IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i4p1117-d207730.html
   My bibliography  Save this article

What Should SMEs Consider to Introduce Environmentally Innovative Products to Market?

Author

Listed:
  • Daegyu Yang

    () (School of Management, Kyung Hee University, Seoul 02447, Korea)

Abstract

In recent years, companies are challenged not only to develop market competencies but also to deal with environmental issues. Unlike larger companies equipped with abundant resources and sustainable capabilities, small- and medium-sized enterprises (SMEs) are under relatively constrained conditions to effectively deal with environmental concerns as well as market demands. This study attempts to examine a set of potential factors by which SMEs can overcome such limited conditions and bring novel and environmentally beneficial products to market through their innovative activities. Organization theories, such as organizational learning, social network theory, and new-institutional theory, provide a theoretical framework for this study that SMEs may utilize their resources and capabilities from internal, external, and institutional domains. The hypotheses are tested using the Korea Innovation Survey 2010. The analyses show that the likelihood of the market introduction of new and environmentally innovative products is increased not only when an SME makes more monetary investments on internal innovative activities and experiences more success in general innovation activities, but also when an SME inputs more monetary investments into the search for technological knowledge from the outside and utilizes more diverse external information sources. Interestingly, the findings demonstrate that monetary support from the government do not have significant impacts on an SME’s environmental innovation, while a non-monetary technological support system operated by government raises the likelihood of the market introduction of new and environmentally innovative products. Theoretical contributions and managerial implications are discussed.

Suggested Citation

  • Daegyu Yang, 2019. "What Should SMEs Consider to Introduce Environmentally Innovative Products to Market?," Sustainability, MDPI, Open Access Journal, vol. 11(4), pages 1-1, February.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:4:p:1117-:d:207730
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/4/1117/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/11/4/1117/
    Download Restriction: no

    References listed on IDEAS

    as
    1. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    2. Hyundo Choi & Donggyu Yi, 2018. "Environmental innovation inertia: Analyzing the business circumstances for environmental process and product innovations," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1623-1634, December.
    3. Mol, Michael J. & Birkinshaw, Julian, 2009. "The sources of management innovation: When firms introduce new management practices," Journal of Business Research, Elsevier, vol. 62(12), pages 1269-1280, December.
    4. David J. Teece, 2008. "Technology Transfer By Multinational Firms: The Resource Cost Of Transferring Technological Know-How," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 1, pages 1-22, World Scientific Publishing Co. Pte. Ltd..
    5. Raymond Van Wijk & Justin J. P. Jansen & Marjorie A. Lyles, 2008. "Inter‐ and Intra‐Organizational Knowledge Transfer: A Meta‐Analytic Review and Assessment of its Antecedents and Consequences," Journal of Management Studies, Wiley Blackwell, vol. 45(4), pages 830-853, June.
    6. Linda Argote & Ella Miron-Spektor, 2011. "Organizational Learning: From Experience to Knowledge," Organization Science, INFORMS, vol. 22(5), pages 1123-1137, October.
    7. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    8. Mark Easterby‐Smith & Marjorie A. Lyles & Eric W. K. Tsang, 2008. "Inter‐Organizational Knowledge Transfer: Current Themes and Future Prospects," Journal of Management Studies, Wiley Blackwell, vol. 45(4), pages 677-690, June.
    9. Dongphil Chun & Yanghon Chung & Chungwon Woo & Hangyeol Seo & Hyesoo Ko, 2015. "Labor Union Effects on Innovation and Commercialization Productivity: An Integrated Propensity Score Matching and Two-Stage Data Envelopment Analysis," Sustainability, MDPI, Open Access Journal, vol. 7(5), pages 1-19, April.
    10. HanGyeol Seo & Yanghon Chung & Chungwon Woo & Dongphil Chun & Soojeen Sarah Jang, 2016. "SME’s Appropriability Regime for Sustainable Development-the Role of Absorptive Capacity and Inventive Capacity," Sustainability, MDPI, Open Access Journal, vol. 8(7), pages 1-1, July.
    11. Maurizio Zollo & Jeffrey J. Reuer, 2010. "Experience Spillovers Across Corporate Development Activities," Organization Science, INFORMS, vol. 21(6), pages 1195-1212, December.
    12. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlos Fernandez-Jardon & Xavier Martinez-Cobas & Fabian Martinez-Ortiz, 2020. "Technology and Culture in Subsistence Small Businesses," Sustainability, MDPI, Open Access Journal, vol. 12(22), pages 1-1, November.

    More about this item

    Keywords

    small- and medium-sized enterprises (SMEs); environmental innovation; new product introduction; natural-resource-based view (NRBV); organizational learning; social networks; knowledge management; new-institutional theory;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    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:jsusta:v:11:y:2019:i:4:p:1117-:d:207730. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.