The Role of an SME’s Green Strategy in Public-Private Eco-innovation Initiatives: The Case of Ecoprofit

Abstract

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.

Microfoundations of companies' dynamic capabilities for environmentally sustainable innovation: Case study insights from high‐tech innovation in science‐based companies

“…To date, some studies draw on established organizational and managerial theories to investigate how companies manage innovation for environmental sustainability (Seebode, Jeanrenaud, & Bessant, ). These studies emanate from the perspectives of the resource‐based view (RBV) (Bönte & Dienes, ; Kammerer, ; Ziegler & Seijas Nogareda, ), an entrepreneurship perspective (Larson, ; Stafford, Polonsky, & Hartman, ), organizational learning theory (Vickers, , ), and the absorptive capacity concept (Clarke & Roome, ; Hansen & Klewitz, ; Ketata et al, ). These studies mostly point to company resources and competencies as key factors for innovating towards environmental sustainability and as the basis of companies' competitive advantage.…”

SMEs and the Potential for A Collaborative Path to Environmental Responsibility

“…Despite the proven difficulties, a growing number of studies are demonstrating how, in a variety of contexts, partnership approaches to sustainability (beyond those embodied in GSCM principles) are empowering SMEs with regard to environmental responsibility – for example cleaner production in Dutch SMEs through partnerships with local authorities (Gombault and Versteege, ), the role of intermediate organizations supporting environmental improvements in SMEs in the Netherlands (Hoevenagel and Wolters, ), private–public networks focusing on sustainability for tourism SMEs in four European countries (Halme and Fadeeva, ) and business supply chain partnerships in Hong Kong and China (Cheung et al ., ). In terms of specific collaborative initiatives, examples include Enviroclub, instigated by a number of federal government agencies in Canada, whereby 10–15 SMEs form a club in order to execute a pollution prevention project (Huppe et al ., ); oriented to a similar clustering format are the waste minimization clubs that were implemented under the UK's waste strategy in order to facilitate both waste reduction and financial savings for participant firms (Pratt and Phillips, ) and Ecoprofit, a German intermediary industry based programme that (in partnership with local authorities and consultants) worked with SMEs to introduce concepts of sustainable development via eco‐innovation uptake (Hansen and Klewitz, ; Klewitz et al ., ).…”

CEOs' regulatory focus, slack resources and firms' environmental innovation

“…(Hambrick & Mason, 1984). Empirical research conducted in developing countries is relatively scarce (Hansen & Klewitz, 2012). However, research based on upper echelons theory to explore eco-innovation has been limited.…”

“…Finally, previous empirical studies have mainly taken place in developed countries, such as the USA, Germany, Britain and France (Ghisetti & Rennings, 2014;Rubashkina, Galeotti, & Verdolini, 2015). Empirical research conducted in developing countries is relatively scarce (Hansen & Klewitz, 2012).…”