On the drivers of eco-innovation: empirical evidence from China

While identification of the drivers of eco-innovation in firms is a popular topic in the literature, many questions about these drivers in developing countries remain unanswered. The present study aims to determine empirically the primary factors that influence adoption of eco-innovation in Chinese firms. To achieve this, a conceptual model is developed and tested on a large database of firms from various industries, using hierarchical regression analysis. The study reveals that eco-innovation is triggered by a mixture of internal and external drivers. However, in China, the external pressures from environmental regulations, customersʹ green demands, and competitors affect eco-innovation partially through internal drivers. The analysis further shows that firmsʹ integrative capability—the ability to adopt appropriate eco-innovative responses by combining internal and external capabilities—partially mediates the relationship between drivers and eco-innovation performance. Moreover, firms that have more efficient external networks tend to conduct more eco-innovative activities. This study contributes to a more detailed understanding of the factors that initiate and boost eco-innovation.