Unconventional path dependence: how adopting product take - back and recycling systems contributes to future eco - innovations

Wang, Haiyan and Masi, Donato and Dhamotharan, Lalitha and Day, Steven and Kumar, Ajay and Li, Tong and Singh, Gurmeet (2022) Unconventional path dependence: how adopting product take - back and recycling systems contributes to future eco - innovations. Journal of Business Research, 142 . pp. 707-717. ISSN 0148-2963

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Abstract

Eco-innovation (EI) allows organizations to achieve environmental and economic gains but the conditions for
successful EI to occur are unclear. This paper proposes that firms can improve their EI performance by adopting
circular economy (CE) systems and technologies, such as product take-back and recycling. We thus explore an
unconventional, systems- and technology-driven path dependence dynamic leading to higher EI performance
because of prior CE commitments (instead of managerial initiatives directly aimed at fostering EI). An analysis of
724 firms shows that the adoption of such technologies and systems puts firms on a sustainability path: firms
benefit from making further changes to improve the functioning of these systems, which in turn create the
conditions and capabilities for future EIs. Environmental supply chain policies thus mediate the relationship as
the firm adopting take-back and recycling needs to involve outside partners in their administration. Neither
environmental management systems nor data protection policies act as mediators. This is the first quantitative
study that considers take-back and recycling and EI scores with cross-national-cross-sectorial sample size. The
results indicate that firms should see the introduction of CE systems and technologies as an opportunity for EI.

Item Type:	Journal Article
Subjects:	H Social Sciences > HC Economic History and Conditions T Technology > T Technology (General)
Divisions:	School of Business and Management (SBM)
Depositing User:	Gurmeet Singh
Date Deposited:	18 Jan 2022 23:25
Last Modified:	18 Jan 2022 23:25
URI:	https://repository.usp.ac.fj/id/eprint/13192

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