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https://www.emerald.com/insight/1460-1060.htm
the future
Giovanna Afeltra, Sayed Alireza Alerasoul and Fernanda Strozzi
LIUC Carlo Cattaneo University, Castellanza, Italy
Received 26 February 2021
Revised 5 July 2021
Abstract Accepted 23 August 2021
Purpose – Over the last few decades, more emphasis has been placed on those innovations that can reconcile
economic, social and environmental goals in order to achieve a “win-win-win” situation. This paper aims to
systematise the scientific literature on Sustainable Innovation as a broad field in order to identify the most
relevant scholars and their significant contributions as well as existing lines of research. Finally, future
research directions are suggested.
Design/methodology/approach – A novel methodology, the Systematic Literature Network Analysis, has
been applied. By using a dynamic approach to the traditional Systematic Literature Review, the present review
investigates the creation, transfer, and development of knowledge throughout the epistemic community of
Sustainable Innovation.
Findings – Starting from a sample of 1,108 articles, the critical assessment of the results detected five main
themes: (1) “the role of Regulation, Market and Technology”; (2) “Eco-Innovation determinants and firm specific
factors and the debate between corporate environmental performance and corporate financial performance”;
(3) “Green innovation and internal and external drivers”; (4) “The strategic determinants of green (non-green)
innovation”; (5) “The interplay between policy, regulations and the green innovation”.
Practical implications – From a practitioner’s perspective, this study provides an objective view on the
current internal, external drivers and strategic determinants of sustainability-oriented innovations and
relevant studies that can guide managers in their decision-making processes and enhance sustainable
innovation performance.
Originality/value – This study is a first attempt to unveil the evolution of knowledge in the field of
sustainable innovation by utilizing bibliometric tools.
Keywords Sustainable innovation, Eco-innovation, Environmental innovation, Green innovation,
Systematic literature review
Paper type Literature review
1. Introduction
Over the last few decades, more emphasis has been placed on how innovations can help
reconcile economic, social and environmental goals with “win-win-win” strategies towards
sustainability (Elkington, 1994; Eccles et al., 2013). Several studies have attempted to better
define the concept of “Sustainable Innovation” (SI) by adopting different views, such as a
process view with interactions and transformations by stakeholders and managers (Aka,
2019). A significant strand of research has investigated how business firms’ technological
activities develop new green products and processes and how these are shaped by
environmental policies, R&D policies and firm’s characteristics (Castellacci and Lie, 2017).
Previous studies have tried to systematise the literature on the drivers and motivations that
lead companies to adopt Eco-Innovations (EIs) (Montalvo Corral, 2003; Corral, 2003; Bossle
The authors thank Professor Frank Boons (University of Manchester), Professor Valentina De Marchi
(University of Padua) and Professor Alessandro Creazza (LIUC University) for the valuable comments
on the improvement of the paper in the initial and final stage of the study. The authors also thank the
European Journal of Innovation
participants of the conference “Competitive Renaissance through Digital Transformation” organized by Management
the University of Pavia, which provided other meaningful suggestions for the last improvement of the © Emerald Publishing Limited
1460-1060
manuscript. DOI 10.1108/EJIM-02-2021-0113
EJIM et al., 2016) or on the determinants of EIs in relation to a specific context, such as
manufacturing SMEs (Klewitz and Hansen, 2014), or to find the main path in the link between
environmental regulation and firm competitiveness (Barbieri et al., 2016), using different
keyword strings and databases. Cillo et al. (2019) tried to systematise the previous literature
under three critical perspectives: internal managerial, external relational and performance
evaluation, and He et al. (2018) reviewed the literature on eco-innovation in the corporate
environment. This study, on the other hand, represents a more recent and comprehensive
literature review, placing more attention on the broader concept of SI, which includes the
social dimension as well as the environmental and economic dimensions, and on how it links
with related concepts (e.g. eco-innovation, green innovation) with a novel approach to
determine future trends and the current state of the art. The aim of this study is to define the
main streams and evolution of SI and related concepts at firm level together with the
evolution of the determinants of SI and firms’ characteristics that enable greater corporate
and financial performance as well as a competitive advantage. We further contribute to the
existing body of literature identifying the most relevant scholars and their significant
contributions in the field of SI. There is also a call for more plurality and diversity to the
insights derived from literature reviews (Jones and Gatrell, 2014; Gatrell and Breslin, 2017;
Hakala et al., 2020). Therefore, the novel Systematic Literature Network Analysis (SLNA)
method is applied to provide an overview of the current body of knowledge; this includes a
primary determination of the main flow of knowledge over time and ultimately the
application of the Kleinberg burst detection for the identification of the emerging topics. This
methodology, introduced by Colicchia and Strozzi (2012), combines the Bibliographic
Network Analysis (BNA) and the Systematic Literature Review (SLR) to investigate the
creation, transfer and development of knowledge throughout the SI epistemic community.
