The present research paper focused on the phenomenon of innovation as a key solution for business success as it relates to corporate environmental responsibility (CER). The ultimate aim of CER is to prevent and even eliminate, if possible, the harmful impact of business performance on the environment. Every modern company should adhere to the obligations of CER since environmental pollution is a serious hazard that endangers future existence of humankind. For example, it is essential to implement strategies that can contribute to air and water protection. Ecological innovation emerged on the grounds of such urgent needs of environment. Eco-innovation strives to make a transition from business with harmful effects to one of the accountability. Therefore, the present study aimed to review relevant, reliable and up-to-date sources dealing with eco-based innovations in the context of CER. A qualitative research is selected so as to collect sufficient amount of detailed credible data on the issue of concern. The given paper relied on a secondary research encompassing literature review and relevant case studies and a survey as the primary research. Based on the outcomes, several innovations were identified and presented to the target audience.
Innovation is regarded as a core driver of the development and success of any business. The given term derives from the Latin word innovates, which means “to renew, to change, to improve” (Mróz-Gorgoń, 2013, p. 704) [
Innovative technologies must be safe, justified and constructive in order to become a valuable strategic tool for a company. Along with this, the value for society and accountability for the corporate performance has become a topical issue in the modern business world. The standardized kinds of innovation phenomenon include organizational innovation, technological innovation, product innovation, and process innovation. Diverse novice types of innovation have emerged nowadays, reflecting the aforementioned stance of harm to the environment. Eco-innovation and social innovation are among them. According to the report by the Organization for Economic Co-operation and Development (OECD), eco-innovation is defined as “innovation that reflects the concept’s explicit emphasis on a reduction of environmental impact, no matter whether or not that effect is intended” (OECD, 2009, p. 13) [
This issue has become urgent today as far as the previous motive behind innovation was almost exclusively for financial gain without taking into account potential or actual harm to the environment or human resources involved in the process. Therefore, while there is nothing objectively wrong about developing innovative technologies as a means of improving the financial standing of a company, another main driver behind innovation should gear towards protecting the environment and indeed humanity. The present research aims to align eco-innovative approaches and efficiency of modern business.
Despite the fact that the phenomenon of eco-innovation is presented and advocated widely in the contemporary business environment, there are still many organizations and particular businesses that focus only on the bottom line even when it causes harm to society and environment. As a direct result of such attitudes, a concept of corporate social responsibility (hereinafter, CSR) and, subsequently, a concept of corporate environmental responsibility (hereinafter, CER) were developed and introduced. According to the European Commission, CSR means responsibility each enterprise has for its influence on society and can be achieved by means of “integrating social, environmental, ethical, consumer, and human rights concerns into their business strategy and operations” (European Commission, 2017) [
As a result, the concept of eco-innovation emerges, implying performance aimed at contributing to sustainable development. This, in turn, is designed to create novice products and services for the purposes of both enhancing business value and decreasing of serious environmental damage. The present study aims to review credible, relevant and up-to-date sources dealing with eco-based innovation phenomenon in the context of CER. Both primary and secondary research is employed for the given investigation. A qualitative research is used for the purpose of collecting itemized data sufficient for potentially effective, credible and justified inferences as well as constructive recommendations. The study relies on the literature review, a number of specific case studies, and survey outcomes. The findings based on such a solid background and significant research will provide several ideas on innovative technologies that can be used in practice.
The present research will require a significant number of sources to be reviewed and analyzed. The core concepts used in the given study include corporate social responsibility, corporate environmental responsibility, and eco-innovation.
