Adoption of Green Innovation in SMEs: A Literature Review

Abstract

SMEs as engines of macroeconomic expansion, not only contribute to social and economic progress but also have a significant negative impact on the environment. SMEs are the main source of greenhouse gas emissions in every region, but due to lack of resources as well as knowledge, they are unable to engage at the desired level. The government is focusing its efforts on developing new green strategies and learning about innovative green solutions that will help SMEs reduce their greenhouse gas emissions. This study will discuss a literature review of several research results regarding Green Innovation including the concept of Green Innovation, the adoption Green Innovation in SMEs, as well as the drivers and barriers in such adoption. The research method used is a literature review of several articles and research journals that discuss Green Innovation. The findings from this literature review are that the adoption of Green Innovation in SMEs can occur in the internal context of the organization, the external environment, and in the context of technology. The results from this study suggest managerial implication, by continually enhancing knowledge of the SMEs long-term goals and developing technology to accomplish corporate efficiency, the SMEs continue to sustain the company's innovative performance so that it continues to improve. This literature review can provide an understanding of the adoption of Green Innovation in SMEs for all parties involved, especially academics, researchers, and practitioners in the field of innovation.