Intermediaries driving eco‐innovation in SMEs: a qualitative investigation

Abstract

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.

Understanding the drivers of sustainable entrepreneurial practices in Pakistan’s leather industry

“…At the same time, the literature on drivers also reports some evidence about the supportive role of intermediary organisations in advancing sustainable entrepreneurship in SMEs (e.g. Klewitz et al, 2012).…”

“…They have made them realise that by becoming environmentally responsible they could simultaneously protect the wider natural environmental, serve environmentally sensitive customers, comply with regulations and achieve eco-efficiency (Ortolano et al, 2014;Van Berkel, 2007). While such an active role of intermediary organisations in transforming environmental behaviour of firms has been observed in some European countries (Bruijn and Lulofs, 2001;Klewitz et al, 2012;Pimenova and van der Vorst, 2004;York and Venkataraman, 2010), these organisations have been financially supported by national governments, highlighting the effectiveness of strong institutional structures in these economies. In contrast, the CPCs in Pakistan have not been financially backed by national government, but by international sponsors (Ortolano et al, 2014).…”

In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level

“…Furthermore, according to Shrivastava (1995) environmental technologies help companies to establish a social presence on markets where they operate, gain social legitimacy and maintain good public relations and corporate image. Improved firm reputation through the implementation of sustainable practices is an important driver for corporate businesses (Pellegrini-Masini and Leishman 2011; Klewitz et al 2012); in particular, green product development seems to be driven by improvement of reputation and corporate image (Dangelico and Pujari 2010). Based on a sample of Italian companies, image improvement was found in 80% of companies to be the strongest stimulus for the introduction of environmental management systems (ISO 14001) (Salomone 2008).…”

“…Companies also start to deploy eco-innovation in order to pursue benefits derived from its implementation, including cost savings (Horbach 2008;Belin et al 2011;Demirel and Kesidou 2011;Horbach et al 2012;Klewitz et al 2012;Triguero et al 2013;Chassagnon and Haned 2014) and improvement of firm reputation (Agan et al 2013;Chen 2013;Sarkar 2013). Shrivastava (1995) summarized a few other benefits deriving from successful eco-innovation implementation: improved relationships with local communities, access to new green markets and gain of competitive advantage.…”

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“…Eco-innovation and better environmental performance can lead to the reduction of several expenditures, especially in the following areas: cost of materials, energy and services; cost of capital; cost of labor; risk management and relations with external stakeholders [Ambec, Lanoie, 2008]. Based on a study of SMEs, Klewitz [Klewitz, 2012] found that companies can benefit from cost savings (increased energy efficiency) when dealing with sustainability-related issues. Large financial gains can thus be derived from energy and material saving, waste reduction, and addressing lifecycle costs [Shrivastava, 1995].…”