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Encouraging SMEs’ Green Innovation Through Stakeholder Pressure: The Moderating and Mediating Role of Environmental Commitment and Ethics

Author

Listed:
  • Umme Kulsum

    (Department of Banking and Insurance, University of Chittagong, Chittagong 4331, Bangladesh)

  • Anamul Haque

    (Department of Banking and Insurance, University of Chittagong, Chittagong 4331, Bangladesh)

  • Rubayet Hasan

    (Department of Banking and Insurance, University of Chittagong, Chittagong 4331, Bangladesh)

  • Fakhrul Hasan

    (Newcastle Business School, Northumbria University, Newcastle NE1 8ST, UK)

Abstract

This study investigates how stakeholder pressures (SSTPR) prompt SMEs to perform green innovation (GRNI) activities by grounding the analysis exclusively in stakeholder theory. It employs a survey questionnaire to gather information from 141 top- and mid-level executives working in various SME manufacturing firms (listed in DSE, CSE, foreign SMEs) in Bangladesh. The structural equation modeling (SEM) technique is used to analyze data and test hypotheses. The study’s findings reveal that SSTPR, both primary and secondary, have a significant positive impact on the firm’s degree of GRNI. Moreover, it has also been found that environmental commitment (ENVC) has a positive moderating effect on the relation between stakeholder influences and GRNI. On the other hand, environmental ethics (ENVE) has a partial mediation impact on this relationship. The results shed light on the crucial role of stakeholder influence, ENVC, and ENVE in promoting GRNI behavior. These findings will fill knowledge gaps on the factors that drive SMEs’ investments in GRNIs with insightful implications for regulators, managers, and policymakers. This study also assists Bangladesh’s sustainable agenda by bolstering green and sustainable innovation activities.

Suggested Citation

  • Umme Kulsum & Anamul Haque & Rubayet Hasan & Fakhrul Hasan, 2025. "Encouraging SMEs’ Green Innovation Through Stakeholder Pressure: The Moderating and Mediating Role of Environmental Commitment and Ethics," JRFM, MDPI, vol. 18(12), pages 1-21, December.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:12:p:721-:d:1819600
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    Cited by:

    1. Jaroslav Belas & Richard Yeaw Chong Seow & Alexandra Dorusincova & Frederik Rech & Khurram Ajaz Khan, 2026. "How Do SMEs Attitudes toward Stakeholders Shape Their Sustainability Assessment? An Empirical Study from the V4 Countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 28(72), pages 774-774, April.

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