Does Ecological Sustainability Really Matter? Evaluation of Its Mediating Role in the Relationship between Innovation and Competitiveness.
| Autor | Jacomossi, Rafael Ricarclo |
| Cargo | Research Article |
INTRODUCTION
Organizational studies on the theme of competitiveness show the role of technological innovation as an instrument to promote productivity gains, improving the firms' competitive conditions (Gordon, 2016; Ichijo & Nonaka, 2007; Kalmakova, Bilan, Zhidebekkyzy, & Sagiyeva, 2021; Nelson & Winter, 1982). The traditional model, however, has been criticized for disregarding the environment while anchoring economic growth in the dimension of innovation. This model has shown to be incomplete, neglecting other factors (Barrichello, Morano, Feldmann, & Jacomossi, 2020; Feldmann, Jacomossi, Barrichello, & Morano, 2019) such as the ecological sustainability that, according to Beck (1992), Giddens (1991), Jacomossi and Demajorovic (2017), and Kalmakova, Bilan, Zhidebekkyzy, and Sagiyeva (2021), has proven to be legitimate in modern society.
For Castells (2016), productivity gains through efficiency do not compensate the carbon emissions resulting from increased consumption. Giddens (1991) states that modernity has a dark side that gradually becomes apparent. For the author, placing science and technology at the service of the industrialization process in search of ever-greater profits has caused an unprecedented modification of nature, degrading the resources and threatening the survival of present and future generations. Demajorovic (2003) corroborates these views, adding that infinite human potential to build knowledge brings uncertainty about the future, creating challenges for society to adjust its capacities to the increasingly rapid changes.
Organizations can respond to these challenges by guiding their decisions by using a process of rationality that emphasizes both economic and environmental gains (Faustenhammer & Gossler, 2011). Jacomossi and Demajorovic (2017) demonstrate that it is possible to develop a learning model for innovation in organizations that contemplates the environmental dimension.
The evolution of this debate led to a new element of analysis, eco-innovation, also known as environmental innovation. This element is used to verify the firms' conditions to innovate, considering the concerns with the environment (Angelo, Jabbour, & Galina, 2012; Hermundsdottir & Aspelund, 2021; Jacomossi & Demajorovic, 2017). Kammerer (2009) and Beise and Rennings (2005) define this type of innovation as one that arises at the organizational level and benefits the environment. It encompasses all organizational changes and novelties that seek to mitigate or eliminate its environmental impacts. Along with the environmental benefit comes an economic gain. By adapting their processes and adopting such practices, companies can increase their productivity and improve competitiveness, making rational use of resources (Horbach, Rammer, & Rennings, 2012).
In the debate on countries' competitiveness, Porter (1990) argues that this type of competitiveness has to do with the enterprises operating in the nations' territories, which means that countries, industries, and companies are elements of analysis that cannot be dissociated. Reports on nations' competitiveness, such as the studies of the World Economic Forum (WEF) (Schwab, 2019; Schwab, Sala-i-Martin, & Samans, 2017; Schwab, Sala-i-Martin, Samans, & Blanke, 2015; 2016), highlight the relationship between innovation and competitiveness. However, they do not address the issue of ecological sustainability as one of the potential drivers for improving productivity. The literature presents studies that indicate the role of innovation as a competitiveness driver, as well as research highlighting the importance of sustainability in this process. It is clear, therefore, the need to investigate these variables together. In this context, the research question built in this study is: Does ecological sustainability influence the relationship between innovation and the competitiveness of nations?
Thus, this study analyzes, at a macroeconomic level, the influence of ecological sustainability on the relationship between innovation and global competitiveness. Thus, it is expected that the present work can contribute to a better understanding of the importance of considering ecological sustainability in micro and macroeconomic strategies. Although several studies portray such influence at the level of firms, there is a need for research that presents these relations at the country level.
This work is composed, in addition to this introduction, by literature review sections involving the relationships between the variables studied (innovation, global competitiveness, and ecological sustainability), hypothesis and theoretical model construction, methodology used, as well as analysis and discussion of results, and conclusions.
