Origins of green innovations: the differences between proactive and reactive green innovations

TLDR

The study investigates the distinct origins of proactive versus reactive green innovations. Using a hybrid qualitative–quantitative design, the authors first construct a framework through case study and grounded theory on AU Optronics Corp., then validate it with a questionnaire survey. Results show that reactive green innovation is driven by both internal factors (environmental leadership, culture, capability) and external factors (regulations, investor/client environmentalism), while proactive green innovation relies only on internal factors, suggesting firms should prioritize internal capabilities.

Abstract

Purpose The purpose of this paper is to explore the origins of the two types of green innovations: proactive and reactive green innovations. Design/methodology/approach In order to satisfy the essence of the triangulation in methodology, this study applies a hybrid research method which includes both qualitative and quantitative research to discuss the origins of green innovations based on the two following stages. First, the study uses inductive logic from the perspectives of case study research and grounded theory to build the research framework and selects AU Optronics Corp. (AUO), the worldwide top three manufacturer in the TFT‐LCD industry, as the research object. Second, the study utilizes a questionnaire survey method to test the research framework proposed in the first stage. Findings This study divides green innovations into two types: proactive and reactive green innovations, because their origins are different. The results show that both of the internal origins – environmental leadership, environmental culture, and environmental capability and the external origins – the environmental regulations and the environmentalism of investors and clients – can generate reactive green innovation. However, only the internal origins can facilitate proactive green innovation. This study suggests that companies should invest their resources in cultivating the internal origins rather than the external origins. Originality/value The paper provides insights into what origins cause proactive and reactive green innovations by means of hybrid research method – qualitative and quantitative research – in Taiwan. This study builds up a theory about the origins of the two types of green innovations.