Business

Risk and Economic Feasibility Analysis of Sustainable and Biodegradable Innovations

Abstract

The increasing environmental concerns on plastic waste and non-biodegradable materials have increased pressure in the need to innovate sustainable and biodegradable products in all industries. Nevertheless, such innovations are usually associated with uncertainties in terms of financial investment, adoption of technology, and acceptance of the innovation in the market. This research will assess economic viability and risk issue that can affect the use of sustainable and biodegradable innovations by incorporating a Partial Least Squares Structural Equation Modeling (PLS-SEM) method. Quantitative research design was used based on a structured questionnaire that has been conducted among professionals in the industry, environmental researches and sustainability managers engaged in developing and implementing biodegradable products. A total of 550 respondents gave a total of 441 valid respondents that were used to analyze the data. SmartPLS software was used to examine the collected data in terms of measurement and structural models. The findings give empirical data on the correlation between the perceived risks and economic viability of sustainable innovations. The results indicate that technological preparedness and the regulation support are key factors to the increased market acceptance, which eventually increases economic viability, whereas the investment risk has an adverse impact on adoption decisions. The work will add to the existing body of research on sustainable innovation management and will have practical implications to policymakers and organizations that aim to advance the use of environmentally responsible technologies and, at the same time, be economically viable.

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