Environmental Engineering Reference
In-Depth Information
The linkages to suppliers had a significant positive effect on the probability of
eco-innovation (Roper et al.
2008
). Cooperation with suppliers can increase the
likelihood of engaging in both product and process innovation (Doran and Ryan
2012
). The remaining external factors have been found to have no significant
impact on the likelihood of eco-innovation.
Competitors' successful sustainable products may force a firm to change its
practices in order to stay in the competition. If a competitor stay behind in sus-
tainable products development process, this may give the firm an opportunity to
acquire a competitive advantage (Alblas et al.
2014
). If a competitor fails it will be
a sign that he committed some mistakes or chose wrong direction of development.
Manufacturers are also internally triggered to boost sustainability. By improv-
ing the sustainability of products and operations, manufacturers assume they can
cut costs, improve quality, acquire a green and social image, through which a com-
petitive advantage can be sustained or gained (Forsman
2013
).
The performance of internal R&D may also act to develop internal resources
and the absorptive capacity of the firm which can be leveraged for the introduction
of new eco-innovations (Cohen and Levinthal
1990
).
Firms which build organizational capabilities in areas such as pollution control,
green sourcing, green product design and efficient energy use are most likely to
eco-innovate. Many argue that the more innovative company and the more knowl-
edge it has accumulated, the higher its capacity to apply these factors to environ-
mental innovation (Kemp and Foxon
2007
).
Internal drivers include also awareness of shareholders, their open-minded atti-
tude for new ideas, and middle management involvement. Many firms have real-
ized the importance of sustainable development and the dangers of a deteriorating
global environment (Tseng et al.
2009
). This is particularly true in the vehicle
manufacturing industry (Hoffmann
2007
).
4 Sustainable Strategies in Supply Chains
There is a growing pressure worldwide to deliver products and services which
are environmentally friendly. It may lead to the redesign of products and
production processes so as to reduce waste and pollution which is a side effect
of manufacturing process. Green et al. (
2012
) assumed that environmental
sustainability must be adopted as a strategic imperative, incorporated as a key
part of the organization's mission. The incorporation of eco-efficiency strategy
into the mission refers to the development of eco-efficient processes, products
and services, performance measurement encompasses the methods and indicators
for eco-efficiency to assess the environmental performance and to cascade the
environmental strategy within the supply chain (Rossi et al.
2013
). Over recent
decades, manufacturing organizations have shown a growing interest in managing
the sustainability of their operations, supply chain, and products (Alblas et al.
2014
). With increasing concern about environmental issues from customers,
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