Does Eco-Innovation Reinforce Better Waste Management? The Role of Industry Sensitivity and Environmental Policy Frameworks

Environmental sustainability is a critical global concern, and waste generation poses a major threat to ecological balance. We investigate eco-innovation’s role in enhancing waste management practices via the natural-resource-based view and dynamic capability perspective. Using a robust dataset of publicly listed firms from 42 countries, we find a positive and significant relationship between eco-innovation and waste management performance; this is especially pronounced in environmentally sensitive industries and firms with formal waste reduction policies. By integrating two strategic management frameworks, this study deepens theoretical understanding while extending empirical evidence across a broad geographical and temporal scope. Our findings highlight the value of eco-innovation as a dynamic capability that supports firms in more effectively addressing environmental challenges. There are key implications for managers, policymakers, and scholars, given eco-innovation’s key role in supporting sustainable development and several United Nations Sustainable Development Goals.