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Journal of Business Ethics (2010) 95:471486 Springer 2010 DOI 10.1007/s10551-010-0434-0
Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability
Rosa Maria Dangelico Devashish Pujari
ABSTRACT. Green product innovation has been recognized as one of the key factors to achieve growth, environmental sustainability, and a better quality of life. Understanding green product innovation as a result of interaction between innovation and sustainability has become a strategic priority for theory and practice. This article investigates green product innovation by means of a multiple case study analysis of 12 small to medium size manufacturing companies based in Italy and Canada. First, we propose a conceptual framework that presents three key environmental dimensions of green product innovation such as energy minimization, materials reduction, and pollution prevention as identified in the life cycle phases of products. Based on insights gained from in-depth interviews, we discuss firms motivations to develop green products, environmental policies and targets for products, different dimensions of green product innovation, and challenges faced during developing and marketing of green products. Results from the study are then synthesized and integrated in a toolbox that sheds light on various aspects of green product innovation and provides solutions to challenges and risks that are faced by firms. Finally, implications for managers, academia and public policy makers are discussed.
KEY WORDS: environmental sustainability, green product innovation, life cycle analysis, manufacturing rms, Italy, Canada, multiple case studies
Introduction
A large number of trade magazines and numerous media reports in the past few years have shown that companies from disparate industries have launched or are planning to launch new green products. In recent years, academic research on green product innovation has also grown in interest (e.g., Chen,
2001; Chung and Tsai, 2007; Pujari et al., 2003, 2004; Pujari, 2006; Rehfeld et al., 2007). In a recent survey on companies thinking on climate change, McKinsey and Company (2008) nd that the greatest percentage of executives surveyed consider climate change strategically important, and about 60% take it into account in developing and marketing new products. According to Datamonitor, companies have so far launched 458 products that claim to be sustainable, environmentally friendly, or eco-friendly, and this number is likely to touch 1570 new green products launched this year (Greenbiz, 2009). For example,...