ABSTRACT
The first category of factors at the co-institutionalization level is the category of market and society. Market demand is a crucial factor in the process of industrial change. When market demands change, this can cause complete new businesses to develop and new industries to arise. When public opinion changes and new issues are put on the societal agenda, this can be the start of fundamental industrial change. Industry has to react and adapt to what happens in its business environment, and since most businesses exist and survive because of sufficient market demand and societal support, they need to keep up with changes in markets and societies. A key characteristic of market and societal change with respect to eco-innovation and sustainability is that these aspects are increasingly becoming business-qualifying and business-winning factors. Sustainability is becoming a driver behind new business and behind the rejuvenation of traditional industry. Market and societal influence on business performance thus can be significant. Business's classic economic approach is to meet the explicit or latent needs of customers, from the need for food, water, clothes, shelter and transport to that for entertainment and personal development. In the past, this approach has resulted in mass industrialization and in the mass production and consumption of food, drinks, clothing, dwellings, cars, aircrafts, buses, bikes and trains, jewelry, fashion, art, motion pictures and media. A recent trend is that market and societal awareness of sustainability has become integrated into this classical approach. It adds a fundamental aspect to traditional business and forces business to start thinking about how to serve all the existing needs of consumers and make a profit, while simultaneously addressing sustainability issues. Suddenly firms have to ask themselves questions about the eco-effectiveness and –efficiency of their production processes, products and supply chains. Nevertheless, just asking these questions will not be sufficient. Firms are also required to come up with answers and solutions. Changing forces and demands in market and society stimulate organizations at the co-innovation level to move their perhaps rather tiny eco- and sustainably innovative businesses toward mass production and consumption. Market and society are the first element at the co-institutionalization level of the model of eco-innovation and sustainability management (see Figure 9.1).
