Leveraging business failure to drive eco‐innovation adoption: An integrated conceptual framework

Abstract

Despite a growing body of research on business failure and eco‐innovation, these two streams of research have developed in isolation, thus lacking an organizing framework to account for how businesses can utilize peer companies' failures as a source of eco‐innovation. This study addresses this gap in the current literature by advancing an integrated conceptual framework that illuminates failure as a catalyst for learning and the mechanisms through which organizations can enhance their environmental innovation efforts and competitiveness. The study proposes a multidimensional 2 × 2 typology encompassing dimensions of process and product eco‐innovation, alongside two underlying factors of business failure. These factors further elucidate the mechanisms through which organizations can learn from others' failures, ultimately becoming more resilient and adaptable in the face of new challenges. The implications of this analysis for future research and practice will be further examined, shedding light on promising domains for learning from failure and fostering innovation.