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Transferability of Green Innovation Practices to the Customer

Zubovskiy, Dmitry (2015) Transferability of Green Innovation Practices to the Customer.

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Abstract:Over the last decades, environmental protection has become a crucial part of peoples´ understanding of a sustainable society. Growing demand for eco-friendly products and services along with rising political intent are more and more affecting the way different industries and organizations are handling environmental issues. In recent years, the topic of green innovation has drawn a lot of attention in the literature as new emerging field of interest in response to growing environmental concerns. However, while potential deriving benefits (from green innovation), challenges and the influence on organizational performance have been extensively investigated, the literature does not provide any guidance for firms on how to transfer those benefits to their customers. This study aims to investigate this transfer process under consideration of a firm´s effort towards green innovation practices and the customer´s perceptions of potentially deriving benefits expressed by the concept of customer value. The analysis reveals that the positive externalities on the environment resulting from the use of GI practices do not necessarily reflect the dimension that will have the highest positive effect on customer value and therefore, successful transformation. In fact, it turns out that customers place much higher value on other elements like accessibility and increased product portfolios. Besides, laws and regulations along with associated green innovation practices can result in major performance improvements and other unforeseen positive effects for the company that could be transferred to the customer. The study shows that firms can exercise a certain influence on the transferability of green innovation practices to the customer by transforming deriving benefits into elements that will be perceived and valued by the customers.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67357
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