Factors that drive and sustain eco-innovation in the construction industry: The case of Hong Kong

Abstract

While determination of driving forces for eco-innovation has been evaluated largely in the literature, questions about its implementation in the construction industry and the factors that can predict its future likelihood of adoption remain unanswered. The current study aims to determine the factors that influence adoption of eco-innovative practices in the construction industry in context of Hong Kong. The study develops a conceptual framework based on institutional theory, strategic choice theory and resource-based view and tests this framework by using data collected from 140 construction-based firms in Hong Kong, providing a response rate of 43%. Hierarchical regression analysis and linear regression analysis are used for testing the various relationships. The results revealed that regulatory instruments, managerial consent and organizational measures play an important role in influencing the firms to be eco-innovative. However, in case of determining future likelihood of adoption, although regulatory instruments and managerial consent do influence, firms that are already equipped with eco-innovative practices are most likely to adopt in future as well. Therefore, the study demonstrates a strong mediating role of eco-innovative practices on likelihood of adoption. Eco-innovation is also positively related to financial profitability. These findings support the Porter hypothesis and demonstrates path dependency for innovation breeds innovation. Considering that the findings are derived from a particular sector, it provides meaningful insights for the practitioners involved in real-time implementation.