Figure 3.
An integrative framework of environmental innovation Refer to the image caption for details.The framework is organised as a top-to-bottom flow diagram showing causal relationships across four main layers. At the top, ownership dimensions are grouped into family, state, entrepreneurs or venture capital, managerial, and institutional ownership, with examples such as multigeneration family firms, state subsidies, eco entrepreneurs, chief executive roles, and pension or insurance investors. Alongside this layer, environmental policy factors include sustainable development, environmental dynamism, stakeholder engagement, and environmental sanctions. Arrows lead downward to a governance layer combining corporate governance, corporate social responsibility, and corporate sustainability, which includes elements such as environmental management, social entrepreneurship, ownership concentration, boards, inclusive innovation, shared value, social capital, and sustainable development goals. The next layer focuses on strategy, capabilities, and resources, covering business model innovation for sustainability, sustainable innovation capabilities such as circular economy and eco design, and environmental innovation technologies including cleaner production, green technology, renewable energy, and electric vehicles. The final layer presents environmental innovation outcomes at three levels: macro level institutions, showing spillovers, cultural diffusion, regulatory impacts, and standardisation; meso level firms, showing operational and organisational outcomes such as new product development, energy efficiency, emissions reduction, financial sustainability, patents, and firm value; and micro level individuals, showing attitudinal and behavioural outcomes such as managerial attitudes, skills, creativity, risk taking, ethics, and innovation behaviour.

An integrative framework of environmental innovation

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