This approach was chosen to identify past trends and to anticipate future directions in a
scientific and more objective way (Colicchia et al., 2019; Colicchia and Strozzi, 2012; Kajikawa
et al., 2007). This method has been successfully experimented within other fields (Milella et al.,
2021; Ciano et al., 2019; Comerio and Strozzi, 2019; Strozzi et al., 2017); however, it has not yet
been applied to the broader field of SI. The specific set of keywords proposed is based on a
well-developed terminology that has been accepted and used by most researchers in the field
(Charter and Clark, 2007; Dias Angelo et al., 2012; Hojnik and Ruzzier, 2016; Schiederig et al.,
2012; Siqueira and Pitassi, 2016). Furthermore, for the appropriate application of this method,
the scope of the study is defined by referring to the CIMO framework, which is designed to
answer the questions on the Context, Intervention, Mechanism and Outcome of review
(Denyer and Tranfield, 2009). By applying different analyses, this study seeks to answer:
(RQ1) what are the research themes that have characterised the field of SI over time? And
(RQ2) what are the directions towards future research based on the existing themes and
streams in the field? By applying this approach, the main path of knowledge in the field is
detected, and by critically assessing the relationships between concepts, several themes of
research have emerged. In general, this study tries to contribute to the literature on SI by
addressing the existing key lines of research for each topic, identifying the managerial and
organisational concepts that have co-occurred more frequently with these topics and
determining how they have evolved together over time and ultimately addressing the future
avenues of research in the field.
4. Methodology
4.1 Systematic literature network analysis (SLNA)
The data were collected from Scopus, which is one of the leading bibliographic databases
(Zhao and Strotmann, 2015). The SLNA consists of two steps; the first is the SLR, which
differs from the traditional narrative reviews because it adopts a replicable, transparent and
scientific process which leads to an exhaustive literature search for all available relevant
published studies (Tranfield et al., 2003). In carrying out the SLR we followed the steps
suggested by Denyer and Tranfield (2009): the scope of the analysis; question formulation
through the CIMO approach (Denyer et al., 2008); locating studies and the selection and
evaluation of the studies. The second step of SLNA is a bibliographic network analysis
(BNA), which combines a Citation Network Analysis (CNA), the Global Citation Score (GCS)
and the Burst detection of author keywords.
Figure 1.
Sample extraction
procedure
Keyword Distribution
2.2% 2.7% 0.8% 0.5%
18.5%
17.2%
22.8%
35.4%
Figure 2.
Environmental innovation Green innovation Eco*innovation
Distribution of
keywords selected for
Sustainable innovation Sustainability-oriented innovation Green product innovation the enquiry on Scopus
Green process innovation Innovation sustainability
EJIM Journal No. of publications Rank
Figure 3.
The biggest connected
component extracted
from the citation
network
The steps to perform the MP analysis using Pajek are shown in Figure 4; this includes the
computation of weights for each arc to identify the MP by looking for the weighted network.
The Search Path Count (SPC) weights are used for CNA, which is a relatively simpler weight
assignment scheme compared to Search Path Link Count (SPLC) and Search Path Node Pair
(SPNP) introduced by Batagelj (2003). Aware of the existence of several subareas, we also
attempt to group the papers within appropriate communities, applying the Louvain
algorithm of Pajek to optimize the modularity (Comerio and Strozzi, 2019). The final MP is a
weighted network of the biggest component, which represents the main streams of the
literature in the area of SI and related concepts and it is made up of 32 papers (Figure 5),
ranging from 1994 till the most recent.
Quantification of the
Search Path Link Count Key route Main Path
citation traversal 32 Papers
(SPLC) method
weights
Figure 4.
Search Path Node Pair The main path
(SPNP)
extraction process
EJIM
Figure 5.
of the biggest
connected component
The main path analysis
Green K. (1994)
Theme 1: “The role of Regulation, Market
Brunnermeier S.B
(2003)
Horbach J. (2008)
Oltra Y. (2009)
Borghesi S: (2015)
Lee
Castellacci F. (2017) & Min (2015)
Li et
al. 2017
Theme 5: “The interplay between Theme 3: “Green innovation and
Kiefer C.P. (2017)
Chen
policy, regulations and the green et al. (2018) internal and external drivers”
Kiefer C.P. (2018)
Du et
innovation” al. (2018)
Horbach J. (2018)
Wang
et al. (2020)
Walton S. (2019)
El-Kassar
Leyva-de & Singh (2019)
la Hiz, (2019)
Garcia-Machado & Martinez-
Avila (2019)
Rabadan et al. (2019) Xie et
Garces-Ayerbe et al., al. (2019)
(2019)
Table 2.
