article · International Journal of Innovation Science
Internal drivers strongly influence eco-innovation within manufacturing small and medium-sized enterprises in Egypt. An examination of survey data from 183 enterprise owners and executives reveals that organisational capabilities, absorptive capacity, and a strategic environmental orientation directly drive different forms of eco-innovation. In contrast, external pressures such as government regulation, market demand for eco-friendly goods, and competitive pressures show no significant impact on driving these eco-innovations. When looking at long-term performance, both eco-organisational and eco-process innovations significantly enhance sustainable competitive advantage. These insights offer operational directions for business leaders and industrial policymakers seeking to foster environmental innovation and maintain competitiveness within the manufacturing sector.
Manufacturing businesses frequently face pressure to adopt greener practices while staying profitable. This research clarifies that internal capacity and strategic commitment, rather than external regulations or market pressures, are the primary triggers for sustainable innovation. Furthermore, it demonstrates that investing in organisational and process-focused environmental practices can directly build and sustain long-term competitive advantage.
The findings provide applied empirical guidance for manufacturing executives, small and medium-sized enterprise owners, and industrial policymakers. By pointing to internal capability development and eco-process innovation as the primary sources of sustainable advantage, the insights can inform management strategies and policy incentives. The work is empirical management research based on survey data, offering tested frameworks rather than a direct commercial product.
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Purpose This study aims to investigate the drivers of three main eco-innovation types within the manufacturing small- and medium-sized enterprises (SMEs) in Egypt, as well as to examine the impact of these types in sustaining competitive advantage. Design/methodology/approach The positivist methodological paradigm is adopted in this study, with 183 valid questionnaires collected from the owners and executives of manufacturing SMEs. The SmartPLS has been used to analyse the data. Findings Results show that internal drivers (organisational capabilities, absorptive capacity and strategically environmental orientation) affect eco-innovation types. External drivers (regulation, eco-friendly products demand and competitive advantage) do not significantly affect eco-innovation types. The results also reveal that both eco-organisational and eco-process innovations significantly affect sustainable competitive advantage. Practical implications This study has presented valuable insights for owners and executives of SMEs and policymakers in the business and manufacturing industry. Originality/value This study has presented valuable insights for literature on eco-innovation, owners and executives of SMEs and policymakers manufacturing industry to depth-understanding of drivers of eco-innovation types. in addition, the role of eco-innovation types in sustaining competitive advantage for SMEs has been a significant contribution to eco-innovation literature.
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DOI: 10.1108/ijis-01-2021-0016
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