Scaling up sustainable innovation: Stakeholder ties, eco‐product innovation, and new product performance

Abstract Deriving insights from the stakeholder theory, this article investigates the impact of industry stakeholders on product innovation through eco‐innovation. It further examines the moderating role of environmental R&D expenditure on this relationship. Using data from 212 firms, the results from this article reveal that (1) both intra and extra‐stakeholder ties predict eco‐innovation, (2) eco‐innovation mediates the relationship between industry stakeholder ties and new product performance, and (3) environmental R&D expenditure has a positive moderating effect on the linkage between intra and extra‐industry stakeholder ties and new product performance through eco‐innovation. These findings contribute to our understanding of the role of industry stakeholders in the context of emerging markets by being a driver of new product outcomes. Implications for theory and practice are discussed.