cited papers
GCS of the most 10
Citations 2019/
Publication Total No. of Main years since the
year Document title Authors Journal title citations path publication Rank
2013 Business models for sustainable innovation: Boons F., Ludeke- Journal of cleaner 641 No 21 1
State-of-the-art and steps towards a research Freund F production
agenda
2000 Redefining innovation - eco-innovation Rennings K Ecological economics 898 Theme 6 9
research and the contribution from ecological 1
economics
2008 Strategic niche management and sustainable Schot J., Geels F.W Technology analysis 745 No 11 4
innovation journeys: Theory, findings, and strategic
research agenda, and policy management
2008 Determinants of environmental innovation- Horbach J Research policy 558 Theme 8 7
New evidence from German panel data sources 1
2006 The influence of green innovation performance Chen Y.-S., Lai S.- Journal of business 541 No 8 8
on corporate advantage in Taiwan B., Wen C.-T ethics
2012 Determinants of eco-innovations by type of Horbach J., Ecological economics 426 Theme 12 3
environmental impact–the role of regulatory Rammer C., 2
push/pull, technology push and market pull Rennings K
2013 Sustainable innovation, business models and Boons F., Journal of cleaner 360 No 13 2
economic performance: An overview Montalvo C., Quist production
J., Wagner M
2012 Environmental innovation and R&D De Marchi V Research policy 376 No 11 5
cooperation: Empirical evidence from Spanish
manufacturing firms
2010 Mainstreaming green product innovation: Dangelico R.M., Journal of business 405 No 8 6
Why and how companies integrate Pujari D ethics
environmental sustainability
2008 The driver of green innovation and green Chen Y.-S Journal of business 401 No 6 10
image–green core competence ethics
Source(s): Scopus
development of new markets, product differentiation, higher competitive advantage, The evolution
improved corporate image. However, investment in green technologies is risky as they of sustainable
consume resources and exhibit return uncertainty (Li et al., 2017, Theme 3). It also emerged
that companies were particularly aware of the importance of quality and product pricing
innovation
attributes as signs to encourage environmental integration. Another challenge that emerges
is related to the lack of customer informativeness regarding the premium price usually
attributed to green products. To overcome this issue, companies could implement eco-labels
or third-party certification to clearly inform customers. They also outlined the need to further
investigate green product portfolio management to improve our understanding of how
companies invest in green product technology platforms to bring new green products into
markets. The seventh-ranked paper by Horbach (2008) has already been mentioned as one of
the papers detected by the MP. The next study by Chen et al. (2006) covered the fields
of economic development and environmental protection, which refer to the concept of
sustainable development. They investigated whether the performance of green innovation
can positively affect the competitive advantage. They considered green innovation as green
product innovation and green process innovation and explored the influences that they can
have on corporate competitive advantage. The results revealed a positive relationship; thus,
investments in green product and green process innovations can increase corporate
competitive advantage. The study by Rennings (2000) is the 9th ranked paper, and it is also
included in the MP (Theme 1). The last article by Chen (2008) was not detected by the previous
analysis, and it proposed a novel construct, “the green core competence”, which was found to
be positive to green innovation performance and green image. This study suggests that the
enhancement of green core competencies can promote green innovation and green image.
The GCS results complemented the MP results suggesting that scholars are now
investigating the role of business models to promote SI and to achieve a competitive
advantage, as business models seem to provide a connection between firms and the
consumption and production system in which they operate. Overall, business models
emerged as important tools for researchers and practitioners to enhance sustainable
innovation practices. Furthermore, government regulations seem to play a key role in guiding
business models to create sustainable value and there is also a need to integrate niche internal
processes such as learning, networking and visioning with niche external processes. The CGS
results have also confirmed the importance of green product innovation as a key factor to
promote environmental sustainability and growth, the importance to aim at the long-term
environmental performance and the key role of cooperation strategies for the development
and implementation of environmental innovations. Studies that found external cooperation
and external sources of knowledge to be important factors for green innovations are related to
Theme 1 (Horbach, 2008 for Germany), Theme 2 (Ghisetti and Rennings, 2014), Theme 4
(Cainelli et al., 2015 for Italy) and Theme 5 (Castellacci and Lie, 2017 for South Korea) of the
MP analysis. Sustainable innovation scholars are now focusing on collaboration activities
and stakeholder engagement as it is difficult to achieve within one organisation and thus
requires a strategic network (e.g. suppliers and institutions). The need has also emerged for
more studies that investigate how to implement the stakeholders’ needs within the
organisation and to better understand “how” to design business models and “what” their role
is in achieving SI.
Figure 6.
