Internationalization and economic performance: The mediating role of eco-innovation. (10th January 2018)

• Record Type: Journal Article
• Authors: Hojnik, Jana; Ruzzier, Mitja; Manolova, Tatiana S.
• Is Part Of: Journal of cleaner production. Volume 171(2018)
• Page Start: 1312
• Page End: 1323
• Publication Date: 2018-01-10
• Subjects: Eco-innovation -- Firm performance -- Internationalization -- ISO14001 -- Mediating effect -- Sustainability; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2017.10.111
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: This study explores the relationship between internationalization and firm economic performance by investigating the mediating effect of eco-innovation. Using data from 151 Slovenian internationalized companies and structural equation modeling, we find that internationalization is significantly and positively associated with firm-level economic performance and that eco-innovation partially mediates this effect. These findings strongly indicate that environmental sustainability and the adoption of eco-innovation cannot be neglected when serving foreign markets. Thus, our study emphasizes the role of eco-innovation and speaks to whether or not eco-innovation should be adopted and integrated in firm-level strategies in order to improve economic performance. Highlights: Adoption of eco-innovation is an effective strategy to improve firm performance. Companies that operate in foreign markets are more likely to adopt eco-innovation. Eco-innovation translates internationalization into improved firm performance.