Fostering investment in resource efficiency actions: the case of European SMEs

Abstract

The present paper analyses the factors associated with intensity in resource efficiency practices of European SMEs, considering four categories of firms according to their level of investment (very low, low, medium and high). Based on the stakeholder theory, we estimate a generalised ordinal logistic model which allows us to analyse the relationship between internal and external pressures, resources and capabilities and different categories of investments in resource efficiency. Results confirm that environmental organisational capabilities and financial resources are positively associated with the probability of achieving the highest investment intensity. The pressure of customers and providers and technical expertise increase the probability of firms' moving from low levels of investment to medium levels. On the other hand, regulation, managerial environmental and economic awareness and external pressures from competitors increase the probability to remain in the group of the low resource efficiency. Finally, technological and organisational capabilities moderate the effect of stakeholder pressures on resource efficiency investment.

Determinants of Energy Efficient Innovation: A Systematic Literature Review

“…According to Ghisetti and Rennings [4], eco-innovation is classified as follows: (1) energy efficient innovation, that is, an innovation that reduces energy and/or material use; (2) environmental innovation, that is, an innovation that reduces negative environmental impacts, such as air, water pollution, and harmful materials. However, both types of eco-innovation (i.e., those that reduce pollution or those that reduce energy) face the "double externality problem" typical for eco-innovation [34,35], and reduce the negative environmental impact. Meanwhile, Arranz et al [36] suggested measuring eco-innovation activity of the firm by considering the following criteria: (1) less energy per production; (2) lower environmental impact; (3) improvement in health and safety; (4) compliance with regulatory requirements.…”

“…Previous experience [25,64] Technological capabilities [34,70] Green capabilities [34,69] Innovation capabilities [64] Knowledge development [25] Organizational innovation [33,67] Financial resources [34] Investment in tangible assets [67] Meso Market dynamics Competitive pressure [5] Customer and provider pressure [34,38,39…”

“…Chappin et al [3] analyzed the Dutch brewing and paper industries and revealed that the financial advantage obtained due to energy efficient innovation was important for both industries, but especially for the paper industry. However, Moreno-Mondéjar and Cuerva [34] disclosed that cost savings motivated firms to engage in energy eco-innovation only up to a certain point. Therefore, the study confirmed that motivation related to cost savings did not lead to medium or large investments by firms [34].…”

“…However, Moreno-Mondéjar and Cuerva [34] disclosed that cost savings motivated firms to engage in energy eco-innovation only up to a certain point. Therefore, the study confirmed that motivation related to cost savings did not lead to medium or large investments by firms [34].…”

“…Financial resources. The lack of financial resources was found to be significantly associated with a less proactive environmental strategy of SMEs [34]. While eco-innovations, increasing efficiency, reducing energy or material costs, and increasing revenues [5] demand significant investments, larger firms have more resources and capabilities to conduct these programs.…”