Burst detection results
EJIM assessment of the MP papers with the support of the Louvain algorithm of Pajek detected five
themes: (1) “the role of Regulation, Market and Technology”; (2) “Eco-Innovation
determinants and firm specific factors and the debate between corporate environmental
performance (CEP) and corporate financial performance (CFP)”; (3) “Green innovation and
internal and external drivers”; (4) “The strategic determinants of green (non-green)
innovation”; (5) “The interplay between policy, regulations and the green innovation”. The
aims of this section are to discuss the results of each theme, point out their potential future
development and suggest future research directions in the field by combining the results of all
the analyses, which have been summarised in the final Table 3.
Theme 1 dealt with “The role of Regulation, Market and Technology”, which highlighted
the correlation between commercial factors and the influence of regulation and the correlation
between the anticipation of regulation, the fear of rival products. The definition of eco-
innovations was introduced, addressing three kinds of innovation changes that can lead to
sustainable development: technological, social and institutional. The peculiarities of eco-
innovation were identified as: the regulatory push/pull effect, the double externality problem
and social and institutional innovation. The determinants of environmental innovation were
measured by the number of environmental patent applications that succeeded. Overall, three
building blocks gained importance: demand conditions, technological regimes and
innovation policy as demonstrated by the sectoral framework developed by Oltra and
Saint Jean (2009). The literature on “The role of Regulation, Market and Technology” revealed
the need for studies investigating the impact of market orientation (proactive and responsive)
on SI performance and studies on how a sectoral system approach can affect SI, based on the
above mentioned building blocks developed by Oltra and Saint Jean (2009). Scholars might
explore further the co-evolution of the three building blocks in order to develop proposals on
how to affect the transformation systems with comprehensive analyses, which include
cooperation with stakeholders.
Theme 2, “EI determinants and firm specific factors and the debate between Corporate
Environmental Performance (CEP) and Corporate Financial Performance (CFP)”, revealed:
the positive relationship between EMSs and environmental, technological innovations; the
key role played by customer benefits; cost savings and government regulations as
determinants of eco-innovations. There is the emergence of training programs and
collaborations to promote eco-innovations and the competitiveness of firms. The
uniqueness of organisational resources and capabilities is seen as a strategic way to
achieve superior corporate environmental and financial performance and can play a key role
in achieving higher competitiveness. The results showed that when it comes to analysing the
determinants of eco-innovations, there is a need to distinguish between different
environmental areas such as energy use, water consumption, etc. This represents a
research gap that could be considered by scholars for further investigation. We also found
that organisational innovations such as EMS seem to overcome incomplete information
within companies and are important tools to trigger cleaner cost-saving technologies.
However, more empirical research is needed on the relevance of EMS for environmental
management and performance. This might also lead to policy improvements for initiatives
that deal with environmental problems. Academics are also invited to further investigate
issues related to the implementation of EMS in large and small-medium sized companies.
The analysis of Theme 3 “Green innovation and internal and external drivers” revealed
that the literature is now concerned about the legitimacy pressure from stakeholders on both
corporate green product and process innovation and the impact of corporate profitability on
green product innovation. The interaction between green customer integration and green
supplier integration is found to positively affect green innovation performance. Green
learning innovation has emerged as having an important role in exploratory and exploitative
green innovations. New practices to enhance environmental performance, such as green
Themes Authors of MP Main concepts Relations with GCS Relations with burst detection FRDs
Theme 1: “The role of Green et al. (1994), Rennings (2000), The regulatory push/pull effect; the Determinants of environmental Technology Rennings (2000), Barbiroli The impact of market orientation
regulation, market and Pickman (1998), Rennings et al. double externality problem; social and innovation (Horbach, 2008); The and Raggi (2003), environmental (proactive and responsive) on SI
technology” (2006), Brunnermeier and Cohen institutional innovation; environmental definition of eco-innovations addressing innovation Marvin et al. (1999), performance, and studies on how a
(2003), Horbach (2008), Oltra and regulatory; pollution abatement three kinds of innovation changes that Gonzalez and Leon (2001), Horbach sectoral system approach can affect SI,
Saint Jean (2009) expenditures; environmental innovation; can lead to sustainable development: (2008) based on three building blocks: Demand
Porter hypothesis; automotive industry Technological, social and institutional conditions, technological regimes, and
(Rennings, 2000) innovation policy developed by Oltra and
Saint Jean (2009). Scholars might explore
further the co-evolution of the three
building blocks in order to develop
proposals on how to affect the
transformation systems with
comprehensive analyses, which include
cooperation with stakeholders
Theme 2: “EI determinants and Ziegler and Seijas Nogareda (2009), Eco-innovation determinants; customer Determinants of eco-innovations by Eco innovation Ponomariov and There is the emerging interest in training
firm specific factors and the Horbach et al. (2012), Cainelli and benefits, cost savings and government type of environmental impact the role of Toivanen (2014), Quitzow et al. (2014), programs and collaborations to promote
debate between corporate Mazzanti (2013), Ghisetti and regulation; training programs, regulatory push/pull, technology push Chiarvesio et al. (2015), open innovation eco-innovations and the competitiveness
environmental performance Rennings (2014), Lee and Min collaboration and environmental and market pull (Horbach et al., 2012); Rashid et al. (2014), Mazzanti (2018), of firms
(CEP) and corporate financial (2015) management systems (EMSs); unique The relationship between performance environmental management Cheng The analysis of the determinants of eco-
performance (CFP)” organisational resources and of green innovation and the competitive et al. (2014), learning Correia de Sousa innovations by distinguishing between
capabilities; proactive environmental advantage (Chen et al., 2006) (2006) different environmental areas such as
strategy energy use and water consumption
Empirical investigations on the relevance
of EMS for environmental management
and performance. This might also lead to
policy improvements for initiatives that
deal with environmental problems.
