Tracing the Reverse Relationship Among Environmental Benefits, Business Model Innovation, and Eco-Innovation: Does Cooperation Matter?

Abstract

This study investigates the direct and reverse relationships among environmental benefits, eco-innovation, and business model innovation (BMI), emphasizing the role of national and foreign cooperation among firms. We employed a structural equation model using data from the 2014 European Community Innovation Survey (CIS), the most recent survey to include questions on firms' environmental activities and eco-innovations. We studied 6827 firms from the Czech Republic (2363), Germany (3264), and Greece (1200). Findings confirm reverse relationships between eco-innovation and BMI and between eco-innovation and environmental benefits. This study challenges the notion that (foreign) cooperation positively impacts eco-innovation, highlighting a paradox that warrants further investigation. Additionally, we emphasize the reliance of companies on cooperative partners for BMI. Our results underscore the need for a holistic approach to eco-innovation in light of increasing global environmental challenges. Practical implications include heightened environmental awareness, adjustments to corporate business models, and enhanced cooperation within the analyzed countries.