The influence of eco-innovations activities on international competitiveness of the firms: Marmara Region chemical industry example

The link between eco-innovation and competitiveness has been the subject of extensive debate, with research shifting from a focus on the costs of greening firms to its implementation. This study attempts to contribute to the debate by highlighting the case of the Turkish chemical industry. Using data derived from computer-assisted telephone interviews across 159 companies, we explore the influence of three types of eco-innovation (organizational, process and product) on the international competitiveness of firms. Additionally, our study extends the scope of this tripartite model of eco-innovation by accounting for domestic market performance and the maturity level of innovations as moderating variables. The proposed relationships are tested using multiple regression method. The results of the study reveal that eco-organizational innovation has negative influence on international competitiveness whereas eco-process and eco-product innovation has neutral relationships with international competitiveness. The findings have shown that " it does not pay to be green" in terms of competitive performance however moderator variables change the influence of eco-innovations on international competitiveness for certain type of eco-innovations. First, domestic market performance and eco-organizational interaction positively influence international competitiveness whereas domestic market performance and eco-process innovation negatively correlates. The findings proved that the relationship between eco-organizational and eco-process innovation and international competitiveness is moderated by the maturity level of innovation within the companies. These empirical findings elicit eco-innovation activities in developing economies is still premature to gain a competitive advantage in international markets. Therefore, this study could support shaping business policies and strategies regarding promoting ecological innovation activities in developing economies