Academics are also invited to further
investigate issues related to the
implementation of EMS in large and
small-medium sized companies
(continued )
The evolution
innovation
of sustainable
research
Table 3.
directions (FRDs)
Findings and future
EJIM
Table 3.
Themes Authors of MP Main concepts Relations with GCS Relations with burst detection FRDs
Theme 3: “Green innovation Lee and Min (2015), Li et al. (2017), Institutional theory; resource-based Green product innovation is one of the Sustainable development Mirata and There is a call for empirical studies on
and internal and external Chen et al. (2018), Du et al. (2018), view; interaction between green key factors to promote environmental Emtairah (2005), sustainability non-European countries, which are still
drivers” Wang et al. (2020), El-Kassar and customer integration and green supplier sustainability and growth. Why and Rennings et al. (2006), learning Correia limited, especially on emerging countries,
Singh (2019), Xie et al. (2019), integration; green learning orientation how companies integrate de Sousa (2006), institutional theory which would be of great interest due to
Garcıa-Machado and Martınez- and ambidextrous green innovation; environmental sustainability Leyva-de la Hiz (2019), Yu et al. (2019), the fast industrialisation and the failure of
Avila (2019), Rabadan et al. (2019) green culture; cooperation (Dangelico and Pujari, 2010) Leyva-de la Hiz et al. (2019), emerging the strategy “grow first, clean-up later”
economies Ponomariov and Toivanen (Rock and Angel, 2007)
(2014), Quitzow et al. (2014), Chiarvesio There is a need for a clear identification of
et al. (2015) the benefit from environment-friendly
activities in terms of organisational and
financial performance (Rabadan et al.,
2019)
The link between the sustainability of the
agri-food sector and its profitability with
a win-win scenario
Scholars might consider investigating the
mediating role of green innovation in
green culture and environmental
performance through longitudinal
studies in order to make long term
comparisons and in different contexts
In future studies, other variables can be
investigated, such as green knowledge
integration capability, dynamic
capabilities and environmental
awareness. Furthermore, the associations
among green cultural, learning,
technological, market, and
entrepreneurial orientation in relation to
green knowledge acquisition and
ambidextrous green innovation, in
different contexts, could be considered in
the way they influence each other. For
example: How can green learning
orientation, green knowledge acquisition,
environmental organizational culture and
ambidextrous green innovation affect
each other?
(continued )
Themes Authors of MP Main concepts Relations with GCS Relations with burst detection FRDs
Theme 4: “The strategic Lee and Kim (2011), B€onte and Suppliers’ collaboration; technological Boons and L€ udeke-Freund (2013) Open innovation Li-Ying et al. (2018), Future studies might consider
determinants of green (non- Dienes (2013), Cuerva et al. (2014), integration; strategic environmental proposed a relationship between the Triguero et al. (2018), sustainability investigating the benefits of coordination
green) innovation” Cainelli et al. (2015) collaboration between suppliers and the adoption of new business models, SI Rennings et al. (2006), Massa et al. and collaboration with suppliers in the
buying company; in-house strategy; and firm strategy fields (2017) development of new green products. For
external strategy; cooperation strategy; example: How can the role of coordination
quality management systems (QMSs); and collaboration with suppliers in the
internal, external and hybrid resources development of new green products be
achieved?
Starting from the framework developed
by Cainelli et al. (2015) that considers
internal, external and hybrid resources,
however, cross country analyses are
needed to better understand the driving
forces that differentiate countries toward
eco-innovation among firms
Due to the increased interest in the
climate and energy policy effects on eco-
innovation in the EU organisational
innovations as leading forces in
technological development, future studies
could investigate this relationship among
different sectors and countries and make
comparative studies
“How can organisations create value in
environmental, social, AND economic
terms?” (Massa et al., 2017)
Scholars are invited to investigate how SI
activities can affect organisational
performance and create sustainable
competitive advantage
There is a need to create sustainable
value with new business model
implementation towards sustainability
and better understand how to implement
the stakeholders’ needs within the
organisation and how to design the
business model and what its role is in
achieving SI. Future research in business
models could investigate how formal
models are different from business
models with a sustainability lens (Massa
et al., 2017)
(continued )
The evolution
innovation
of sustainable
Table 3.
