TY - JOUR
T1 - Exploring Environmental Regulation Instruments and Their Impact on Eco-Innovation Practices Among SMEs
T2 - The Mediating Role of Environmental Orientation
AU - Mady, Khalid
AU - Battour, Mohamed
AU - Bin-Obaidellah, Sabri Shaker Ashoor
AU - Al Balushi, Maha Khamis
AU - Kennedy, Rowan Elodie
N1 - Publisher Copyright:
© 2024 World Scientific Publishing Europe Ltd.
PY - 2024/9/1
Y1 - 2024/9/1
N2 - 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.
AB - 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.
KW - Eco-innovation
KW - command-and-control instrument
KW - environmental orientation
KW - environmental regulation
KW - market-based instrument
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U2 - 10.1142/S1464333224500108
DO - 10.1142/S1464333224500108
M3 - Article
AN - SCOPUS:85193944712
SN - 1464-3332
VL - 26
JO - Journal of Environmental Assessment Policy and Management
JF - Journal of Environmental Assessment Policy and Management
IS - 3
M1 - 2450010
ER -