Abstract
Using the behavioural theory of the firm as its basis, this paper investigates if the sustainable product innovation of publicly listed firms in the U.S. changes in comparison to that of other firms in the same industry. Using a relatively large dataset and conducting regression analysis, this study finds support for this hypothesis. More specifically, this study finds that SPI at the industry level positively predicts the social and environmental innovations of a firm’s products. The main contribution of this paper is to the literature on the drivers of sustainable product innovation (SPI).