The background on innovation and eco-innovation relies on the studies by Kotsemir and Abroskin (2013) [
The issue of natural resources is crucial in the given context. Destructive corporate activities and overall negligence of humankind in terms of use of the natural resources have led to limited availability of these resources, excessive level of environmental pollution and serious transformations in the nature (Schaefer, Goldman, Bartuska, Sutton-Grier, & Lubchenco, 2015) [
The potential of innovation is significant and diverse. Hence, it is employed in different spheres nowadays. Consequently, there are several core kinds of the concept of innovation, as classified by the OECD; namely, product innovation, marketing innovation, process innovation, and organizational innovation (Kotsemir & Abroskin, 2013) [
Nonetheless, such a classification does not suffice for the needs and priorities of modern society and the business world. Business performance acquires novice implications and values. To be more precise, business activity faces requirements and limitations related to its destructive impact on environment. Business activity often involves depleting important natural resources that are limited and nonrenewable. These resources are referred to as natural capital. Furthermore, nature is impacted by negligent attitude of business sector, and this negative influence results in evident damage, natural catastrophes and hazardous changes in natural processes. Hence, there is a need to adjust all the business processes to an eco-friendly mode and at the same time take responsibility for negative outcomes directly influenced by business activity. Based on such aspects, the notions of ecological innovation have emerged. The phenomenon of ecological innovation (hereinafter, eco-innovation) is a recently developed notion that deals with environmental protection and provision of efficiency of all the introduced innovative processes. The definition of this concept by Miedzinski, Doranova, Castel, Roman, and Charter (2013) [
Angelo, Jabbour, and Galina (2012) [
Eco-innovation is a major effort of mankind to implement sustainability as a trade-off between business needs and necessity to save natural capital (Jang, Park, Roh, & Han, 2015) [
It is also crucial to distinguish between disruptive and incremental types of eco-innovation. According to Miedzinski, Doranova, Castel, Roman, and Charter (2013) [
All the facts and challenges of eco-innovation discussed above lead to the conclusion that this process is complex and multi-dimensional. Rizos, Behrens, and Taranic (2015) [
Another approach for measuring eco-innovation efficiency is suggested by the Eco-Innovation Observatory (hereinafter, EIO). EIO (2012) [
The basic comprehension and definition of the concept of CSR was formed relying on the studies conducted by Karassin and Bar-Haim (2016) [
Definition and study of nature of the term of corporate environmental responsibility (hereinafter, CER) is based on numerous studies, namely, works by Shah (2011) [
Environmental consciousness is expected from every person, organization and business unit nowadays in order to prevent serious ramifications imposed by extensive environmental pollution (Duker & Olugunna, 2014) [
Karassin and Bar-Haim (2016) [
There are several cases that illustrate how ecological innovation can be employed as a constructive tool of CER in the current course of time. The cases are selected from those primarily conducted in developing countries, as it is relevant to the ultimate purpose of the given study.
1) Bangladesh
One of these examples is research on the issue of CER actualization and its potential efficiency in one of the low income countries, Bangladesh, conducted by Belal, Cooper, and Khan (2015) [
Brown (2013) [
2) Sweden and Denmark
Another relevant example encompasses process of eco-innovation in contemporary industrial water-service systems (Levidow, Lindgaard-Jorgensen, Nilsson, Skenhall, & Assimacopoulos, 2016) [
3) India
Another case addresses implementation of CER and its efficiency in India. This study was conducted by Chahoud, Emmerling, Kolb, Kubina, Repinski, and Schlager (2007) [
4) Ethiopia
Finally, researchers Asfaw, Botes and Mengesha (2017) [
Based on the present extensive literature review, a model that encompasses the main efficiency criteria was constructed. The framework of this model includes scalability, capacity, security, speed of installation, error handling and validation of the data. Each aspect will be addressed in the course of primary study.
The present study relies on both primary and secondary research. Secondary research involves review of credible, reliable and up-to-date sources that feature the core concepts of the research and relevant case studies in the area of interest. Primary research encompasses conducting survey and consequent analysis of the acquired responses. The results lead to the ability to identify several ideas of innovation eligible for further practical use or future, more specific exploration.
