Determining Factors on Green Innovation Adoption: An Empirical Study in Brazilian Agribusiness Firms

Abstract

Green innovation has become one of the mainstream concepts to address environmental issues. However, research on green innovation, especially at the firm level, is still evolving. Building upon the natural resource-based view (NRBV) and resource-based theory (RBT) lenses, this study proposes a research framework to explore determining factors of green innovation adoption (GIA) in the Brazilian cassava agribusiness sector. The research design from the semi-structured interviews method was employed in firms associated with ABAM (Brazilian Association of Starch and Cassava Producers) and SIMP (Union of Cassava Producers in Paraná). The findings suggest that behavioral factors for GIA, such as collaborative behaviors, productivity, safety behaviors, and green behaviors, are directly associated with other determining factors, such as knowledge, operating costs, stakeholder pressure, economic benefits, information access, customer assessment, organizational compatibility, and business support. Furthermore, GIA can lead to the effective implementation of sustainable practices to enhance economic performance and effective environmental management. The originality of this work stems from including behavioral factors for managers’ decision-making regarding resource allocation for GIA. It also includes a guideline to increase competitiveness in active green markets. It also contributes to a vision of GIA to evolve NRBV and RBT theories.

Innovation adoption in the agri-food system: a model proposition

“…There is a certain difficulty in bringing knowledge and convincing people inside the company that this is something feasible, that it can be part of our portfolio." This statement exemplifies the required level of tacit knowledge on the part of employees that demands efforts both for understanding and adoption, as shown in the literature (Silva et al, 2023).…”

“…Knowledge and investment in R&D, once considered a privilege, have become a development factor for progress in the agri-food system (Silva et al, 2023;Davis & Goldberg, 1957;Malassis, 1973;Massa & Testa, 2017; Montes de Oca Munguia, Pannell & Llewellyn, 2021;Pavitt, 1984;Timpanaro et al, 2023;Viero & Souza, 2008).…”

“…The adoption of innovation is not a one-time event, but a process of additions to current technologies and processes of companies, accumulation, and integration of knowledge. These process additions must be compatible with existing processes and routines (Silva et al, 2023;Rogers, 2003).…”

“…In the organizational context, complex innovations require a level of tacit knowledge on the part of employees that demands efforts both for understanding and adoption. Thus, this is a dimension that has a negative influence on adoption, since the higher the degree of complexity, the lower the adoption rate of the innovation will be (Aamir et al, 2023;AlBar & Hoque, 2019;Silva et al, 2023;Rogers, 2003).…”

“…This need for adjustments to existing processes is cited in the literature as something that influences the innovation adoption, since the adoption is not a one-time event, but a process of additions to current technologies and processes of companies, accumulation, and integration of knowledge. The reports demonstrate that the new processes may not have been carried out in the best way, negatively impacting the adoption of alternative proteins (Silva et al, 2023;Rogers, 2003). Some interviewees cited that the lack of technology in Brazil brought the need to enter the market via international partnerships, which greatly increased the cost of products, making them unattractive to consumers, as can be seen in the speech of I16: "The price index tends to work about 120%, 130% above animal protein.…”