Original title: Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities
The researchers surveyed manufacturing small and medium-sized firms in emerging markets. They found that stakeholder pressurePressure from groups with an interest in a firm, such as people or organizations affected by its actions. is linked to a firm’s ability to adapt to environmental demands, called green dynamic capability. That capability is linked to green innovationNew or changed products or processes aimed at environmental goals., and green innovation is linked to firm performance. The analysis also suggests that these two links help explain how pressure relates to innovation and how capability relates to performance.
Imagine a small bakery trying to cut waste because customers and suppliers are asking it to. The requests alone do not change how the bakery works; it needs the ability to adjust its routines, and those changes may lead to new ways of baking that affect how well the business performs. In this paper, the requests stand for stakeholder pressure, changing routines for green dynamic capability, new baking practices for green innovation, and business results for firm performance.
For small and medium-sized manufacturers, pressure from stakeholders may matter not only directly, but through the firm’s ability to adapt its environmental practices. The results link that capability to green innovation, which in turn is linked to performance; they do not show that every firm will benefit in the same way.
The abstract reports survey data from 248 manufacturing SMEs in emerging markets and associations examined with PLS path modeling. It does not establish that these relationships are causal, or show whether they apply to firms in other sectors or settings. It also gives no detail on the specific stakeholder pressures, innovations, or performance measures.
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Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities — Sanjay Kumar Singh, Manlio Del Giudice, Charbel José Chiappetta Jabbour et al. — Business Strategy and the Environment — doi:10.1002/bse.2906
Abstract licence: CC BY
Explanation generated by Synthesis from the abstract — it is not the original paper.