IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v13y2023i4p113-d1125794.html
   My bibliography  Save this article

An Analysis of Eco-Innovation Capabilities among Small and Medium Enterprises in Malaysia

Author

Listed:
  • Najahul Kamilah Aminy Sukri

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Kuala Nerus 21030, Malaysia)

  • Siti Nur ‘Atikah Zulkiffli

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Kuala Nerus 21030, Malaysia)

  • Nik Hazimah Nik Mat

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Kuala Nerus 21030, Malaysia)

  • Khatijah Omar

    (Institute of Tropical Biodiversity and Sustainable Development, Universiti Malaysia Terengganu, Kuala Nerus 21030, Malaysia)

  • Mukhammad Kholid Mawardi

    (Faculty of Administrative Sciences, Brawijaya University, Kota Malang 65145, Indonesia)

  • Nur Farah Zafira Zaidi

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Kuala Nerus 21030, Malaysia)

Abstract

The objective of this study is to look at how Malaysian small and medium enterprises (SMEs) are applying eco-innovation capabilities in order to sustain their business performance. Eco-innovation capabilities are represented in this study by five different types of practices, with the indication of unexpected circumstances: eco-product innovation, eco-process innovation, eco-organisational innovation, eco-marketing innovation, and eco-technology innovation. The qualitative research approach was used in the study, and the content analysis was based on in-depth interviews with six top-level managers/owners of Malaysian manufacturing SMEs. According to the data, more than half of SMEs acquired eco-innovation capabilities in order to continue their business performance and thrive in the business sector, while having to confront certain hurdles due to unforeseen situations. According to the findings, eco-innovation capabilities encourage SMEs to engage in waste management, recycling or reusing resources, research and development, sustainable goods that utilize customer requests, and the use of environment management machines. Thus, the findings of this study may aid the efforts of government agencies, policymakers, and top-tier manufacturing SMEs in building an exceptional innovation platform on which SMEs may rely for assistance and support in preserving their business performance in the future and beyond.

