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Systematic Review - Network for Business Sustainability

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STUDY PURPOSE FINDINGS<br />

Del Brío and<br />

Junquera<br />

(2003)<br />

To review the literature on<br />

environmental innovation<br />

management in small and<br />

medium-sized enterprises<br />

(SMEs) — takes a strategyoriented<br />

perspective<br />

OECD (2009) To review relevant<br />

concepts and practices<br />

relating to sustainable<br />

manufacturing and ecoinnovation<br />

<strong>for</strong> policy and<br />

practitioner audience<br />

Klewitz and<br />

Hansen<br />

(2011)<br />

Schiederig et<br />

al. (2012)<br />

Pereira and<br />

Vence (2012)<br />

To systematically review 82<br />

peer-reviewed publications<br />

regarding sustainabilityoriented<br />

innovation in SMEs,<br />

1987 to 2010<br />

To clarify the concept of<br />

“green innovation” and to<br />

provide an overview of the<br />

existing body of literature in<br />

the field of green innovations,<br />

1990 to 2010<br />

To explore the determinants<br />

of eco-innovation at the firm<br />

level, 2006 to 2011<br />

SMEs are different from multinational enterprises (MNEs) and require specific<br />

support from public administrations to promote sustainability-oriented innovation<br />

(SOI). The determining factors of SMEs’ environmental strategy alternatives include<br />

financial resources, organizational structure, management style, human resources,<br />

environmental management status, manufacturing activity, technological approach,<br />

innovative capacity and external co-operation.<br />

• Practices <strong>for</strong> sustainable manufacturing have evolved from end-of-pipe solutions<br />

to a focus on product life cycles, integrated environmental strategies and<br />

integrated management systems.<br />

• Sustainable manufacturing calls <strong>for</strong> multi-level eco-innovations: integrated<br />

initiatives such as closed-loop production can potentially yield higher<br />

environmental improvements but require appropriately combining a wide range of<br />

innovation targets and mechanisms.<br />

• Eco-innovations in manufacturing tend to focus primarily on technological<br />

advances, though some advanced players have adopted new business models<br />

or alternative modes of provision.<br />

A conceptual framework of SOI in SMEs can be developed, consisting of the<br />

following:<br />

• Strategic orientation: a focus on being reactive, compliant, proactive, innovative.<br />

• Degree of innovativeness: reactors are incremental, innovators are more radical.<br />

• Predominant practices: from incremental process innovations to product and<br />

business model innovations.<br />

• Mechanisms of influence: reactors are driven by regulation, innovators are more<br />

influenced by and influence collaborations and partnerships.<br />

• Involvement of external actors: engagement of governments, regulators, value<br />

chain partners and knowledge institutions.<br />

• Predominant driver: external regulation gives way to a market-driven orientation.<br />

When referring to green innovation, a range of synonymous terms are used<br />

interchangeably, including sustainable innovation, environmental innovation and<br />

ecological innovation. These terms have only minor conceptual differences. In both<br />

conceptualization and operationalization, the ecological dimension is privileged over<br />

the social dimension.<br />

In the fields of business, administration, finance and economics, the focus of study<br />

is on economic topics at the medium and large scales of innovation science (i.e. at<br />

the industry level and national policy level) not at smaller scales, such as managerial<br />

topics (i.e. at the intra-firm level). Journal of Cleaner Production is identified as the<br />

most prolific publisher in these fields.<br />

The following determinants of eco-innovation are identified:<br />

• Sector: the greatest activity is observed in the most polluting sectors.<br />

• Financial: eco-innovation is not incompatible with business logic, can affect<br />

efficiency savings and competitiveness.<br />

• Market expectations: consumers are an increasingly important driver.<br />

• Technological capabilities: such as R&D.<br />

• Use of tools: adoption of environmental management systems and other tools<br />

such as life-cycle assessment and eco-labelling can positively influence ecoinnovation.<br />

Innovating <strong>for</strong> <strong>Sustainability</strong> 64

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