Impact of technology-enabled product eco-innovation: Empirical evidence from the Chinese manufacturing industry

The advent of global environmental problems has been exacerbated by rapid industrialization; however, these challenges can be addressed through business model innovation enabled by technological advancements. While numerous academic works have investigated the results of technology-enabled business model innovations in a variety of environmental sustainability contexts, the application of technological improvements to product eco-innovation (PEI) has received comparatively less scrutiny. To bridge this research gap, our study aims to examine the impact of technology-enabled PEI as well as the boundary conditions. Grounded in the resource-based view, we developed a conceptual framework, which we investigated via hierarchical regression analysis using online survey data from 280 Chinese manufacturing firms. The results reveal that technology-enabled PEI has a positive impact on both economic and environmental performance. This positive impact is amplified by a high level of firm IT capability and high fiscal policy incentives. This study provides a deeper understanding of the performance ramifications of technology-enabled PEI as well as managerial insights for promoting economic and environmental sustainability in the manufacturing industry.