Sustainability innovations and firm competitiveness: A review

Abstract

The purpose of this article is to map out the currently available research concerning the relationship between sustainability innovations and competitiveness and to identify the contextual factors that mediate and moderate this relationship. The present study is a systematic literature review that includes 100 relevant peer-reviewed publications. We examine the studies’ methodology, industry, sustainability innovation terms, sustainability innovation variables, competitiveness variables, and findings to investigate if, and under what circumstances, there is a positive relationship between sustainability innovations and firm competitiveness. The study concludes that a vast majority of studies found positive relationships. Hence, the findings support the revisionist view that sustainability innovations can create win-win situations for a firm. However, the relationship is complex, and this study contributes with an overview of national-, market-, industry-, and firm-level factors that have a moderating or mediating effect on the relationship.