The given research adheres to the qualitative approach. The reason is that this approach aligns with the major aims of the given research, namely, to provide in-depth insight into the issue in question, to analyze it from different angles and to acquire as much details on the topic as possible. Itemized data and diversity of perspectives contribute to validity and overall potential of the acquired research outcomes (Kumar, 2008) [
The research question of the present study is as follows: what is the actual impact of eco-based innovation on enhancement of efficiency of CER? The focus of the secondary research will be narrowed down by means of several case studies representing the essential data needed for conclusions and further application of research results. The primary research will employ a survey. According to Fowler (2009) [
The given study is regarded as cross-sectional. Such a choice is predetermined by the need to observe and collect evidence for subsequent analysis without interventions or modifications of the evidential basis. According to Mann (2003) [
The survey consists of 12 questions. Both open-ended and close-ended questions are included in the survey so as to acquire accurate information on both current tendencies and in-depth insight of the studied phenomenon. The survey will be developed relying on major issues identified during the secondary research and the model of efficiency criteria. To be more precise, the respondents will be asked about dilemmas, challenges and main problematic aspects of eco-innovation in terms of CER. The surveys will be distributed online so as to provide the participants with convenience and a sufficient amount of time to complete it.
The present study involves a comparatively small percentage of the major target audience. To be more precise, the major target audience of the given investigation would be all the entrepreneurs in the world, whereas the given study is conducted in the People’s Republic of China and the chosen location is the city of Wuhan, Hubei Province (Central China). The potential audience for this study is invited to partake at three business conferences that are conducted regularly in local business centers. The researchers contacted the organizers of each event and asked for some time after the conferences to present the study mission, aim and offer an invitation to take part in the study. Seven organizers were contacted and three gave consent. The invitation encompassed brief information on the background of the study, identified gaps and highlighted necessity and topicality of the presented study as well as its ultimate purpose, study design and terms of participation. The audience was guaranteed confidentiality of personal data, anonymity of the responses, principle of informed consent, use of the responses in scientific purposes only, and free access to the results of the study. All of those who wanted to participate provided their e-mail addresses.
The overall quantity of the respondents necessary for the study was 100. A back-up group of 20 more people was formed in case some of the respondents declined to partake, failed to complete the survey or provided incomplete responses. Each individual received a welcome e-mail letter with basic terms, guarantees and form of informed consent. Along with this, each person was assigned to a group. The date the survey was to be distributed and time for its completion (1 week) was also mentioned in the letter. As soon as 100 of the respondents from the main group provided their consent and confirmed participation, the survey questions were approved, and the surveys were returned by the due date. Only two respondents failed to provide their feedback, so it took 10 additional days to contact the representative of the back-up group and receive their responses.
Once 100 responses were collected, each aspect was analyzed and arranged into a set of inferences. Consequently, the outcomes of the primary and secondary research were compared and aligned or contrasted accordingly. Finally, a concise and comprehensive report was developed, revealing core findings, discrepancies and challenges of the issue in question. The most valuable empirical contribution of the study was a set of innovative ideas designed based on the given research course.
The limitations of the study include a small sample size of participants, biases that might be provoked by the inattentiveness of the respondents or through misunderstanding of the questions, and probability of errors in interpretation of open-ended questions. The small number of participants is validated by intention to acquire itemized data and present an in-depth study of the small-sized sample. The respondents will be asked in the letter attached to the e-mail with the survey to be honest and attentive while completing the survey. Furthermore, in case some biased meanings are detected, clarifications can be made.
The present study will adhere to the following ethical considerations: 1) principle of informed consent. The participants will receive the form of informed consent and will be asked to fill it in as a sign of their willingness to partake in the present study; 2) principle of anonymity. The responses will be anonymous. 3) principle of confidentiality of personal data such as e-mail addresses or first names and surnames; 4) guarantee of the use of responses for scientific purposes of the given study only; 5) and free access to the results of the study once it is finished and presented officially.
The results acquired via online survey were structured in accordance with the core efficiency criteria presented in the model.
All the participants of the study confirmed that proper implementation of eco-innovative technologies impacted efficiency of CER positively. 78% of the respondents agreed that eco-innovation always requires making crucial changes, but at the same time leads to better performance outcomes and higher quality of the final product or service level. Some respondents noted in their additional comments to the survey, that CER was impossible without eco-innovation and that awareness of urgent necessity to implement CER in all countries by all companies is a key to the future with resources available and natural conditions favorable for all living things on Earth. Seven respondents claimed that CER is being implemented too slowly and such a pace does not suffice for timely changes needed to save the natural capital. One of the participants posited that the course of implementation of eco-innovative technologies endangered the survival of many companies as far as it required much time, efforts, alterations and expenses, and, as a result, the company could face potential bankrupt since revenues could decrease or investors could pull out. This is an important aspect that should be studied further in the future studies.
