The Decision of Eco-Innovation Scope in Service Sector: The Effects of Market Demand, Environmental Proactivity, and Technology Competency

Received:October 14, 2017  Revised:October 16, 2017

Key Words:  Eco-innovation scope; market demand; environmental proactivity; technology competence; open innovation

Author NameAffiliation
Yi-Chuan Liao* Shandong University 
Kuen-Hung Tsai0 National Taipei University 

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Abstract:
      This study investigates how the market demand, proactive environmental strategy, and innovation competence affect service firms in pursuit of environmental innovation portfolio. Further, this study argue those linkages vary with the degree of openness. The sample used to test the hypotheses was obtained from the Community Innovation Survey in Taiwan. A sample of 1717 service firms is analyzed. A zero-truncated negative binomial approach is conducted to verify the hypotheses. The results indicate that market demand, proactive environmental strategy, and innovation competence have positively effects on environmental innovation portfolio. Further, the open innovation perspectives play a moderating role. Specifically, firms with proactive environmental strategy are more likely to conduct environmental innovation portfolio under high level of search breadth and depth strategy. Moreover, firms with sufficient innovation competence are able to draw on search breadth strategy for strengthening their competitive advantage.

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