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This book provides a richly illustrated study of sustainability, innovation and entrepreneurship. Specifically, it examines the ways in which governmental policies and practices modify the social conditions necessary to promote innovation in businesses and by so doing impact economic development. Exploring topics such as green innovation, green customer capital, smart cities, green entrepreneurship and environmental responsibility, this book presents some of the most current research and best practices in the field.

In today’s global economy, strategies, policies and practices that address the negative effects of human activity on the environment need to be incorporated into the business framework in order for companies to achieve a sustainable competitive advantage. Around the world, such changes have already resulted in a broad range of products, production methods and technical features that ensure environmental protection. At the same time, the mass media’s communication of a deteriorating earth have motivated a growing number of citizens in both developed and developing nations to modify their consumption habits towards more ecological products. Consequently, an increasing number of companies are reacting to these changes in business and legal frameworks and consumer preferences by investing in new forms of green innovation or “eco-innovation” designed to promote both environmental and corporate sustainability. For example, Hewlett-Packard eliminated lead from its welding process; Wal-Mart reduced the emissions of their suppliers; and Cisco, Dell and IBM are investing in smart grids. This volume showcases pioneering efforts among companies, citizens, and government agencies that are moving from theory to practice by placing sustainability at the core of their development strategies.



Chapter 1. The Route Towards Sustainable Innovation and Entrepreneurship: An Overview

To what extent can the introduction and proactive embracement of proactive corporate environmental strategies, processes and activities lead to more innovative and entrepreneurial firms? Might sustainability be a core issue while attempting to cope with some of the world’s main challenges? This chapter presents some insights with regard to sustainable innovation and entrepreneurship, two topics that are receiving increased attention at the academic and managerial levels. Moreover, we underline the key contributions of the different chapters included in this book.
Antonio Leal-Millán, Marta Peris-Ortiz, Antonio L. Leal-Rodríguez

Chapter 2. Fostering a Relationship Learning Context as a Driver of Green Innovation Performance and Green Customer Capital

Sustainability is a popular topic within the current literature on the fields of management and economics. There are plenty of studies that empirically address the ties between strategic management (i.e. knowledge management) topics and corporate environmental performance. However, there is a scarcity of empirical studies examining the combined effects of promoting a relationship learning context on green innovation performance and green customer capital. This chapter develops a research model that links relationship learning, green innovation performance and green customer capital and empirically tests the research hypotheses through Partial Least Squares (PLS-SEM) analysis. Our results suggest that firms should make an effort and invest in resources to enhance their relational capital. Besides, in order to create green customer capital it is advisable that firms are able to transform this relationship learning into green innovative outcomes.
Gema Albort-Morant, Silvia Martelo-Landroguez, Antonio L. Leal-Rodríguez

Chapter 3. Smart Cities, Innovation and Sustainability: Which Role for Cities in Fostering “Green” Entrepreneurship?

This chapter aims at theoretically linking entrepreneurship and institutional conditions in the case of “smart cities”. After discussing how agglomeration economies shape entrepreneurship through the main relevant body of literature, the chapter articulates on the concept of “smart city” and presents a newly collected dataset on a “smart city” for the Emilia-Romagna Region in Northern Italy. Elements that drive improvements in the “smartness” of a city are presented in order to derive policy implications and the theoretical linkages between entrepreneurship, particularly “green” entrepreneurship, and a peculiar case of such an institutional setting as a “smart city”. The absence of proper data to test for a bi-directional causal link between entrepreneurship and smart city is discussed as a limitation of the current analysis and as a research line that deserves further investigation.
Claudia Ghisetti

Chapter 4. How Cultural Beliefs and the Response to Fear Appeals Shape Consumer’s Purchasing Behavior Toward Sustainable Products

This study examines how cultural beliefs and other cognitive processes related with the response to fear appeals can contribute to explain why consumers choose to purchase goods produced by sustainable companies. For this purpose, it tested the Cultural Cognition Theory and the Protection Motivation Theory as determinants of consumers’ purchasing behavior. There are two independent ordered probit regression models that examine the relationships between the proposed independent variables and the behavior of respectively punishing non-sustainable companies and rewarding sustainable companies. Results show that the more egalitarian and the less hierarchical individuals are, the more they will reward sustainable companies. Besides, consumer’s behavior toward the companies is determined by their perception of environmental threat and their perceived response efficacy. These outcomes are relevant for companies seeking to differentiate their products and their image to improve the positioning in the market, and for governments aiming at increasing citizens’ awareness toward global climate change.
Nuria Rodríguez-Priego, Francisco J. Montoro-Ríos

