Environmental pressures and eco-innovation in manufacturing SMEs: the mediating effect of environmental capabilities

Abstract

Purpose

Although environmental pressures have been covered in great detail in prior literature as the drivers of eco-innovation, there remains inconsistency in the empirical results concerning the effects of these pressures on eco-innovation behaviour. Hence, this paper aims to investigate the impact of environmental pressures, namely, regulatory pressure, green demand and competitive pressure, on eco-innovation among manufacturing SMEs. Moreover, it examined the mediating role of environmental capabilities on the environmental pressure–eco-innovation relationship.

Design/methodology/approach

Quantitative data were collected using an online self-reported questionnaire survey to test the hypothesised model. A total of 183 valid questionnaires were collected from managers and owners of manufacturing SMEs in Egypt.

Findings

The results of the data analysis using the Smart-PLS software package revealed that among environmental pressures, only green demand had a direct effect on eco-innovation. In addition, environmental capabilities only mediated the effect of competitive pressure on eco-innovation.

Originality/value

This study has been one of the few addressing the issue of how the drivers of eco-innovation interact. It has also provided the managers and owners of SMEs and policymakers with practical implications.

Citation

Mady, K., Abdul Halim, M.A.S., Omar, K., Battour, M. and Abdelkareem, R.S. (2024), "Environmental pressures and eco-innovation in manufacturing SMEs: the mediating effect of environmental capabilities", International Journal of Innovation Science, Vol. 16 No. 3, pp. 501-526. https://doi.org/10.1108/IJIS-08-2022-0163