Stakeholder engagement mechanisms and their contribution to eco‐innovation: Differentiated effects of communication and cooperation

Abstract

This study analyses the effect of communication and cooperation—as engagement mechanisms of stakeholder's integration capacity—on eco‐innovation intensity in firms. With this purpose, a mediation model is conducted, controlling by activity sector and firm's size. Results show that communication, as the first stakeholder engagement mechanism, has a positive effect on eco‐innovation strategy and that communication is a step that comes before cooperation. Results show that cooperation with stakeholders also supports eco‐innovation strategy development. It is therefore concluded that, when firms reach the greatest degree of stakeholder integration, through cooperation mechanisms, eco‐innovation strategy is greater than when there is only communication. This study provides three types of contribution to the literature: First, the effects of two types of stakeholder engagement mechanisms, communication, and cooperation, on firm's eco‐innovation strategy are separately analysed, as the interconnection between them. Second, the study proposes a novel way of measuring eco‐innovation that enables us to consider different degrees of eco‐innovative intensity based on a capital model that includes the accumulation of tangible and intangible assets derived from activities recently adopted by firms to reduce environmental impact. Third, this study provides empirical evidence to previous literature, generally case study‐based, of the effect that the stakeholder integration process has on eco‐innovation, through communication and cooperation mechanisms.