Do Firms’ Slack Resources Influence the Relationship Between Focused Environmental Innovations and Financial Performance? More is Not Always Better

Stakeholder engagement mechanisms and their contribution to eco‐innovation: Differentiated effects of communication and cooperation

“…Some of the distinctive features or eco‐innovation are what makes stakeholder integration so important in the process. For example, environmental innovations are characterized by long‐term orientation and a high level of uncertainty compared with other innovations in the firm (Leyva‐de la Hiz, Ferrón‐Vílchez, & Aragón‐Correa, ). In these conditions, to drive environmental innovations to obtain positive results requires detailed knowledge and adaptation to the socio‐cultural setting and the present and future tastes, interests, and needs of stakeholders.…”

Energy eco‐innovations for sustainable development: Exploring organizational strategic capabilities through an energy cultures framework

“…In addition to literature on defining and classifying eco‐innovations (Andersen, ; Ekins, ; Epicoco, Oltra, & Saint Jean, ; Kiefer, Carrillo‐Hermosilla, Del Río, & Callealta Barroso, ; Kiefer et al, ), other key themes in the eco‐innovation literature include the drivers or determinants of eco‐innovation (del Rio, Morán, & Albiñana, ; Horbach et al, ; Triguero et al, ; Marin, ; Jové‐Llopis & Segarra‐Blasco, ; Horbach & Jacob, ; Aragon‐Correa & Leyva‐de la Hiz, ), measuring eco‐innovation (Arundel & Kemp, ), the relationship between eco‐innovation and firm performance (Aguilera‐Caracuel & Ortiz‐de‐Mandojana, ; Leyva‐de la Hiz, Ferron‐Vilchez, & Aragon‐Correa, ; Zhang & Walton, ), the relationship between eco‐innovation and competitive advantage (del Río et al, ; Ketata et al, ; Lee & Min, ; Kiefer et al, ), and the role of intermediaries (Kanda, Hjelm, Clausen, & Bienkowska, ). Although there is a literature on the different types of eco‐innovations and the classification of such, literature on how eco‐innovations are implemented (Cheng & Shiu, ; Morgan, Vorhies, & Mason, ) or managed (Suarez‐Perales, Garces‐Ayerbe, Rivera‐Torres, & Suarez‐Galvez, ) Seebode, Jeanrenaud, & Bessant, ) is scant, especially at the firm level and internally focused (Kiefer et al, ).…”

The roles of network embeddedness, market incentives, and slack resources in the adoption of clean technologies by firms in developing countries

“…While there are different types of slack, including, for example, human resources or operational capacity (Leyva-de la Hiz, Ferron-Vilchez, & Aragon-Correa, 2018;Voss, Sirdeshmukh, & Voss, 2008), our work follows that of researchers who focus on the availability of financial slack (Berrone, Fosfuri, Gelabert, & Gomez-Mejia, 2013;Waddock & Graves, 1997). Financial slack can be in the form of unabsorbed cash or credit lines or may be absorbed in the form of excessive investments in ongoing operations.…”

“…There are diverging views in the literature on whether absorbed and unabsorbed financial slack fosters firm innovation, noting that innovation is important for the adoption and diffusion of clean technologies (Ahuja et al, 2008;Kemp & Volpi, 2008). Several researchers highlight that the existence of financial slack helps in the allocation of investment to innovative projects (Leyvade la Hiz et al, 2018;Damanpour, 1991) while too little slack is likely to inhibit innovation (Nohria & Gulati, 1996). Although investment in environmental innovation is considered to pose more risk (Berrone et al, 2013), research finds that companies increasingly identify environmental innovation as bringing long-term strategic opportunities (Huang & Li, 2017).…”