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Exploring Environmental Regulation Instruments and Their Impact on Eco-Innovation Practices Among SMEs: The Mediating Role of Environmental Orientation

Author

Listed:
  • Khalid mady

    (College of Business Administration, A’Sharqiyah University, Ibra, Oman, Faculty of Commerce, Kafrelsheikh University, Kafr el-Sheikh, Egypt)

  • Mohamed Battour

    (College of Business Administration, A’Sharqiyah University, Ibra, Oman, Faculty of Commerce, Tanta University, Tanta, Egypt)

  • Sabri Shaker Ashoor Bin-Obaidellah

    (Faculty of Administrative Sciences, Seiyun University, Seiyun, Yemen5Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Kuala Terengganu, Malaysia)

  • Maha Khamis Al Balushi

    (Department of Marketing, College of Economics and Political Science, Sultan Qaboos University, Muscat, Oman)

  • Rowan Elodie Kennedy

    (Department of Marketing, College of Economics and Political Science, Sultan Qaboos University, Muscat, Oman)

Abstract

Despite a vast body of eco-innovation literature investigating the assumption that environmental regulations encourage the implementation of eco-innovative practices, previous research on eco-innovation and environmental regulations has yielded inconsistent findings. By considering the heterogeneity of environmental regulation and eco-innovations, this study sheds light on how different environmental regulation instruments can facilitate and enhance eco-innovation practices, along with the role of environmental orientation in mediating the relationships. The study surveyed 188 managers and owners and utilised the partial least squares-structural equation model as the analytical method. Results showed that environmental regulatory mechanisms have no direct impact on eco-innovation. However, the study has found that environmentally oriented SMEs respond to strict environmental policies and regulations by undertaking eco-innovation practices. Furthermore, market-based instruments provide firms with strong environmental orientation and economic incentives to foster eco-process innovations. The study offers practical insights for policymakers and SME managers, in addition to advancing the knowledge base.

Suggested Citation

  • Khalid mady & Mohamed Battour & Sabri Shaker Ashoor Bin-Obaidellah & Maha Khamis Al Balushi & Rowan Elodie Kennedy, 2024. "Exploring Environmental Regulation Instruments and Their Impact on Eco-Innovation Practices Among SMEs: The Mediating Role of Environmental Orientation," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 26(03), pages 1-32, September.
    • Handle: RePEc:wsi:jeapmx:v:26:y:2024:i:03:n:s1464333224500108
    DOI: 10.1142/S1464333224500108
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