EJIM
Table 3.
Themes Authors of MP Main concepts Relations with GCS Relations with burst detection FRDs
Theme 5: “The interplay Borghesi et al. (2015), Castellacci Firm-specific characteristics and the The role of niche internal processes Institutional theory Leyva-de la Hiz The new taxonomy of green innovations
between policy, regulations and and Lie (2017), Kiefer et al. (2017), policies for different types of eco- (learning, networking and visioning) (2019), Yu et al. (2019), Leyva-de la Hiz by Castellacci and Lie (2017) requires
the green innovation” Kiefer et al. (2019), Horbach and innovation; policies for R&D and must be linked with niche external et al. (2019), policy Cainelli et al. (2020), further empirical studies to corroborate
Jacob (2018), Walton et al. (2019), innovation for carbon dioxide-reducing processes (Schot and Geels, 2008) research and development De Marchi this taxonomy especially in recently
Leyva-de la Hiz (2019), Garces- innovations; R&D capabilities; The drivers of green innovation and and Grandinetti (2013), Lee and Min developed countries
Ayerbe et al. (2019) relationships with universities or other green image–green core competence (2015) The synergistic effect of organisational
public research institutes; internal (Chen, 2008) learning, knowledge management and
factors; the role of resources, R&D capabilities on eco-innovation
competences, and dynamic capabilities performance
(RCCs) as drivers and barriers of Empirical studies on the role of internal,
different EIs towards circular economy; external, and hybrid resources in the
organisational learning; communication development of SI capabilities
and cooperation How do SI activities affect organisational
performance and create sustainable
competitive advantage?
Due to the increasing interest in the
strategic capabilities of eco-innovation in
achieving competitive advantage and
improving environmental performance and
green innovation in organisations and
supply chain (Kiefer et al., 2017), future
research might consider countries based on
institutional characteristics, development
level, or open versus closed economies to
analyse the role of dynamic capabilities,
resources and competencies as drivers of
sustainable innovation practices
Academics might consider different types
of stakeholders and investigate their effects
on the firms’ eco-innovation strategies
The relevance of organisational learning in
the development of strategic capabilities
(e.g. dynamic capabilities) for eco-
innovation, and these strategic capabilities
are best developed when intangible and
tangible resources of firms are aligned,
which is possible when there is a whole-of-
firm approach (Walton et al., 2019).
However, further empirical analyses are
needed to support this statement
Furthermore, the emerging topic of
institutional theory in sustainability
management calls for further investigation
of the impact of internal and external
factors on the development of the
innovation process while considering
stakeholder interests
Source(s): Developed by the authors
innovation, green technologies and green supply chain management and green culture have The evolution
emerged. The extant literature has mainly drawn attention to European countries (Demirel of sustainable
and Danisman, 2019; Triguero et al., 2013, 2016) while the empirical studies on non-European
countries are still limited, especially on emerging countries; this would be of great interest due
innovation
to the fast industrialisation and the failure of the strategy “grow first, clean-up later” (Rock
and Angel, 2007). Although there is increased attention to the environmental responsibility of
companies, the extent to which companies benefit from environment-friendly activities in
terms of organisational and financial performance is still not so clear (Rabadan et al., 2019).
The recent study by Rabadan et al. (2019) has found a link between the sustainability of the
agri-food sector and its profitability with a win-win scenario. However, more studies are
needed to verify if the results are consistent in the agri-food sector of different countries and
in other sectors. Green innovation was found to act as a mediating construct between green
culture and environmental performance (Garcıa-Machado and Martınez-Avila, 2019).
Scholars might consider investigating the mediating role of green innovation in the same
relationship through longitudinal studies in order to make long term comparisons and in
different contexts. The impact of environmental, organisational culture, green learning
orientation, and green knowledge acquisition on exploitative and exploratory green
innovations have been examined (Wang et al., 2020). In future studies, other variables
could be investigated, such as green knowledge integration capability, dynamic capabilities
and environmental awareness. Furthermore, the associations among green cultural, learning,
technological, market and entrepreneurial orientation in relation to green knowledge
acquisition and ambidextrous green innovation, in different contexts, could be considered in
the way they influence each other.
