Scaling up sustainable innovation: Stakeholder ties, eco-product innovation, and new product performance

Abstract

Deriving insights from the stakeholder theory, this article investigates the impact of industry stakeholders on product innovation through eco-innovation. It further examines the moderating role of environmental R&D expenditure on this relationship. Using data from 212 firms, the results from this article reveal that (1) both intra and extra-stakeholder ties predict eco-innovation, (2) eco-innovation mediates the relationship between industry stakeholder ties and new product performance, and (3) environmental R&D expenditure has a positive moderating effect on the linkage between intra and extra-industry stakeholder ties and new product performance through eco-innovation. These findings contribute to our understanding of the role of industry stakeholders in the context of emerging markets by being a driver of new product outcomes. Implications for theory and practice are discussed.