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Micro is beautiful. Adoption of eco‐innovations in micro‐firms

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  • Andrea Pronti
  • Emy Zecca
  • Davide Antonioli

Abstract

In Europe, micro‐firms contribute significantly to both the economy and the environmental impact on ecosystems. Helping them become greener and stimulating innovation toward new sustainable and circular solutions could substantially contribute to the European goal of achieving carbon neutrality and environmental sustainability, as promoted by the European Green Deal and Next Generation EU programs. Nevertheless, eco‐innovation (EI) by micro‐firms is studied little in the literature. In this paper, we analyze the main determinants of conventional and EI adoption by micro‐firms. We used an ad‐hoc survey developed for enterprises in Emilia‐Romagna (Italy), an important region in terms of innovation where micro‐firms play a significant role in the economy. The paper analyzes whether human capital, training, R&D activities, collaboration activities to improve learning, and the environmental culture within the firm act as main determinants of innovation adoption, in addition to other standard drivers and barriers to innovation adoption studied in the extant literature. Moreover, we compare innovation adoption strategies between micro‐firms and SMEs. While our results highlight differences in the determinants of EI and conventional innovation adoption, there are important heterogeneities when it comes to innovation adoption strategies.

Suggested Citation

  • Andrea Pronti & Emy Zecca & Davide Antonioli, 2024. "Micro is beautiful. Adoption of eco‐innovations in micro‐firms," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1341-1368, February.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:2:p:1341-1368
    DOI: 10.1002/bse.3553
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    2. R. Purushothaman & R. Alamelu & M. Sudha, 2025. "Bridging the Circular Economy Knowledge Gap in SMEs: A Systematic Review of Adoption Barriers, Implementation Strategies, and Theoretical Insights," Circular Economy and Sustainability, Springer, vol. 5(6), pages 5455-5474, November.
    3. Jie Han & Wei Zhang & Cem Işık & Wenju Zhao & Muhammad Anas & Qinglan Zheng & Danxi Xie & Satar Bakhsh, 2024. "Sustainable development pathways: Exploring the impact of green finance on urban metabolic efficiency," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7226-7245, December.
    4. Elisa Chioatto, 2025. "What do circular innovator firms look like in Emilia- Romagna? A cluster analysis of firms innovating in the circular economy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 42(2), pages 405-440, July.

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