Drivers in the Eco-Innovation Road to the Circular Economy: Organiational Capabilities and Exploitative Strategies

Bahman Peyravi · Artūras Jakubavičius

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Environmental Sustainability in Business Sustainable Supply Chain Management Sustainability and Innovation in Business

Abstract

This article contributes to the empirical literature on the drivers of eco-innovation within the context of an organizational capability and exploitative strategies towards a circular economy. It explores the dynamics of the determinants of eco-innovation. The aim of this study is to contribute to this debate by analyzing evidence regarding the different factors influencing organizational capabilities in “transformative innovation” to support transition while eliminating obstacles to sustainability. The practical contribution of this paper is a consolidated, complete framework of eco-innovation that provides substantial insights to practitioners and facilitates the spread of eco-innovative practices. This study will benefit policy makers, key institutions, and firms to leverage the organizational capability with the effective implementation of eco-innovation processes towards a circular economy, where structural changes and transformative eco-innovation are the main determinants. However, the exploration of eco-innovation dynamics within a circular economy is still widely disregarded, especially concerning the trends and dynamics in policy-making processes and strategy development. The research employed the multi-criteria SAW method. The purpose of the suggested methodology is to establish the criteria for ranking the drivers of eco-innovation adoption. Research findings indicate the nexus between the drivers in eco-innovation and social behavior, eco-design, infrastructural changes, and political approaches. This study provides a comprehensive framework for understanding the drivers of eco-innovation towards a circular economy with regard to organizational capabilities and exploitative strategies.

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References

2017Conceptualizing the circular economy: An analysis of 114 definitions 2006The Oxford Handbook of Innovation 2015The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context 2000Redefining innovation — eco-innovation research and the contribution from ecological economics 2017The circular economy: New or Refurbished as CE 3.0? — Exploring Controversies in the Conceptualization of the Circular Economy through a Focus on History and Resource Value Retention Options 2007Determinants of environmental innovation—New evidence from German panel data sources 2012Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull 2005A tale of two market failures: Technology and environmental policy

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