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The purpose of this paper is to identify the role intermediaries can play in an SME's pursuit for corporate sustainability with a focus on eco-efficiency innovation. The research identifies drivers and barriers for eco-efficiency innovation, and highlights effects induced through collaboration between SMEs and local authorities, on the one hand, and consultancies, on the other. Design/methodology/approach: This paper is based on an exploratory qualitative interview study among German SMEs of the metal and mechanical engineering industry that have participated in "Ecoprofit", an intermediary based program that aims at introducing organizations to the concept of sustainable development through implementation of eco-efficiency innovations. Findings: Our key findings are that first, the proactive approach by a public intermediary (here local authority) is one essential push factor to trigger eco-efficiency innovations in SMEs with low absorptive capacity. Second, we find that SMEs may need facilitation for eco-efficiency innovation from different types of intermediaries (public and private) with different levels of support, which can range from customized and individual to more loosely held support, such as networks. Originality/value: Our study discusses the challenges of corporate sustainability with a focus on ecoefficiency innovations for SMEs and proposes a 'complex intermediary' consisting of a local authority and consultancies as one means to engage SMEs in sustainability. Moreover, it focuses on SMEs in the B2B context, organizations that are often overlooked despite their vast impact. Furthermore, by using a single industry approach, in-depth findings for the metal and mechanical engineering industry are presented.

Increasingly, eco-innovation is a major challenge for small and medium sized enterprises (SMEs). To diffuse eco-innovation, public support programs have been established as interorganizational networks between local authorities and smaller companies. Based on seven public private partnership cases from the eco-efficiency Ecoprofit initiative, we identified three behavioral patterns (hold-up, step-up, and frontrunner) developed by the companies within the partnership. These were the result of an interaction between the companies' green strategy and their related level of absorptive capacity which influenced their ability to respond to the handholding processes offered in the partnership. Reactive companies mostly benefit from agent-based instruments (for example individual consulting). More proactive companies can also capitalize on peer-based handholding (for example 'clubs'). The longitudinal research design shows that public private partnerships can stimulate adaptations in a company's green strategy over time. Propositions and an integrated framework are developed with implications for policy makers.

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