Energy-saving technologies and firm growth in the manufacturing industry A quantitative study on how resources- and energy-saving technologies affect firm growth in the manufacturing industry in the Netherlands
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2022-08-25
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en
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Manufacturing firms play a significant role in the overall CO2 output. Often environmental sustainability is associated with limiting firm growth, but there is no consensus among researchers. Product differentiation literature and stakeholder theory provide arguments for material and immaterial advantages obtained by environmentally friendly production resulting in firm growth. The goal of this study is to explore firm growth potential resulting from environmentally friendly production. Therefore, the research question of this study is as follows: to what extent does the adoption of energy and resource saving technologies affect firm growth by driving sustainable product development and/or through autonomously impacting customer satisfaction? A quantitative study has been conducted to answer the research question. Data from the European Manufacturing Survey was used. The survey consisted of 177 Dutch manufacturing firms with at least 10 employees. A multinomial logistic regression, a binary logistic regression and multiple regression analysis were conducted to test the hypotheses. The results show that sustainable process innovation has a positive effect on sustainable product innovation. However, sustainable process innovation did not have a positive impact on customer satisfaction. Neither sustainable product innovation nor customer satisfaction autonomously mediate sustainable process innovation to firm growth. So, this research concludes that environmentally sustainable technological investments do not lead to firm growth via sustainable product development or customer satisfaction. Organizational innovations that do not focus on environmental sustainability appeared as an important bycatch and was significant for driving sustainable product innovation, customer satisfaction and employment growth. Also, organizational innovations that do not focus on environmental sustainability should be explored further because this appeared as an important driver of environmental sustainability. Based on this research, managers aiming to achieve firm growth should not focus on environmental sustainability. Moreover, managers aiming to achieve environmental sustainability and employment growth should focus on organizational innovations that do not focus on environmental sustainability.
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Faculteit der Managementwetenschappen