The analysis of theme 4 “The strategic determinants of green (non-green) innovation”
dealt with the strategic determinant of environmental innovations. Suppliers are recognised
as playing a key role in new product development through technological integration (Lee and
Kim, 2011). Three strategies are investigated: “in house strategy”, “external strategy” and
“cooperation strategy” as well as their effects on process innovations (B€onte and Dienes,
2013). The role of internal, external, and hybrid resources are investigated in environmental
innovation development (resource-based view) (Cainelli et al., 2015). It emerged that one of the
key factors in achieving environmental and economic success is green innovation, and the
suppliers’ involvement in green innovation has become a strategic approach. Future studies
might consider investigating the benefits of coordination and collaboration with suppliers in
the development of new green products. Starting from the framework developed by Cainelli
et al. (2015) that considers internal, external and hybrid resources, cross country analyses are
needed to better understand the driving forces that differentiate countries toward eco-
innovation among firms. The results of the analyses have also shown an increased interest in
the climate and energy policy effects on eco-innovation in the EU organisational innovations
as leading forces in technological development. Future studies could investigate this
relationship in different sectors and countries and make comparative studies.
Theme 5, “The interplay between policy, regulations and the green innovation” revealed
that the literature is now focusing on firm-specific characteristics, the policies for each type of
eco-innovation and the need to trigger firms to invest actively in green innovation (Borghesi
et al., 2015; Castellacci and Lie, 2017). Eco-innovations are becoming more and more prevalent,
and stakeholders are increasingly demanding that firms develop those internal strategic
capabilities to drive desired eco-innovation outcomes (Beuter J unior et al., 2019). Scholars are
experimenting with mechanisms to engage with stakeholders on eco-innovation strategies such
as communication and cooperation (Garces-Ayerbe et al., 2019). The new taxonomy of green
innovations that identified four groups of green innovators: carbon dioxide reducing, waste-
reducing, recycling innovators and pollution-reducing drawn up by Castellacci and Lie (2017)
requires further empirical studies to corroborate the taxonomy, especially in recently developed
EJIM countries. We found an increasing interest in the strategic capabilities of eco-innovation to
achieve competitive advantage and improve environmental performance and green innovation
in organisations and supply chain (Kiefer et al., 2017). Future research might consider countries
based on institutional characteristics, development level, or open versus closed economies to
analyse the role of dynamic capabilities, resources and competencies as drivers of SI. The MP
also showed the importance of communication and cooperation to successfully engage with
stakeholders and how it may have a positive impact on the eco-innovation strategy (Garces-
Ayerbe et al., 2019). Academics could consider different types of stakeholders and investigate
their effects on the firms’ eco-innovation strategies. The results also addressed the relevance of
organisational learning in the development of strategic capabilities (e.g. dynamic capabilities)
for eco-innovation, and these strategic capabilities are best developed when intangible and
tangible resources of firms are aligned, which is possible when there is a whole-of-firm
approach (Walton et al., 2019). However, further empirical analyses are needed to support this
statement. Furthermore, the emerging topic of Institutional theory (as also detected by the
Burst detection analysis) in sustainability management seems to require more studies to
investigate the impact of internal and external factors on the development of the innovation
process while considering stakeholder interests.
The analysis of the CGS (see Table 3) added other significant insights to the field and each
theme. Business models have emerged to change products, processes and organisational
form to be competitive on the market. Boons and L€ udeke-Freund (2013) proposed a
relationship between the adoption of new business models, SI and firm strategy fields. This
line of research between business models and strategy is attracting significant attention
leading to a critical research area, and a central question in sustainability research is “How
can organisations create value in environmental, social, AND economic terms?” (Massa et al.,
2017). Scholars are invited to investigate how SI activities can affect organisational
performance and create sustainable competitive advantage. There is a need to create
sustainable value with new business model implementation towards sustainability and to
better understand how to implement the stakeholders’ needs within the organisation as well
as to know how to design business models and what their role is in achieving SI. Future
research into business models could investigate how formal models are different from
business models with a sustainability lens (Massa et al., 2017).
SI has emerged as an ecosystem made of continuous interactions between several
stakeholders: the economy, society and other actors, as well as complementary collaborations
with other organisations (Zeng et al., 2017). However, it is not always straightforward to identify
the right stakeholders to involve when managing the sustainable innovation processes; thus,
future research might consider investigating methods and practices to reconcile any
misalignment emerging when collaborating with stakeholders with conflicting objectives.
Ultimately there is a need for studies that empirically investigate the organisational
performance outcomes of SI (Cillo et al., 2019). The limitations of quantitative studies, such
as omitting crucial variables, are encouraging qualitative analyses such as case studies, as this
approach can provide a more comprehensive view of the phenomenon under investigation.
However, the degree of generalizability is quite low; thus, a combination of the two methods is
suggested (del Rıo Gonzalez, 2009). Little attention has been devoted to the design elements of
environmental policy or to the efficiency of different environmental policy instruments.
