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Institutional Perspective on the Drivers of Green Innovations in Firms

Institutional Perspective on the Drivers of Green Innovations in Firms
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Author(s): Wiboon Kittilaksanawong (Saitama University, Japan)
Copyright: 2016
Pages: 11
Source title: Handbook of Research on Green Economic Development Initiatives and Strategies
Source Author(s)/Editor(s): M. Mustafa Erdoğdu (Marmara University, Turkey), Thankom Arun (University of Essex, UK)and Imran Habib Ahmad (Global Green Growth Institute, South Korea)
DOI: 10.4018/978-1-5225-0440-5.ch019

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Abstract

In recent years, firms have increasingly engaged in green innovations in response to mounting pressures on environmental protection. Regulative and normative institutions are the main drivers of this response, while its strength is contingent upon a firm's deficiency gap and resource profile. The entry into this emergent industry of diversifying incumbents is usually determined by regulative and economic opportunity while the entry of entrepreneurial start-ups is more influenced by the sociocultural environment. Under the industry deregulation, most incumbents tend to become more focused on their core competencies developed during the regulated period unless they have prior experience in green innovations. Corporate governance plays an important role in implementing green innovations because these environmental initiatives go beyond compliance and require substantial long-term resource commitment that has significant strategic implications.

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