to

be easy in recycling or disassembly.

Secondly, the process must be innovated in the method that reduces

pollution by less use of energy, higher yield, and less downtime. Therefore,

environmental product and process innovations help to transfer higher added

value to customer with a lower cost of production. In other words, the

environmental product and process innovations can lead to competitive



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advantages over the enterprises that do not subject to environmental

regulations (Porter & van der Linde, Fall 1995)

In addition, in the OECD Oslo Manual (2005, (Gunday et al, 2011),

process and product innovations are defined as closely related to the concept

of technological developments. Specifically, a product innovation is the

introduction of a good or service that is new or significantly improved

regarding its characteristics of intended uses, including significant

improvements



in



technical



specifications,



components



and



materials…whereas a process innovation is the implementation of a new or

significantly improved production or delivery method which intends to

decrease unit costs of production or delivery, to increase quality, or to

produce or deliver new or significantly improved products.

Along with Porter &van der Linde (Fall 1995), other researchers

substitute environmental innovations with a term “green innovations” that

has a similar meaning. Chen et al, (2006) suggests that there should be

technological change in green innovations which comprise of green product

and process innovation.



These changes should result in energy-saving,



pollution prevention, waste recycling, product designs or corporate

environmental management.



Chiou et al, (2011) also integrated green



managerial innovations, green product, and green process into green

innovations, in which the green managerial innovation is conceptualized as

internal managerial support for green initiatives. Therefore, green

innovations and environmental innovations can be used interchangeably.

Moreover, many researchers also replace process innovation and

product innovation with new concepts. For example Snir, (2001) uses

product stewardship to describe the set of practices that reduce

environmental impact by less use of hazardous chemicals and nonrenewable

materials in product development, and product design. Meanwhile,

W.Y.Wong et al, (2011) suggests the term process stewardship as preventing



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inefficient use of materials and resources in transportation, production, and

disposal of product so as to reduce adverse environmental impact. It

emphasizes waste reduction and contributes to environmental protection

through implementing such processes as recycling, reengineering polluting

processes, minimizing carbon emission and so forth Therefore, product and

process innovations are specific kinds of technological innovation which aim

to reduce environmental burden for product and process (Ziegler &

Nogareda, 2009)

Generally, the environmental innovation can be used interchangeably

with green innovation which consists of two main elements of product

innovation and process innovation aiming to reduce harmful environmental

impact to the earth



2.2 Review of previous studies on environmental innovation



Since



Porter & van der Linde, (Fall 1995) arise the role of



environmental innovation as it can offset the cost of complying with

environmental regulations and lead to competitive advantage, many authors

have tried to re-examine this role as well as discovering the factors that

influence environmental innovation and the factors that is impacted by

environmental innovation. Below tables are summarized for these factors as

well as the methodology and main findings. Generally, these papers can be

divided into two main categories. On one hand, there are factors that play as

independent variable, which influence environmental innovations such as:

customers, suppliers, regulatory and competitive pressures (table 2.1). The

other is the dependent factors that are impacted by environmental

innovations such as: environmental performance, competitive advantage and

firm performance (finance, export intensity…) (table 2.2)



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Table 2.1: antecedent variables of environmental innovations

No Authors



1



Main category:

- Antecedent variables:

regulations, customer/supplier,

managerial concerns…

- Dependent variables:

environmental innovations

Yalabik & Customer, regulatory, and competitive

J.Fairchild, pressure as drivers of environmental

(2011)

innovation



Methodology



Findings



Positive relationship

-Solving the monopoly

model for the optimal

price and environmental

emission level of the firm



-Environmental innovation motives

should be encouraged by awards

rather than by fine

-Competition can be effective

driver of environmental innovation

while regulatory pressure can be

effective drivers of environmental

innovation in case consumers are

likely to switch due to

environmental performance



No/negative

relationship

-



10



Table 2.1: antecedent variables of environmental innovations

No Authors



Main category:

- Antecedent variables:

regulations, customer/supplier,

managerial concerns…

- Dependent variables:

environmental innovations

The impact of customer benefit and

regulation on environmental product

(EP)innovation



2



Kammerer,

(2009)



3



Ediadat et The influence of perceived stakeholders

al, (2008)

pressure, managerial environmental

concerns and government

environmental regulations on

environmental innovation strategy.



