Behind The Eco Innovation Efforts: A Review of Dynamic Capabilities Theory

In the new millennium, scholars and business personal are actively searching a secret recipe on how to support the ability of current generations to meet their needs without compromising the ability of future generations to meet theirs. As many research discovered that eco innovation echoes to the sustainability development, research opportunity knocked the door for knowledge discovery as limited information reveals under this domain. Therefore, the purpose of this paper is to shed light on the role of eco innovation efforts towards sustainable development particularly in the automotive industries. There are five types of eco innovation that highly discussed in the literature namely eco product, process, marketing, organization and institutional. However, the technical eco innovation in forms of product and process relatively embrace by automotive industries as this industry received global forces in order to reduce pollution and waste creation. Furthermore, many scholars acknowledge that the automotive industries behave as a driver to improve sustainability performance. Secondly, this paper will discuss the secret weapons behind the eco innovation efforts underlines product and process innovation by reviewing dynamic capabilities theory. Last but not least, at the end of this paper, new paradigm for new research opportunities in automotive industries will be discussed.