Success Factors for Environmentally Sustainable Product Innovation: A Meta‐Analysis

Abstract

Academic Summary Growing environmental challenges and sustainability imperatives have intensified firms' need to pursue environmentally sustainable product innovation (ESPI), leading to a surge of research examining the factors that determine its success. This study presents a meta‐analysis of 182 independent samples and contributes to our understanding of ESPI in three major ways. First, by adopting the open systems theory, this meta‐analysis presents a holistic, integrated examination of the driving factors of ESPI and assesses their relative importance, marking a significant leap in environmental sustainability and innovation management research. Second, by comparing these findings with established meta‐analyses of product innovation, it reveals whether ESPI necessitates a novel theoretical paradigm or can be contextualized within established innovation‐management frameworks. Although some of ESPI's success factors are common to conventional product innovation, this study highlights factors that are specific to ESPI, which suggests that the development of ESPI should be treated differently from that of conventional product innovation. Third, the analysis shows that ESPI's drivers are contingent upon the institutional context; national culture and level of economic development significantly moderate their effects. Collectively, these findings advance theory integration in sustainability and innovation management and offer actionable insights for managers and policymakers seeking to foster effective, context‐sensitive ESPI strategies. Managerial Summary This study identifies several key actions managers can take to strengthen environmental sustainability. Firstly, managers must understand that environmentally sustainable product innovation is fundamentally different from conventional product innovation. Relying on existing innovation systems is insufficient; firms must adapt systems and processes to address green‐specific demands. Secondly, developing a strong green market orientation is essential. Firms should monitor sustainability trends, anticipate shifts in eco‐conscious consumer preferences, and engage customers early to co‐create and validate green solutions. Thirdly, managers should embed green entrepreneurial orientation by encouraging employees to identify, evaluate, and act on sustainability‐driven opportunities that create green value. Fourthly, building and integrating organizational capabilities, including technological, HRM, cross‐functional, and knowledge‐integration systems, is vital for agility and innovation effectiveness. Fifthly, fostering green culture and transformational leadership ensures employees are motivated and rewarded for sustainability‐driven behaviors. Sixthly, leveraging external stakeholders wisely through collaboration with suppliers, customers, and NGOs enhances legitimacy and knowledge sharing while maintaining strong internal capabilities. Seventhly, managers should build and communicate a credible reputation through visible sustainability commitments and partnerships. Finally, adapting to institutional context is critical: strategies should align with national culture and economic development, emphasizing organizational learning in developing economies and advanced green technologies in developed contexts.