Toward environmental innovation in the cement industry: A multiple-case study of incumbents and new entrants

In this study, we explore the drivers of and barriers to environmental innovation for new entrants and incumbents in the cement industry. The cement industry produces large amounts of carbon dioxide (CO2) emissions every year, and therefore, implementing environmental innovations in the industry is important. The study was conducted as a multiple-case study of seven companies; four are new entrants, and three are incumbents in the cement industry. We found that incumbents implement environmental process innovations, as these firms are driven by cost-efficiency incentives to serve price-sensitive customers that prioritize standard products with competitive prices. Incumbents’ efforts in environmental product innovations are hindered by economic feasibility and constraints of production facilities especially when compared to ordinary Portland cement (OPC) production. In turn, new entrants implement environmental product innovations, as these firms are driven by internal values and a mission involving environmentally friendly products. To attain better environmental performance, new entrants create environmental product innovations for niche markets and applications. New policies that stimulate customer demand for new entrants and incumbents could accelerate the change to lower emissions in cement production.