The results on the criteria of scalability were as follows: 76% of the respondents stated that eco-innovation contributed to scalability, but only in the long run. Some respondents highlighted that their business needed around two to three years to cross the line of proper scalability after the introduction of eco-innovation technologies (34%), whereas others stated that qualitative implementation of eco-innovation led to positive results in terms of scalability of the business within a year (28%). The rest of the respondents stated they had no experience with eco-innovation aligned with scalability issues.
Capacity criterion acquired the following research outcomes: the prevailing majority of respondents (58%) stated that the primary threat to capacity of the business was eco-innovations; some respondents claimed it was of utmost importance to start eco-innovative practices only when the program aimed at CER provided transparent vision of adjusted performance that did not affect capacity, whereas others claimed it was crucial to start eco-innovative practices as soon as possible since it was hard to construct an impeccable scheme for every type of business without affecting any of the currently studied criteria of efficiency. One of the respondents expressed in the section for additional comments that capacity should be a main concern in the long run, i.e., the capacity decreased in the course of CER actualization is a logical consequence of serious transformations, and should be endured for the sake of the ultimate purpose—better capacity in the future.
Security issue received most of the attention of respondents in the section of additional comments. The following aspects were addressed: according to 98% of the respondents, security was considered to be the major concern in eco-innovative practices; 44% of the participants believed that security was a key measure in constructive eco-innovation; 28% of the respondents claimed they improved security in their businesses via introduction of eco-innovation, and 3% of them stated innovative technologies were hazardous to their businesses on the initial stage of implementation. 14% of the participants also highlighted that initial plan of implementation of eco-innovative technologies should include the predictions for potential threats to security and solutions or preventive measures. Furthermore, 7% of the respondents believed that eco-innovation could become a hazard to overall security measures only in cases in which it was implemented or conducted improperly. Finally, 78% of the participants also mentioned that security was a consequence of constructive and qualitative eco-innovation and adequately functioning business.
Speed of installation was the next aspect studied in the given research. 77% of the respondents stated that implementation of eco-innovation was proceeding too slowly. Some respondents commented that they had the following problems because of the low speed of installation: loss of investors because of incremental rates of decreased revenues (11%); loss of partners because of failed deadlines and terms of their partnership (18%); reduced sales (12%); and lower rates in performance in the annual report (6%). On the other hand, three respondents mentioned that the slow speed of installation could be improved through higher expenses. One of the participants also added that speed of installation in his experience directly depended on the competence of the team. Finally, the need for constructive, maximally detailed plan of installation was mentioned by 28 respondents as a core basis of timely implementation.
Error handling was the most controversially perceived aspect in the context of the given research. To be more precise, 52% of the respondents believed that it would be impossible to predict and prevent all the crucial errors in the process of implementation of eco-innovative technologies. Furthermore, the main factors contributing to effective error handling were identified as: timely detection of error, highly competent personnel, plan for prompt solution of the errors and their consequent prevention, strong security system, and maximal alignment of business capacity with requirements of eco-innovative technologies. Finally, proper error handling was considered as a significant stage of development of the company in the process of eco-innovation implementation.
Data validation is a final criterion of efficiency used for evaluating positive contribution of eco-innovation to CER in the modern business world. According to the survey completed by those 100 participants, 79% claimed that data validation was not a problem provided all the previous stages of eco-innovation implementation were conducted properly and timely. Still, the respondents were asked to list the main challenges and drawbacks they faced in the context of data validation, and the most common responses were the following: omission or confusion of data that led to data corruption and security vulnerability; insufficient amount of data necessary for valid outcomes; and improper choice of validation method. A plurality (46%) highlighted omission or confusion of data as a major reason of unjustified validation results. 23% of the respondents claimed that such unjustified and corrupted results led to serious problems in overall business performance consequently.
The course of research confirmed some of the inferences and statements acquired in the process of secondary review as well as detected several novice insights in the field of concern. Hence, a list of core findings was formed and will be discussed in this section.