Suggested Citation

  • Najahul Kamilah Aminy Sukri & Siti Nur ‘Atikah Zulkiffli & Nik Hazimah Nik Mat & Khatijah Omar & Mukhammad Kholid Mawardi & Nur Farah Zafira Zaidi, 2023. "An Analysis of Eco-Innovation Capabilities among Small and Medium Enterprises in Malaysia," Administrative Sciences, MDPI, vol. 13(4), pages 1-24, April.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:4:p:113-:d:1125794
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/13/4/113/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/13/4/113/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Geng, Duanyang & Lai, Kee-hung & Zhu, Qinghua, 2021. "Eco-innovation and its role for performance improvement among Chinese small and medium-sized manufacturing enterprises," International Journal of Production Economics, Elsevier, vol. 231(C).
    2. Ángela Triguero & María C. Cuerva & Francisco J. Sáez‐Martínez, 2022. "Closing the loop through eco‐innovation by European firms: Circular economy for sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2337-2350, July.
    3. Kemp, René & Pontoglio, Serena, 2011. "The innovation effects of environmental policy instruments — A typical case of the blind men and the elephant?," Ecological Economics, Elsevier, vol. 72(C), pages 28-36.
    4. Mihaela DIACONU, 2011. "Technological Innovation: Concept, Process, Typology and Implications in the Economy," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(10(563)), pages 127-144, October.
    5. Yi‐Chuan Liao & Kuen‐Hung Tsai, 2019. "Innovation intensity, creativity enhancement, and eco‐innovation strategy: The roles of customer demand and environmental regulation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 316-326, February.
    6. Zhang, Yue-Jun & Peng, Yu-Lu & Ma, Chao-Qun & Shen, Bo, 2017. "Can environmental innovation facilitate carbon emissions reduction? Evidence from China," Energy Policy, Elsevier, vol. 100(C), pages 18-28.
    7. Micael-Lee Johnstone & Lay Tan, 2015. "Exploring the Gap Between Consumers’ Green Rhetoric and Purchasing Behaviour," Journal of Business Ethics, Springer, vol. 132(2), pages 311-328, December.
    8. Edilson Bacinello & Gérson Tontini & Anete Alberton, 2021. "Influence of corporate social responsibility on sustainable practices of small and medium‐sized enterprises: Implications on business performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 776-785, March.
    9. Mouzas, Stefanos & Bauer, Florian, 2022. "Rethinking business performance in global value chains," Journal of Business Research, Elsevier, vol. 144(C), pages 679-689.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Han, Myat Su & Chen, Weiming, 2021. "Determinants of eco-innovation adoption of small and medium enterprises: An empirical analysis in Myanmar," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    2. Haoran Zhang & Rongxia Zhang & Guomin Li & Wei Li & Yongrok Choi, 2020. "Has China’s Emission Trading System Achieved the Development of a Low-Carbon Economy in High-Emission Industrial Subsectors?," Sustainability, MDPI, vol. 12(13), pages 1-20, July.
    3. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    4. Awaworyi Churchill, Sefa & Inekwe, John & Smyth, Russell & Zhang, Xibin, 2019. "R&D intensity and carbon emissions in the G7: 1870–2014," Energy Economics, Elsevier, vol. 80(C), pages 30-37.
    5. Christoph P. Kiefer & Pablo Del Río González & Javier Carrillo‐Hermosilla, 2019. "Drivers and barriers of eco‐innovation types for sustainable transitions: A quantitative perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 155-172, January.
    6. Juan Luo & Chong Xu & Boyu Yang & Xiaoyu Chen & Yinyin Wu, 2022. "Quantitative Analysis of China’s Carbon Emissions Trading Policies: Perspectives of Policy Content Validity and Carbon Emissions Reduction Effect," Energies, MDPI, vol. 15(14), pages 1-20, July.
    7. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    8. Bai-Chen Xie & Jie Gao & Shuang Zhang & ZhongXiang Zhang, 2017. "What Factors Affect the Competiveness of Power Generation Sector in China? An Analysis Based on Game Cross-efficiency," Working Papers 2017.12, Fondazione Eni Enrico Mattei.
    9. Zhang, Yue-Jun & Liu, Zhao & Zhou, Si-Ming & Qin, Chang-Xiong & Zhang, Huan, 2018. "The impact of China's Central Rise Policy on carbon emissions at the stage of operation in road sector," Economic Modelling, Elsevier, vol. 71(C), pages 159-173.
    10. Na Zhang & Jinqian Deng & Fayyaz Ahmad & Muhammad Umar Draz & Nabila Abid, 2023. "The dynamic association between public environmental demands, government environmental governance, and green technology innovation in China: evidence from panel VAR model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9851-9875, September.
    11. Razzaq, Asif & Sharif, Arshian & Ozturk, Ilhan & Skare, Marinko, 2022. "Inclusive infrastructure development, green innovation, and sustainable resource management: Evidence from China’s trade-adjusted material footprints," Resources Policy, Elsevier, vol. 79(C).
    12. Wang, Chao & Zhang, Yue-Jun, 2022. "The effect of environmental regulation and skill premium on the inflow of FDI:Evidence from Chinese industrial sectors," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 227-242.
    13. Farzana Riva & Solon Magrizos & Mohammad Rabiul Basher Rubel, 2021. "Investigating the link between managers' green knowledge and leadership style, and their firms' environmental performance: The mediation role of green creativity," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3228-3240, November.
    14. Tan, Xiujie & Sun, Qian & Wang, Meiji & Se Cheong, Tsun & Yan Shum, Wai & Huang, Jinpeng, 2022. "Assessing the effects of emissions trading systems on energy consumption and energy mix," Applied Energy, Elsevier, vol. 310(C).
    15. Wang, Mei Ling, 2023. "Effects of the green finance policy on the green innovation efficiency of the manufacturing industry: A difference-in-difference model," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    16. Xin Nie & Jianxian Wu & Han Wang & Weijuan Li & Chengdao Huang & Lihua Li, 2022. "Contributing to carbon peak: Estimating the causal impact of eco‐industrial parks on low‐carbon development in China," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1578-1593, August.
    17. Teemu Makkonen & Sari Repka, 2016. "The innovation inducement impact of environmental regulations on maritime transport: a literature review," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 10(1), pages 69-86.
    18. Malayaranjan Sahoo & Narayan Sethi, 2022. "The dynamic impact of urbanization, structural transformation, and technological innovation on ecological footprint and PM2.5: evidence from newly industrialized countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4244-4277, March.
    19. Staffan Waldo & Anton Paulrud, 2017. "Reducing Greenhouse Gas Emissions in Fisheries: The Case of Multiple Regulatory Instruments in Sweden," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 275-295, October.
    20. Sun, Chuanwang & Zhan, Yanhong & Du, Gang, 2020. "Can value-added tax incentives of new energy industry increase firm's profitability? Evidence from financial data of China's listed companies," Energy Economics, Elsevier, vol. 86(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:13:y:2023:i:4:p:113-:d:1125794. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.