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1、Main Drivers and Performance of Eco-Innovationby Mi Kyung Lee and Zong-Tae Bae _The purpose of this paper is to identify influencing factors of eco-innovation activities and performance. This paper is composed of two phases: case studies and statistical analysis. Case studies on five successful eco-
2、innovation projects drew several preliminary findings on eco-innovation drivers. Based on literature review and case studies, the research model and six hypotheses were generated for statistical testing with 83 samples. The results from statistical analysis supported hypotheses on drivers of eco-inn
3、ovation activities and performance, such as regulation severity, perceived regulation advantage, diversity of market demands, technological capability, environmental system capacity, and environmental marketing capacity. A firms motive for eco-innovation corresponding to regulations was a crucial in
4、fluencing factor both on innovation activities and performance. Market demands and environmental marketing capability have stronger relationship with innovation activities, while technological capability and environmental system capability have stronger relationship with innovation performance. _Int
5、roductionRecently, green innovation, also known as eco-innovation, is getting more interests among governments and companies. The main reason for this is its contribution not only to the environmental protection but also to the sustainability in their society. Since 1970s, governments of major indus
6、trialized nations had their focus on pollution control of major companies. In 1980s, governments encouraged companies to develop eco-friendly processes and recycling technologies as well as the development of products that can reduce environmental pollution from its product design stage (Kemp and Ar
7、undel, 1998). _Mi Kyung Lee is Assistant Manager at Technology Strategy Group of POSCO, Korea.Zong-Tae Bae is Professor of Innovation Management at KAIST Business School, Korea.Corresponding Author: Zong-Tae Bae, ztbaebusiness.kaist.ac.kr South Korea added a question on the current situation and the
8、 motivations on green innovation to its annual survey of Korean Innovation Survey in 2009 and this exactly shows the increase of interests on eco-innovation. According to a survey of McKinsey in 2008, 22 percent of Korean consumers answered that they would purchase an environmentally friendly produc
9、t even though its price is higher. In this context, major Korean companies are now launching various eco-friendly products that can catch the attention of customers who are aware of environment. From a resource-based view, these corporate actions are based on the following three environmental strate
10、gies: i) pollution prevention, ii) product stewardship, and iii) sustainable development (Hart, 1996). While there have been many studies on identifying the relationship between a companys eco-friendly management activity and its performance (Hart, Ahuja and Arbor, 1996; Klassen and Mclaughlin, 1996
11、; Russo and Fouts, 1997; Christmann, 2000; Melnyk, Sroufe and Calantone, 2003), or the factors affecting the pollution control of companies (Eiadat, Kelly, Roche and Eyadat, 2008), few studies tried to identify the influence of “innovation.” Even those studies show some limitations. First, they are
12、only dealing with companies in EU and USA (Baumann, Boons and Bragd, 2002). Besides, they did not try to identify the drivers of eco-innovation at the company level. To identify the drivers more precisely, however, the relationship should be identified at a more microscopic level, that is, at the pr
13、oject level. Furthermore, a study with a focus on “innovation activities” would be more meaningful to identify the way to promote eco-innovation, compared to those encompass all the activities.Therefore the purpose of this paper is to identify influencing factors of eco-innovation activities and per
14、formance. It focuses on how innovation activities and performance are affected by the drivers with case studies and a statistical analysis. This paper is organized as follows. Based on literature reviews, it establishes the related concepts and propositions. Case studies (Phase 1) on five successful
15、 eco-innovation projects are carried out and drew preliminary findings. Next section describes research methods and the results of statistical analysis (Phase 2). This paper ends with the conclusion and discussion on the limitation of the current research.Theoretical Background and PropositionVariou
16、s terminologies have been used to represent companies environmentally friendly innovation activities. In the early 2000s, it was widely accepted to use the term “environmental innovation,” and its abbreviated form, “eco-innovation,” was also used occasionally (Rennings, 2000). Recently, more companies are concerned about product innovation and su