First, the major concern for all the steps in the course of implementation of eco-innovations should be security. Provided every action is secure, it automatically becomes effective in terms of CER. Security should be ensured by means of prior planning; developing alternatives, preventive measures and solutions; positioning security as an ultimate value in all the actions and decisions; and timely response to errors detected. Security should be preserved beyond just in the initial stage of implementation since each stage of implementation will present novice challenges and risks. Hence, regular evaluation of security level is recommended for consistent course of implementation of eco-innovations.
Second, impact of eco-innovations should contribute to both CER actualization in the company and capacity of the business venture. To be more precise, business owners should position the value of capacity as a long-term target, and understand that any type of adjustment or innovation requires time for the positive effects regarding the whole business process and elimination of destructive influences on environment to take hold. Therefore, eco-innovation should be pre-tested so as the level of capacity remained minimal and acceptable for a particular amount of time needed for the adjustments dedicated to CER actualization. To be more precise, it is recommended that each company construct a plan that outlines the following core elements of eco-innovative technology implementation: estimating the amount of time needed for pausing business activities and for minimal performance determined by adjustments under CER; financial expenses aimed at implementing the adjustments; decrease in standard revenue of the company; changes in human resources and financial obligations related to it; potential changes of cooperation with partners, customers and investors with preliminary evaluated consequences and alternative solutions. Apart from these assessments and predictions, it is important to identify future targets expected from the suggested eco-innovative technologies—financial, environmental and socio-cultural. Due to such a vivid and transparent plan, the company will have a clearer picture of the future, and all the potential drawbacks in performance can be discussed with partners and investors so as to avoid problems and misunderstandings. Clearly, it is a serious challenge for the developing countries where business evolves and functions relying on more short-term and comparatively limited resources.
Third, the speed of implementation will also be featured with several recommendations based on the outcomes of primary research. It is recommended that companies spend more time on proper planning, preliminary research and pre-testing of the selected technologies and methods of implementation than to strive for maximal speed of implementation. Eco-innovation is basically a phenomenon that encompasses crucial changes for almost every type of contemporary business. Therefore, it is better to minimize and prevent risks prior to actual implementation than to deal with errors and problems after hasty implementation. It is especially relevant in the case of developing countries where there is a deficit of finances and such problems can lead even to failure of business units.
Fourth, it is recommended that companies initiate common changes under CER terms by means of constructive and consistent eco-innovative technologies. “Common changes” refers to combined and properly coordinated efforts of all the local companies targeted at actualization of CER. It is especially relevant when companies with similar destructive effects on environment and society combine their efforts in adjustments to eco-innovative technologies. The logic of the given assumption is as follows: if a particular community has several companies that affect the environment and society in similar ways, eco-innovation in one of them will not suffice for crucial changes needed on the global scale; hence, it is recommended that this issue be discussed with the owners or representatives of all the companies and try to develop a constructive solution. For instance, it can be a process of development of a unified eco-innovative system aimed at actualization of CER priorities and maximal contribution to companies’ productivity rate. This is a constructive suggestion as far as the studied cases of implementation of eco-innovative technologies reveal that each implementation requires significant research, planning, and resources, and these processes will be more effective when performed in a systematic and consistent way, especially in the developing countries where all the resources are rather limited.
Fifth, based on the research, it is recommended that companies actualize eco-based innovation in business domain of developing countries with active engagement of NGOs as third parties. Such a practice will provide more support from NGOs as active media partners in this challenging process. Furthermore, NGOs have particular connections and can attract the attention of potential investors and concerned governmental structures on the issue of eco-innovation implementation and transition to CER values and practices in contemporary business world. Finally, cooperation with NGOs will provide the businesses access to a network of companies that have already succeeded in eco-innovation implementation. Such a network will provide the newcomers with valuable recommendations, examples and cases to rely on in practice.
The present research paper dealt with innovation as a key to efficiency in business based on CER. The given research demonstrated that CER is urgently needed in order to prevent serious natural disasters, preserve natural capital and provide a safe environment for humankind. The ultimate aim of CER phenomenon is to prevent harmful impact of business performance on both the environment and society. CER should become a direct obligation of every company since environmental pollution and deficit of natural resources are serious threats for the future of mankind. As a result, the phenomenon has spurred the ecological innovation that we are witnessing today.