LITERATURE REVIEW
Enterprises seek several goals, including high profit, competitiveness, and long-term survival. Besides, ecological sustainability has become a fundamental issue by business and non-business organizations since it leads to superior performance. Sustainability requires sufficient resources and capacities to be implemented (Zhang, Khan, Lee, & Salik, 2019).
The relationship between the variables innovation, global competitiveness, and ecological sustainability, seen in pairs, is the object of research, as shown in the following subsections. However, there is little research that relates the three variables concomitantly. Thus, the literature presented here follows this dynamic, which will support the proposed theoretical model, while simultaneously evaluating all relationships.
Innovation and global competitiveness
The classic explanation regarding the process of nations' growth and development is based on a combination of the following factors of production: cheap labor, an abundance of raw materials, and the availability of capital. The factor innovation is added to this discussion, based on Schumpeter (1934). From the author's studies, the economic competitiveness paradigm has been based on the capacity of companies and countries to innovate. Studies focusing on the performance of firms and nations point to the role of technological innovation as a crucial inducing factor to explain economic growth and wealth generation (Ichijo & Nonaka, 2007; Mytelka, 2000; Nelson & Winter, 1982; Pavitt, 1984; Schumpeter, 1934).
The scope of studies that highlight innovation as one of the main driving forces for economic development and business competitiveness--both in the academic and organizational fields -has grown significantly (Barrichello, Santos, & Morano, 2020; Sukumar, Jafari-Sadeghi, Garcia-Perez, & Dutta, 2020; Torres, Pagnussatt, & Severo, 2017). The research by Torre, Pagnussatt, and Severo (2017) highlighted the main concepts of innovation as a source of competitive advantage, showing that it should be one of the organizations' strategies to differentiate from competitors and to contribute to their sustainability over time.
Microeconomic studies, on the other hand, have been dedicated to examining the function of innovation in increasing the performance of organizations. Porter (1990) analyzes competition in various sectors of the economy in several countries, showing that the most successful companies are those that better use technological knowledge, dealing effectively with innovation. The author concludes that the progress and development of countries are related to how developed their business environments are, enabling them to innovate faster than their foreign rivals.
Additionally, many studies (Barrichello, Morano, et al., 2020; Denkowska, Fijorek, & Yna Wegrz, 2020; Dima, Begu, Vasilescu, & Maassen, 2018; Quan, Xiao, Ji, & Zhang, 2021) point out the importance of education on competitiveness of countries. The findings of these studies highlight the importance of innovation and education as influencers of countries' competitiveness. Policy development concerning the workforce's lifelong learning possibilities and the focus on R&D activities can contribute to the competitiveness of countries.
As can be seen, the studies show that the relationship between innovation and competitiveness is relevant, as well as it is important to understand the role of ecological sustainability as a way to reinforce the innovative practices of companies and countries.
The relationship between innovation and ecological sustainability
Human life depends on the environment, but the high-speed exploitation of natural resources has increased degradation and jeopardized nature's capacity for regeneration (Hardin, 1968; Li et al., 2021; Morano, Moraes, & Jacomossi, 2018). In this context, the companies have contributed to the worsening of this situation (Melville, 2010). Moyano-Fuentes, Maqueira-Marin, and Bruque-Camara (2018) examined the relationship between technological innovation and engagement in environmental sustainability, considering the firms' institutional and competitive environment. The most innovative companies are also the ones more engaged in environmental sustainability, looking for satisfying economic restrictions established by the competitive environment and the institutional pressures from all the stakeholders.
Sustainability in the context of innovation can be seen in the development of innovative green products (Wu et al., 2021). Green product innovation is a fundamental factor for achieving environmental sustainability, growth, and better quality of life (Angelo et al., 2012; Zhan, Tan, Ji, & Tseng, 2018). A priority for academia and organizations nowadays is to develop the understanding that environmental innovation is a result of the combination of innovation and sustainability (Cheng, Yang, & Sheu, 2014). Companies must incorporate environmental sustainability into product development, observing the different dimensions and types of ecological products. In turn, public policies must act as an active function in stimulating demand for green products by subsidies and discounts for green markets in emerging stages...
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