Exploring Environmental Regulation Instruments and Their Impact on Eco-Innovation Practices Among SMEs: The Mediating Role of Environmental Orientation
Khalid Mady, Mohamed Battour, Sabri Shaker Ashoor Bin-Obaidellah, Maha Khamis Al Balushi, Rowan Elodie Kennedy
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引用次数: 0
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.
期刊介绍:
The Journal of Environmental Assessment Policy and Management is an interdisciplinary, peer reviewed, international journal covering policy and decision-making relating to environmental assessment (EA) in the broadest sense. Uniquely, its specific aim is to explore the horizontal interactions between assessment and aspects of environmental management (not just the vertical interactions within the broad field of impact assessment) and thereby to identify comprehensive approaches to environmental improvement involving both qualitative and quantitative information. As the concepts associated with sustainable development mature, links between environmental assessment and management systems become all the more essential.