The purpose of the present paper was to provide in-depth insight into potential of eco-innovation on efficiency of CER in the modern business world of developing countries. The aim was actualized via two types of research, namely, primary and secondary ones. Secondary research encompassed a review of credible, relevant and up-to-date sources focused on eco-based innovation in the context of CER. Primary research relied on its findings and employed qualitative research in order to collect a sufficient amount of itemized data on the issue in question. The study also relied on four reliable and vivid case studies as a narrowed focus of secondary research. Qualitative research was actualized by means of a survey.
Based on the outcomes, several innovative recommendations were identified and presented to the target audience in the form of a structured list. To be more precise, these recommendations included the following: 1) security is an ultimate measure of efficiency. If every action is secure, it becomes effective in terms of CER automatically. Actualization of security can be achieved via prior planning; development of preventive measures, solutions and alternatives; and timely response to errors detected; 2) the value of capacity should be positioned and treated as a long-term target. It is crucial to develop a comprehension of capacity as a continuous process. Moreover, business owners should understand that all adjustments or innovations require time and effort. Therefore, it is recommended that every business designs a plan that identifies the main elements of eco-innovative technologies implementation; 3) It is recommended that the speed of implementation is improved via better planning, preliminary research and pre-testing of the selected technologies and methods of implementation. Minimization of risks and confidence in the chosen methods are core aspects in the given context; 4) initiative of creation of common changes under CER terms is another constructive recommendation, especially for developing countries. If a local area has several companies that impose destructive influence on environment and society in similar ways, all of them should implement eco-innovation; otherwise, the effect will not suffice for crucial changes needed on the global scale. Therefore, it is recommended that companies implement CER priorities together with other businesses in the area; 5) finally, it is recommended that businesses actualize eco-based innovation in business domain of developing countries with active engagement of NGOs as third parties. The results of the study can be used for further theoretical research as well as for practical implementation in the business sector.
The authors declare no conflicts of interest regarding the publication of this paper.
Goli, Y.S., Ye, J.M., Ye, Y.L. and Kalgora, B. (2020) Impact of Ecological Related Innovations Enhancing the Efficiency of Corporate Environmental Responsibility. American Journal of Industrial and Business Management, 10, 191-217. https://doi.org/10.4236/ajibm.2020.101013
Model of Criteria of Eco-Innovation Efficiency in terms of CER.
Appendix 2. Survey1) Do you believe that eco-innovation always requires making crucial changes, but at the same time leads to better performance outcomes and higher quality of the final product or service level? (Feel free to expand your response beyond yes and no options).
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2) Do you think CER is being implemented too slowly, too quickly or at a proper pace in the current course of time? (Feel free to expand your response beyond yes and no options).
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3) Do you believe that eco-innovation contributes to scalability of business? (Feel free to expand your response beyond yes and no options. Examples from your own experience would be appreciated).
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4) Do you regard eco-innovation as a threat to business? (Feel free to expand your response beyond yes and no options. Examples from your own experience would be appreciated).
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5) How do you position security in the course of evaluation of efficiency of eco-innovation and CER implemented in modern business units? (Feel free to expand your response beyond yes and no options. Examples from your own experience would be appreciated).
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6) What would be your recommendations for protecting and strengthening security in business under CER terms? (Feel free to expand your response beyond yes and no options. Examples from your own experience would be appreciated).
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7) Comment on the aspect of speed installation of eco-innovations in the modern business world. (Feel free to expand your response beyond yes and no options. Examples from your own experience would be appreciated).
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8) What are your recommendations for improving the speed of installation? (Feel free to expand your response beyond yes and no options. Examples from your own experience would be appreciated).
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9) Do you believe it is possible to predict and prevent errors in the process of eco-innovation implementation?
a) Yes
b) No
10) What are the main factors contributing to effective error handling?
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11) Is data validation a problematic issue in the process of eco-innovation?
a) Yes
b) No
12) List what you believe to be any of the main challenges and drawbacks faced in the context of data validation:
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We would also highly appreciate any additional comments and examples you might wish to offer within the field of focus of the given research. Thank you in advance!
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