The Growing Business of Mitigating Ecological Footprints

41 Pages Posted: 22 Apr 2012

See all articles by Aurélia Durand

Aurélia Durand

HEC Montreal; Center for Interuniversity Research and Analysis on Organization (CIRANO)

Bernard Sinclair-Desgagne

SKEMA Business School - Sophia Antipolis Campus

Date Written: April 20, 2012

Abstract

Over the past decades, polluting firms and government bodies have come to rely increasingly on specialized suppliers for the necessary goods, technologies and services that would alleviate their environmental footprint. These suppliers now form a large and growing industry, the so-called ‘eco-industry’, which currently matches the aerospace and pharmaceutical sectors in size. So far, the interface between cleantech sellers and buyers has been mostly overlooked in the academic literature. As a result, its underlying dynamics and potential for value-creation – and a better environmental performance – are still poorly understood. This conceptual paper first offers an overview of the eco-industry’s history and outlines its scope, recent development and growth potential. It then builds upon current knowledge in innovation economics and relationship marketing to analyze the evolving interactions between polluters and their cleantech suppliers towards value co-creation. Current barriers to this trend are next highlighted, the implications for public policy and business strategy are discussed, and some future research avenues are finally outlined.

Keywords: Environmental goods and services industry, Smithian innovation, relational exchange, service logic, value co-creation

Suggested Citation

Durand, Aurélia and Sinclair-Desgagne, Bernard, The Growing Business of Mitigating Ecological Footprints (April 20, 2012). CIRANO - Scientific Publications 2012s-07. Available at SSRN: https://ssrn.com/abstract=2043092 or http://dx.doi.org/10.2139/ssrn.2043092

Aurélia Durand

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

Bernard Sinclair-Desgagne (Contact Author)

SKEMA Business School - Sophia Antipolis Campus ( email )

60 rue Dostoïevski
Sophia Antipolis, 06902
France

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