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Leaders and Laggards in Environmental Innovation: An Empirical Analysis of SMEs in Europe

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  • Angela Triguero
  • Lourdes Moreno‐Mondéjar
  • María A. Davia

Abstract

The main purpose of this article is studying the factors influencing eco‐innovative intensity in the European SMEs. Building upon the 'innovation triangle model', business competences, environmental orientation and network involvement are considered as the main determinants of 'greenness' of innovation in a sample of 3852 SMEs. Four categories of eco‐innovators (leaders, followers, loungers and laggards) are identified, and their profiles/driving factors are described using a generalized ordinal logistic model. Our results confirm that the increasing demand for green products and the adoption of eco‐organizational innovation affect positively the level of environmental innovation, while technological lock‐ins have the opposite effect across all categories. Neither leaders nor laggards are influenced by environmental policies. Small firms and those who give importance to financial constraints tend not to achieve upper categories, while valuing technological capabilities, market power and networks are crucial determinants of being in upper categories of eco‐innovation intensity. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Angela Triguero & Lourdes Moreno‐Mondéjar & María A. Davia, 2016. "Leaders and Laggards in Environmental Innovation: An Empirical Analysis of SMEs in Europe," Business Strategy and the Environment, Wiley Blackwell, vol. 25(1), pages 28-39, January.
    • Handle: RePEc:bla:bstrat:v:25:y:2016:i:1:p:28-39
    DOI: 10.1002/bse.1854
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    13. Mäkitie, Tuukka & Steen, Markus & Saether, Erik Andreas & Bjørgum, Øyvind & Poulsen, René T., 2022. "Norwegian ship-owners' adoption of alternative fuels," Energy Policy, Elsevier, vol. 163(C).
    14. Hartmann, Julia & Inkpen, Andrew & Ramaswamy, Kannan, 2022. "An FsQCA exploration of multiple paths to ecological innovation adoption in European transportation," Journal of World Business, Elsevier, vol. 57(5).
    15. Eun Kyung Jang & Mi Sun Park & Tae Woo Roh & Ki Joo Han, 2015. "Policy Instruments for Eco-Innovation in Asian Countries," Sustainability, MDPI, vol. 7(9), pages 1-29, September.
    16. Ardito, Lorenzo & Raby, Simon & Albino, Vito & Bertoldi, Bernardo, 2021. "The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance," Journal of Business Research, Elsevier, vol. 123(C), pages 44-56.
    17. Salvatore Esposito De Falco & Giuseppe Scandurra & Antonio Thomas, 2021. "How stakeholders affect the pursuit of the Environmental, Social, and Governance. Evidence from innovative small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1528-1539, September.
    18. Martin Thomas Falk & Eva Hagsten, 2020. "Time for carbon neutrality and other emission reduction measures at European airports," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1448-1464, March.
    19. Shyaam Ramkumar, 2020. "Influence of Inter-Firm Network Relationships on Circular Economy Eco-Innovation Adoption," Sustainability, MDPI, vol. 12(18), pages 1-22, September.
    20. Alfonso Carfora & Giuseppe Scandurra & Antonio Thomas, 2021. "Determinants of environmental innovations supporting small‐ and medium‐sized enterprises sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2621-2636, July.
    21. Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
    22. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    23. Hui‐Cheng Yu & Bor‐Yuan Tsai, 2018. "Environmental policy and sustainable development: An empirical study on carbon reduction among Chinese enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 1019-1026, September.
    24. Polina Baranova & Fred Paterson, 2017. "Environmental capabilities of small and medium sized enterprises: Towards transition to a low carbon economy in the East Midlands," Local Economy, London South Bank University, vol. 32(8), pages 835-853, December.

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