Chapter 5. Sustainable Social Management: The Case of Co-operatives

Co-operative societies are significant in Andalusia, given the fact that the regional Social Economy leads the national outlook. Scientific literature generally supports their socioeconomic impact and business social responsibility, which are studied, as a whole rather than in detail, with regards to environmental aspects. Despite the global situation regarding the need to enhance energy efficiency, the manner in which these co-operatives take it into account is not clearly shown. Consequently, this research provides a series of effective measures for CO2 emission mitigation and energy efficiency improvement. Thus, the aim was to understand the sustainable responsibility of co-operatives by means of CO2 emission evaluation and their sources. Additionally, this research enquires into the available supporting economic incentives that are proposed and describes effective mitigation measures supported by the regulations regarding prevention and environmental quality. A participatory analysis of the selected co-operatives was also performed with a view to defining economic-environmental indicators and to provoking a gradual improvement of sustainability concerning their performance. The outcomes of this research reveal the scarce concern of companies with regards to the energy consumption and the economic and environmental impact. In conclusion, co-operatives need to optimise the social management from defined environmental practice in order to modify their behaviour. Their strategic direction has to encompass climate change risks and opportunities in their analysis and control systems. In this sense, this clearly specific commitment of co-operatives establishes a rising tendency to guarantee a stable productive model with minor atmospheric pollution.
Macarena Pérez-Suárez, Daniel Antón

Chapter 6. Improving Environmental Management Systems by ISO 9001 in the Spanish Hospitality Sector

As the Knowledge Management discipline continues to evolve, socialisation, externalisation, combination and internalisation remain as key management practices for the creation of knowledge which enables organisations to successfully address environmental challenges. This paper examines the relevance and importance of an ISO 9001 certification as an enabler of Nonaka and Takeuchi's SECI model and the processes of reusing and updating the environmental knowledge of an organisation. These relationships are examined through an empirical study of 87 companies in the Spanish hospitality sector using repeated measures ANOVA validated by factor analysis. The study has direct implications for management practice as ISO 9001 represents a long-term programme to change, and a proactive way to improve knowledge management practices. Therefore, in order to consolidate knowledge management practices, companies need to provide and support organisational structures as ISO 9001.
Aurora Martínez-Martínez, Juan Gabriel Cegarra-Navarro, Alexeis García-Pérez

Chapter 7. Social Entrepreneurship and Upgrading in Emerging Economies: The Indian Case of Industree and Its Brand Mother Earth

The possibility of realizing production systems which deliver high social, environmental, and economic performance has gained attention in internationalization studies at large. While the literature has focused on large firms from Western countries, we investigate the role of firms from emerging economies (EE) in supporting upgrading and improving the social and economic conditions of local producers while delivering a quality product targeting a sophisticated market niche. This chapter present evidence of an Indian firm specialized in the home and fashion industries (Industree), which successfully improved social and environmental conditions along its value chain through the social entrepreneurship approach. This case study shows that also EE firms can promote social and economic upgrading among their suppliers and that economic upgrading is necessary for the attainment of social upgrading. Design and retail, usually prerogatives of developed country firms, are key factors in supporting the achievement of success in both dimensions.
Marco Bettiol, Valentina De Marchi, Eleonora Di Maria

Chapter 8. The Relationship Between Revenue and Environmental Responsibility: A Causal Study Using Reputation in the Hotel Industry