Finally, the Burst detection analysis enabled us to detect some emerging trends in the field
that were not identified by the MP, analysis and the GCS, while confirming some of the
previous results. The most recent ones are: “the Institutional theory”, “Open innovation” and
“Export intensity”. Scholars are increasingly combining “the Institutional theory” with
innovation literature to investigate how the regulatory and normative pressures seem to
positively influence environmental innovations to form focal firms. However, future studies
might contribute to better understanding the organisational slacks faced by firms when
subject to these pressures. Stakeholder’s engagement seems to promote sustainability- The evolution
oriented innovations, which also influence firms’ financial performance. However, there is of sustainable
still a need for empirical studies to demonstrate how stakeholder’s involvement can benefit
firms’ capability to enhance innovations in relation to open innovation, which emphasises the
innovation
importance of external sources of knowledge for innovations (Ghassim and Bogers, 2019).
Thus, further studies might consider investigating how sustainable innovation can benefit
from open innovation and ultimately the impact on firms’ competitive advantage and
financial performance. As the burst detection analysis revealed, the role of “open innovation”
in SI also requires further investigation. Thus, firms should adopt a more collaborative
attitude to work together with partners and competitors to make quicker and effective
advancement in new products and processes. To do that, they need organisational and
individual capabilities to explore and integrate those external sources. Furthermore, the
European Commission is trying to implement policies towards open innovation, but these
initiatives mainly consider collaboration between institutions rather than end-users (Nielsen,
2020) which are considered to play a driving role for both sustainable and unsustainable
innovations (Verbong et al., 2019). There is increased attention on end-users in driving
transitions towards sustainability; however, there is still a lack of policy actions to create a
more supportive environment for sustainable end-user innovation.
10. Limitations
This study is not free from limitations. Firstly, the use of only one database for the extraction
of papers might result in the exclusion of some contributions that did not appear in the
Scopus database, even though this database is expected to cover all important journals and it
is the largest available. Secondly, the analysis of the MP included only the biggest connected
component; however, our analysis was made of 829 papers out of 1,108 papers meaning that
most of the papers were connected and considered in the analysis. Thirdly, the results of
SLNA are a consequence of the keywords’ selection process; therefore, different keywords
could have determined different results even though we tried to include all the most relevant
keywords for the scope of the study. Then we focus on academic journal papers in English,
and thus we have excluded papers in other languages. Despite the above-mentioned
limitations, SLNA analysis (through the detection of key contributions and trends in the field)
might still support practitioners, academics, and policymakers by illustrating the big picture
of the field and providing what they need to know (Huff, 2008). It might help newcomers
by identifying the main antecedents, key success factors and consequences of SI and
highlighting future avenues of research.
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Appendix The evolution
of sustainable
innovation
Start End
date date Burst Meaning Relevant references
2019 – Theory Institutional theory Leyva-de la Hiz (2019), Yu et al. (2019), Leyva-
de la Hiz et al. (2019)
2019 – Intens Export intensity Galbreath (2019), Choi and Yi (2018)
2018 2019 Open Open innovation Li-Ying et al. (2018), Triguero et al. (2018)
2015 2016 Eco Eco innovation Rashid et al. (2014), Mazzanti (2018)
2014 2015 Solar Solar power Olson (2014)
2014 2016 Emerg Emerging economies Ponomariov and Toivanen (2014), Quitzow
et al. (2014), Chiarvesio et al. (2015)
2011 2013 Research Research and De Marchi and Grandinetti (2013), Lee and Min
development (2015)
2011 2012 Design Eco design Negny et al. (2012)
2009 2016 Diffus Innovation diffusion Cantono and Silverberg (2009), Ozaki (2011)
2007 2013 Polici Policy Cainelli et al. (2020)
2007 2013 Choic Discrete choice model Frondel et al. (2007), Horbach et al. (2013)
2006 2007 Sustain Sustainability Rennings et al. (2006), Massa et al. (2017)
2005 2009 Learn Learning Correia de Sousa (2006)
2005 2010 Ecolog Ecological Yarime (2007)
2005 2007 Develop Sustainable Mirata and Emtairah (2005)
development
2004 2014 Triz TRIZ Yang and Chen (2011)
2002 2011 Abat Pollution abatement Brunnermeier and Cohen (2003)
2000 2010 Manag Environmental Cheng et al. (2014)
management
1999 2010 Water Water Marvin et al. (1999)
1999 2002 Environment Environmental Marvin et al. (1999), Gonzalez and Leon (2001)
innovation Table A1.
1997 2012 Technolog Technology Rennings (2000), Barbiroli and Raggi (2003) The list of bursts, their
1997 2010 System Innovation system Purkus et al. (2018) meanings, and relevant
1992 2010 Pollut Pollution Brunnermeier and Cohen (2003) references
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