Page 251 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 251
Eco-innovation models 251
Organizational eco-innovation
In the organizational eco-innovation model, the influence of various de-
terminants on organizational eco-innovation and the influence of organ-
izational eco-innovation on its outcomes were analyzed. Eco-innovation
determinants were measured by six elements: the command-and-con-
trol instrument, the economic incentive instrument, managerial envi-
ronmental concern, customer demand, expected benefits and competi-
tive pressure. Eco-innovation outcomes were measured by five elements:
company growth and company profitability (objective measures obtained
from the GVIN database), economic benefits, competitive benefits and
internationalization.
Construct validity of organizational eco-innovation model
All measurement items and Cronbach’s alpha values are reported in Ta-
ble 86. Content validity for the survey instrument is supported by the
literature, in-depth interviews with environmental managers and a pilot
test. A Confirmatory Factor Analysis (CFA) model is estimated to assess
the construct validity. In the model, each item is linked to its correspond-
ing construct with freely estimated covariance. The model fit indexes are
as follows: Chi-square = 1600.916; df = 923; NFI = 0.819; NNFI = 0.902;
CFI = 0.913; RMSEA = 0.063; SRMR = 0.060, suggesting that the meas-
urement model is acceptable. In addition, the Cronbach’s alpha is 0.946,
while the reliability coefficient RHO is 0.981.
From Table 86, we can see that all factor loadings are greater than 0.50
and the p-values are significant at the 0.05 level, except for the item per-
taining to the company growth (“Net sales - growth through 2 business
years”), and convergent validity is ensured (Fornell and Larcker 1981). In
addition, the composite reliability of all constructs (except for the con-
struct company growth) is greater than 0.70, indicating acceptable reli-
ability (Hair et al. 2009). Additionally, the square root of average vari-
ance extracted (AVE) for each construct is greater than 0.50, except for
the construct company growth, for which has not been calculated (in-
stead, the correlation between the two items pertaining to the construct
is given).
Organizational eco-innovation
In the organizational eco-innovation model, the influence of various de-
terminants on organizational eco-innovation and the influence of organ-
izational eco-innovation on its outcomes were analyzed. Eco-innovation
determinants were measured by six elements: the command-and-con-
trol instrument, the economic incentive instrument, managerial envi-
ronmental concern, customer demand, expected benefits and competi-
tive pressure. Eco-innovation outcomes were measured by five elements:
company growth and company profitability (objective measures obtained
from the GVIN database), economic benefits, competitive benefits and
internationalization.
Construct validity of organizational eco-innovation model
All measurement items and Cronbach’s alpha values are reported in Ta-
ble 86. Content validity for the survey instrument is supported by the
literature, in-depth interviews with environmental managers and a pilot
test. A Confirmatory Factor Analysis (CFA) model is estimated to assess
the construct validity. In the model, each item is linked to its correspond-
ing construct with freely estimated covariance. The model fit indexes are
as follows: Chi-square = 1600.916; df = 923; NFI = 0.819; NNFI = 0.902;
CFI = 0.913; RMSEA = 0.063; SRMR = 0.060, suggesting that the meas-
urement model is acceptable. In addition, the Cronbach’s alpha is 0.946,
while the reliability coefficient RHO is 0.981.
From Table 86, we can see that all factor loadings are greater than 0.50
and the p-values are significant at the 0.05 level, except for the item per-
taining to the company growth (“Net sales - growth through 2 business
years”), and convergent validity is ensured (Fornell and Larcker 1981). In
addition, the composite reliability of all constructs (except for the con-
struct company growth) is greater than 0.70, indicating acceptable reli-
ability (Hair et al. 2009). Additionally, the square root of average vari-
ance extracted (AVE) for each construct is greater than 0.50, except for
the construct company growth, for which has not been calculated (in-
stead, the correlation between the two items pertaining to the construct
is given).
