The Impact of Technological Green New Product Introductions on Firm Profitability

Mark Palmer, Yann Truong

Research output: Contribution to journalArticle

22 Citations (Scopus)
242 Downloads (Pure)

Abstract

With changing customer preferences and volatile economic-technological environments, firms have accelerated the rate of new product introductions (NPIs) to sustain corporate growth. However, NPIs have adverse impacts on the environment. But what do we know about the impact of technological green NPIs on firm profitability? Can technological green products help limit or off-set the negative impact of NPIs on the environment? Accelerating the number of NPIs imposes additional costs for firms as well as environmental costs, particularly with greater resource depletion and waste generation. A well-supported solution to reconcile the economic-environmental preservation imperative is to create incentives for firms to use green technologies to offset the negative impact of new products on the environment. Using data on 1020 technological green products which were introduced between 2007 and 2012 by 79 global firms, we investigate whether there are any win–win situations in terms of financial advantages for firms, while reducing the adverse impacts of NPIs on the environment. The results show that the relationship between technological green NPIs and firm profitability is positive. The findings point to the financial incentives for firms to leverage on green technologies to limit the environmental impact of NPIs.
Original languageEnglish
Pages (from-to)86–93
Number of pages8
JournalEcological Economics
Volume136
Early online date23 Feb 2017
DOIs
Publication statusPublished - 01 Jun 2017

Fingerprint Dive into the research topics of 'The Impact of Technological Green New Product Introductions on Firm Profitability'. Together they form a unique fingerprint.

Cite this