An Analysis of Eco-Innovation Capabilities among Small and Medium Enterprises in Malaysia

Abstract

The objective of this study is to look at how Malaysian small and medium enterprises (SMEs) are applying eco-innovation capabilities in order to sustain their business performance. Eco-innovation capabilities are represented in this study by five different types of practices, with the indication of unexpected circumstances: eco-product innovation, eco-process innovation, eco-organisational innovation, eco-marketing innovation, and eco-technology innovation. The qualitative research approach was used in the study, and the content analysis was based on in-depth interviews with six top-level managers/owners of Malaysian manufacturing SMEs. According to the data, more than half of SMEs acquired eco-innovation capabilities in order to continue their business performance and thrive in the business sector, while having to confront certain hurdles due to unforeseen situations. According to the findings, eco-innovation capabilities encourage SMEs to engage in waste management, recycling or reusing resources, research and development, sustainable goods that utilize customer requests, and the use of environment management machines. Thus, the findings of this study may aid the efforts of government agencies, policymakers, and top-tier manufacturing SMEs in building an exceptional innovation platform on which SMEs may rely for assistance and support in preserving their business performance in the future and beyond.

Strategic Dimensions of Eco-Innovation Adoption in Manufacturing SMEs in the Context of Mexico City

“…According to the literature, strategic orientation encourages SMEs to engage in waste management, recycling or reuse of resources, research, and development, producing sustainable products that take advantage of customer requests, and using machines. of environmental management [163]. Furthermore, market orientation and value co-creation positively affect green product innovation in the context of small and medium-sized enterprises.…”

“…However, SMEs face several challenges in this regard, including lack of awareness, outdated equipment, and limited resources [152]. However, as the literature studied shows, policymakers, and top-tier manufacturing SMEs in building an exceptional innovation platform that SMEs can rely on for assistance and support to preserve their business performance in the future and beyond [153]. For the experts, Mexico City has done very little work in ensuring a technological environment for manufacturing SMEs to adapt their production processes towards eco-innovative practices.…”

“Eco-Innovation”: Transforming into a Sustainable Future

“…Additionally, eco-innovation research plays a crucial role in understanding consumer behaviour and preferences towards sustainable products and services. By studying consumer attitudes and motivations, researchers can provide valuable insights to businesses on how to design and market eco-friendly offerings that meet customer demands [8].…”

Determinants of eco-innovation capabilities adapted by Malaysian SMEs during the COVID-19 pandemic

“…Several studies have agreed that the finding of the study correlated with the adoption of those practices of technological innovation (Azmi et al, 2017). This eco-innovation competence can contribute to better environmental sustainability and a decrease in both local and global greenhouse gases (Bilal et al, 2022;Sukri et al, 2023).…”