chapter  2
Literature review
Pages 1

Since the greenhouse effect is worsening and the resource is scarce, sustainable development becomes a considerable concern in business practice (Despeisse et al. 2012). There are several drivers for enterprises to meet the need of sustainable development. The first and foremost reason for organizations is in respect to external regulatory and policy pressures which limit environment index such as carbon and toxic emission and water or air pollution level (Beske 2012; Hitchcock 2012). For example, some of the earlier initiatives are the European Union (EU) Emission Trading Scheme (Hitchcock 2012). Moreover, except the official policies and regulations, the pressure from some communities and non-governmental organizations also serves as an important force in sustainable development (Beske 2012). According to Porter (1996), in order to employ the differentiation strategy to gain competitiveness over its competitors, an enterprise has to focus on the Research and Development (R&D) with innovations to win the market share. The most important reason for such high attention on environmental factors is that they are regarded by an increasing number of companies as great opportunities to drive business efficiencies, stimulate innovation, reduce costs, improve brand positioning and enhance business communications. Also, companies may further strengthen their competency and add value to their business with those environmental benefits (O’Rafferty 2008). The use of processes like Design-for-Environment (DfE) helps to reduce the environmental impact of products from the initial stage of conceptual design (Kurk & Eagan 2008). The ideal situation being that products will be made, distributed and used without harming the environment as well as being recyclable and reusable. In terms of this eco-product innovation, designers will integrate environmental considerations at the very first step of product development which can contribute to the ideal goals of environmental friendly product (Kurk & Eagan 2008; González-García et al. 2012).