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Leaders and Laggards in Environmental Innovation: An Empirical Analysis of SMEs in Europe

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  • Angela Triguero
  • Lourdes Moreno‐Mondéjar
  • María A. Davia

Abstract

The main purpose of this article is studying the factors influencing eco‐innovative intensity in the European SMEs. Building upon the 'innovation triangle model', business competences, environmental orientation and network involvement are considered as the main determinants of 'greenness' of innovation in a sample of 3852 SMEs. Four categories of eco‐innovators (leaders, followers, loungers and laggards) are identified, and their profiles/driving factors are described using a generalized ordinal logistic model. Our results confirm that the increasing demand for green products and the adoption of eco‐organizational innovation affect positively the level of environmental innovation, while technological lock‐ins have the opposite effect across all categories. Neither leaders nor laggards are influenced by environmental policies. Small firms and those who give importance to financial constraints tend not to achieve upper categories, while valuing technological capabilities, market power and networks are crucial determinants of being in upper categories of eco‐innovation intensity. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

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  • Angela Triguero & Lourdes Moreno‐Mondéjar & María A. Davia, 2016. "Leaders and Laggards in Environmental Innovation: An Empirical Analysis of SMEs in Europe," Business Strategy and the Environment, Wiley Blackwell, vol. 25(1), pages 28-39, January.
    • Handle: RePEc:bla:bstrat:v:25:y:2016:i:1:p:28-39
    DOI: 10.1002/bse.1854
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    9. Tulin Dzhengiz & Eva Niesten, 2020. "Competences for Environmental Sustainability: A Systematic Review on the Impact of Absorptive Capacity and Capabilities," Journal of Business Ethics, Springer, vol. 162(4), pages 881-906, April.
    10. Naffa, Helena & Fain, Máté, 2022. "A factor approach to the performance of ESG leaders and laggards," Finance Research Letters, Elsevier, vol. 44(C).
    11. Dezhong Duan & Qifan Xia, 2021. "Does Environmental Regulation Promote Environmental Innovation? An Empirical Study of Cities in China," IJERPH, MDPI, vol. 19(1), pages 1-18, December.
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    14. Zhongju Liao, 2018. "Institutional pressure, knowledge acquisition and a firm's environmental innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 849-857, November.
    15. Ardito, Lorenzo & Raby, Simon & Albino, Vito & Bertoldi, Bernardo, 2021. "The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance," Journal of Business Research, Elsevier, vol. 123(C), pages 44-56.
    16. Zhongju Liao, 2018. "Market Orientation and FIRMS' Environmental Innovation: The Moderating Role of Environmental Attitude," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 117-127, January.
    17. Elisabet Aguado & Adelheid Holl, 2018. "Differences of Corporate Environmental Responsibility in Small and Medium Enterprises: Spain and Norway," Sustainability, MDPI, vol. 10(6), pages 1-13, June.
    18. Pilar Portillo-Tarragona & Sabina Scarpellini & Jose M. Moneva & Jesus Valero-Gil & Alfonso Aranda-Usón, 2018. "Classification and Measurement of the Firms’ Resources and Capabilities Applied to Eco-Innovation Projects from a Resource-Based View Perspective," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    19. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    20. Hui‐Cheng Yu & Bor‐Yuan Tsai, 2018. "Environmental policy and sustainable development: An empirical study on carbon reduction among Chinese enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 1019-1026, September.
    21. Mäkitie, Tuukka & Steen, Markus & Saether, Erik Andreas & Bjørgum, Øyvind & Poulsen, René T., 2022. "Norwegian ship-owners' adoption of alternative fuels," Energy Policy, Elsevier, vol. 163(C).
    22. Polina Baranova & Fred Paterson, 2017. "Environmental capabilities of small and medium sized enterprises: Towards transition to a low carbon economy in the East Midlands," Local Economy, London South Bank University, vol. 32(8), pages 835-853, December.
    23. Raquel Ortega-Lapiedra & Miguel Marco-Fondevila & Sabina Scarpellini & Fernando Llena-Macarulla, 2019. "Measurement of the Human Capital Applied to the Business Eco-Innovation," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    24. Hartmann, Julia & Inkpen, Andrew & Ramaswamy, Kannan, 2022. "An FsQCA exploration of multiple paths to ecological innovation adoption in European transportation," Journal of World Business, Elsevier, vol. 57(5).
    25. Zhou, Min & Govindan, Kannan & Xie, Xiongbiao & Yan, Liang, 2021. "How to drive green innovation in China's mining enterprises? Under the perspective of environmental legitimacy and green absorptive capacity," Resources Policy, Elsevier, vol. 72(C).

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