Green Innovation in SMEs: A Managerial Route to SDG 9 and SDG 13 Exploring the adoption of eco-innovations in small business strategy

Abstract

Sustainable development goal (SDG) seeking has become a business strategic stand in the world. Specifically, SDG 9 (Industry, Innovation, and Infrastructure) and SDG 13 (Climate Action) note the importance of innovation to allow sustainable industrialization and reduce climate change. Small and medium-sized business (SMEs) with their limited resources consist of a considerable percentage of the world economic activity and environmental effect. One of the initiatives, which this paper examines as a means of attaining these SDGs, is the use of managerial green innovation in SMEs. Based on literature and empirical contributions, we discuss the motivation, impediments, and consequences of adoption of eco-innovation in the SME strategies. Case studies are combined with survey data in a paradigm referred to as a mixed-method approach that examines managerial decision-making, sustainable integration of technology, and development of products as well as processes. Results indicate that it is a major facilitator to have managerial commitment and access to green financing as well as regulatory support, whereas knowledge gaps, cost pressures, and cultural resistance are the major challenges. The work is not just of theoretical nature, and the researchers offer practical suggestions to SME managers and policymakers that could be accepted in the aim of promoting green innovation faster. Pragmatic constraints relate to regional coverage of targeted industries and short period of observation that does not touch on too many effects in the long run. Future studies are needed to look at cross-industry comparative studies, the role of digital transformation and eco-innovation and trajectories of cumulative environmental benefits over the years..