The tourism sector and, in particular, the hotel industry are aware of the environmental problems generated by their activities. This industry now must take into account the progressively deeper sensitisation of stakeholders to the environment and the exigencies that result from implementing responsible strategies when managing hotel activities’ settings. Hotels thus need to remain alert to their stakeholders’ demands in order to offer products and services compatible with these requirements. The long-term benefit of this awareness is more competitive and profitable companies. This study focused on determining to what extent hotels’ consciousness of environmental responsibility generates a positive impact on profitability, as represented by RevPAR, a performance metric specific to the hotel industry. The research also included examining to what extent hotels’ reputation has a mediating effect in this relationship. The proposed model was tested with a sample of 230 hotels located in Spain, using the partial least squares method of assessing structural equation models. The results reveal that environmental sustainability has a significant positive impact on RevPAR and that reputation acts a mediating factor in this context. Thus, hotel companies need to bear in mind that corporate social responsibility policies regarding the environment are not an undesirable cost but rather an investment that ensures long-term, sustainable financial returns.
José Manuel Mariño-Romero, Ana María Campón-Cerro, José Manuel Hernández-Mogollón, José Antonio Folgado-Fernández

Chapter 9. Green Consumer Segmentation: Managerial and Environmental Implications from the Perspective of Business Strategies and Practices

With the new millennium, environmental concern entered a new phase, with stricter governmental regulations and incentives. Currently, within environmental issues, there is a broader challenge to commitment with economic and social goals. This is motivating companies and organizations to participate in transformation processes with the aim of minimizing the negative impacts of their activities. Within this context, new business philosophies, emerged empowering organizations to consider sustainability issues that have come to be viewed as an innovative and differentiating factor, providing competitive advantages (Fraj-Andrés, Martinez-Salinas, & Matute-Vallejo. Journal of Business Ethics, 88, 263–286, 2009; Leipziger. The corporate responsibility code book. Greenleaf Publishing Limited, 2016; Leipziger. The corporate responsibility code book. Greenleaf Publishing Limited, 2016). Therefore, organizations have begun incorporating these concerns in their processes, adopting green management policies, and including green marketing strategies in order to remain competitive (Straughan & Roberts. Journal of Consumer Marketing, 16(6), 558–575, 1999; Rivera-Camino. European Journal of Marketing, 41, 1328–1358, 2007). From the marketing perspective, the importance of understanding green consumer behaviour in order to develop better segmentation and targeting strategies is highlighted. Green consumers are changing significantly. Consumers, although with some reluctance, are moving to greener products. The Mintel organization reported that the number of consumers buying green has tripled in recent years. Furthermore, it found that the number of consumers that never bought green products have decreased. These results show that widespread environmental awareness had an important role in purchasing behaviour, with more consumers considering the environmental impact of their buying decisions and looking for a greener alternative to their conventional purchasing options. The existing literature suggests that previous research regarding the green consumer profile has different perspectives. The first group of researchers attempted to characterize green consumer profile using sociodemographic variables such as age, gender, education, income and occupation. In turn, the second group of researchers used psychographic variables instead of sociodemographic ones (Mainieri, Barnett, Valdero, Unipan, & Oskamp. Journal of Social Psychology, 137(2), 189–204, 1997). This chapter aims to better explore the importance of green consumer segmentation and its implications from a management point of view. More specifically, the aim is to analyze which variables better characterize green consumers (sociodemographic and psychographic). At the end, a theoretical framework is proposed to enable and support organizations to better understand green consumer profile. It also enables managers and marketers to target and develop better marketing strategies for these segments.
Carolina Afonso, Diana Gavilan, Jesús García-Madariaga, Helena Martins Gonçalves

Chapter 10. How Strong Might Be a Carbon Tax on Electricity Consumption to Reach Spanish H2020 Targets?

This chapter evaluates the cumulative impact (2014–2020) that a tax on electricity consumption would have on it consumption in Spain. Changes in electricity consumption are caused by increasing purchasing prices due to tax. Impact on revenues and CO2 emissions are also assessed through a model price. Tax reform is inspired on final report presented by a Group of Experts commissioned by the Government of Spain in 2014. The evaluation has been performed by considering two scenarios, without (Scenario 1) and with tax recycling between the new tax and employer-paid Social Security benefits or with tax using a price stability tool (Scenario 2). Data comes from the Social Accounting Matrix at purchase prices for Spain in 2006 (SAMESP06). Right rates of a carbon tax designed on electricity consumption would range between 6.24% and 5.52% to reach the total target.
J. M. Cansino, M. A. Cardenete, M. Ordóñez, R. Román


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