Institutional pressure and eco-innovation: The mediating role of green absorptive capacity and strategically environmental orientation among manufacturing SMEs in Egypt

Authors: Mady, K., Abdul Halim, M.A.S., Omar, K., Abdelkareem, R.S. and Battour, M.

Journal: Cogent Business and Management

Volume: 9

Issue: 1

eISSN: 2331-1975

DOI: 10.1080/23311975.2022.2064259

Abstract:

With the growing concern about climate change, businesses have been under increasing pressure from regulatory agencies and customers to implement proactive environmental practices such as eco-innovation. While environmental pressures have been extensively discussed in the literature as drivers of eco-innovation, empirical evidence on the influence of these pressures on eco-innovation behaviour remains inconsistent. Therefore, the current study essentially aims to investigate the direct effect of institutional pressures, namely, regulation, eco-friendly product demand, and competitive pressure on eco-innovation, coupled with the indirect effect of these pressures by mediating internal drivers of eco-innovation including green absorptive capacity and strategically environmental orientation among manufacturing SMEs in Egypt. Based on a sample of 176 managers and owners of these enterprises, a cross-sectional survey is conducted to collect data related to research constructs. The results of data analysis using Smart-PLS show that all external pressures are not directly associated with eco-innovation. Of the six indirect hypothesized effects, only four indirect effects are supported. The results illustrate that green absorptive capacity mediates the relationship between institutional pressure (eco-friendly product demand and competitive pressure) and eco-innovation. The results also show that strategically environmental orientation mediates the relationship between institutional pressure (regulation and competitive pressure) and eco-innovation. This study provides an in-depth understanding of firms’ responses to institutional pressures as well as the notable implications for SMEs managers, policymakers and future researchers.

https://eprints.bournemouth.ac.uk/39621/

Source: Scopus

Institutional pressure and eco-innovation: The mediating role of green absorptive capacity and strategically environmental orientation among manufacturing SMEs in Egypt

Authors: Mady, K., Halim, M.A.S.A., Omar, K., Abdelkareem, R.S. and Battour, M.

Journal: COGENT BUSINESS & MANAGEMENT

Volume: 9

Issue: 1

ISSN: 2331-1975

DOI: 10.1080/23311975.2022.2064259

https://eprints.bournemouth.ac.uk/39621/

Source: Web of Science (Lite)

Institutional pressure and eco-innovation: The mediating role of green absorptive capacity and strategically environmental orientation among manufacturing SMEs in Egypt

Authors: Mady, K., Abdul Halim, M.A.S., Omar, K., Abdelkareem, R.S. and Battour, M.

Journal: Cogent Business and Management

Volume: 9

Issue: 1

ISSN: 2331-1975

Abstract:

With the growing concern about climate change, businesses have been under increasing pressure from regulatory agencies and customers to implement proactive environmental practices such as eco-innovation. While environmental pressures have been extensively discussed in the literature as drivers of eco-innovation, empirical evidence on the influence of these pressures on eco-innovation behaviour remains inconsistent. Therefore, the current study essentially aims to investigate the direct effect of institutional pressures, namely, regulation, eco-friendly product demand, and competitive pressure on eco-innovation, coupled with the indirect effect of these pressures by mediating internal drivers of eco-innovation including green absorptive capacity and strategically environmental orientation among manufacturing SMEs in Egypt. Based on a sample of 176 managers and owners of these enterprises, a cross-sectional survey is conducted to collect data related to research constructs. The results of data analysis using Smart-PLS show that all external pressures are not directly associated with eco-innovation. Of the six indirect hypothesized effects, only four indirect effects are supported. The results illustrate that green absorptive capacity mediates the relationship between institutional pressure (eco-friendly product demand and competitive pressure) and eco-innovation. The results also show that strategically environmental orientation mediates the relationship between institutional pressure (regulation and competitive pressure) and eco-innovation. This study provides an in-depth understanding of firms’ responses to institutional pressures as well as the notable implications for SMEs managers, policymakers and future researchers.

https://eprints.bournemouth.ac.uk/39621/

Source: BURO EPrints