Eco-innovations and firm economic performance in developing countries: Evidence from Moroccan firms

Abstract

We witness a growing interest in environmental issues which prodded companies to look for ways to reduce environmental impact through eco-innovations (EI). Consequently, numerous researches tried to explore EI impact has on firm performance and clarify its modus operandi. Still, largely discussed in developed countries, the subject remains under dealt in developing nations. This study tries to enrich literature by examining the question in a developing country context. Using PLS-SEM on survey-data gathered from Moroccan companies, we discuss different EI effects on firm performance, precisely product EI, process EI, organisational EI and eco-efficiency. The empirical evidence confirms that the effect is heterogeneous. It is significantly positive in the case of process and organisational EI, while it remains insignificant when we deal with product EI or in the case of eco-efficiency. Generally, the EI effect is not similar but changes according to the EI type considered.