Methodology



Findings



Positive relationship



No/negative

relationship



-Data is collected by

online questionnaire in

three different sectors:

information and

communication technology

(IT), household appliances

(HA), and medical

appliance (MA) of German

manufacturers

-Using logit regression for

analyzing data



-Both customer benefit and

regulation foster the

implementation of environmental

product innovation



-



-Survey from

environmental managers in

the chemistry industry in

Jordan

-Sample of 119 firms

-Analyzing data with SEM



-Environmental innovation strategy

is associated with improved

perceived firm’s business

performance

-The adoption of environmental

innovation strategy is influenced by

managerial environmental concerns

but not influenced by government

environmental regulations,



The adoption

of

environmental

innovation

strategy is not

influenced by

government

environmental

regulations,



11



Table 2.1: antecedent variables of environmental innovations

No Authors



Main category:

- Antecedent variables:

regulations, customer/supplier,

managerial concerns…

- Dependent variables:

environmental innovations

The influence of greening the

suppliers and green innovation

on environmental performance and

competitive advantage in Taiwan



Methodology



4



Chiou et

al, (2011)



-Survey across 124

companies from eight

industry sectors in Taiwan

-Using SEM to analyze

data



5



Hofer et al, The competitive determinants of a -A negative binominal

( 2012)

firm’s environmental mangement (EM) generalized estimating

activities

equations (GEE) model is

used to analyze data

-Data includes

observations from leader

and challenger firm in

each six-digit NAICS

industry in the US



Findings



Positive relationship



No/negative

relationship



Greening the suppliers through

green innovations improves the

environmental performance and

competitive advantage



-



- Market leadership, firm size and

firm profitability significantly

affect the magnitude of a firm’s

environmental management

activities



12



Table 2.1: antecedent variables of environmental innovations

No Authors



6



7



Main category:

- Antecedent variables:

regulations, customer/supplier,

managerial concerns…

- Dependent variables:

environmental innovations

W.Y.Wong -The influence of environmental

et al,

management capability (EMC) of

(2011)

suppliers on firm performance of green

operations (product stewardship and

process stewardship) and pollution

reduction



Methodology



Ziegler &

Nogareda,

(2009)



Exploring the causal relationship

between environmental management

system and technological

environmental innovations



Findings



Positive relationship



No/negative

relationship



-Data is collected of 122

electronics manufacturers

in Taiwan

-Applying multigroup

analysis with AMOS 7.0



-Process stewardship improves

both the environmental and

financial performance



-Product

stewardship

negatively

impact on both

the

environmental

and financial

performance of

electronic

manufacturers



-Data were collected by a

questionnaire-based

telephone survey in

Germany

-Using univariate probit

analysis



-



-The causal

relationship

between

environmental

management

system and

technological

environmental

innovations is

not clear



13



Table 2.1: antecedent variables of environmental innovations

No Authors



8



Pujari et al

,(2003)



Main category:

- Antecedent variables:

regulations, customer/supplier,

managerial concerns…

- Dependent variables:

environmental innovations

The influential factors on

environmental new product

development (ENPD) performance



Methodology



Findings



Positive relationship

-Collecting data from 1000

firms in UK by mail

-Using regression analysis

to analyze data



- E-co performance of ENPD is

positively influenced by many

factors: A higher degree of top

management support for ENPD; a

higher degree of integration of

environmental coordinator in

ENPD process; a higher degree of

supplier involvement

-E-co performance and market

performance of ENPD is positively

influenced by: a higher degree of

effective groundwork; a higher

degree of integration of

environmental impact databases in

existing information systems; a

higher degree of cross-functional

coordination; a higher degree of

environmental benchmarking



No/negative

relationship



14



No Authors



Table 2.2: environmental innovations and dependent variables

Main category:

Methodology

Findings

- Antecedent variables:

environmental innovations

- Dependent variables:

Positive relationship

Financial performance, business

performance, competitive

advantage….

The influence of environmental

-Survey from

-Environmental innovation

innovation strategy on perceived firm’s environmental managers in strategy is associated with

business performance

the chemistry industry in

improved perceived firm’s

Jordan

business performance

-Sample of 119 firms

-Analyzing data with SEM



1



Ediadat et

al,( 2008)



2



Shrivastava,

(summer

1995)



3



Chen et al, The influence of green innovation

(2006)

performance on corporate advantage in

Taiwan



Environmental technologies and

competitive advantage



None/negative

relationship

-



-Case study of 3M

company



-Environmental technologies

enhance the competitive

advantage of enterprise



-



-Survey from the

information and

electronics company in

Taiwan by random

sampling from 600

enterprises -Using

regression analysis



Green product innovation and

green process innovation

positively relates to corporate

competitive advantage



-



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