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Heterogeneity in Green Markets: Barriers and Drivers Shaping Eco‐Innovation Outcomes

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  • Luisa Marti

Abstract

The transition toward a green economy represents a strategic challenge for enterprises, particularly for small and medium‐sized enterprises (SMEs) that face structural and contextual constraints. This study aims to analyze how internal and external factors jointly determine the generation of revenues from green products and services. Specifically, it examines the moderating role of sectoral and territorial heterogeneity and the mediating influence of barriers (costs, lack of demand, and limited expertise) and drivers (technical capabilities, financial resources, and renewable energy use) in shaping eco‐innovation outcomes. Methodologically, contingency tables were employed to explore the relationship between the supply of green products and variables related to sector and country. These analyses were complemented with ordered logistic regression models to estimate the effects of barriers and drivers on green revenues. The results reveal substantial territorial and sectoral heterogeneity. Regarding barriers, only the costs of environmental actions, lack of demand, and scarcity of specialized knowledge are negatively associated with revenues. With respect to drivers, internal technical expertise, own financial resources, and the use of renewable energy emerge as decisive factors. The study confirms that the green competitiveness of enterprises relies primarily on their internal capabilities, which are further shaped by institutional and sectoral contexts. These findings carry implications for the design of public policies and business strategies.

Suggested Citation

  • Luisa Marti, 2026. "Heterogeneity in Green Markets: Barriers and Drivers Shaping Eco‐Innovation Outcomes," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(3), pages 3107-3122, June.
  • Handle: RePEc:wly:sustdv:v:34:y:2026:i:3:p:3107-3122
    DOI: 10.1002/sd.70507
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