Drivers of multiple eco-innovation and the impact on sustainable competitive advantage: evidence from manufacturing SMEs in Egypt

Abstract

Purpose This study aims to investigate the drivers of three main eco-innovation types within the manufacturing small- and medium-sized enterprises (SMEs) in Egypt, as well as to examine the impact of these types in sustaining competitive advantage. Design/methodology/approach The positivist methodological paradigm is adopted in this study, with 183 valid questionnaires collected from the owners and executives of manufacturing SMEs. The SmartPLS has been used to analyse the data. Findings Results show that internal drivers (organisational capabilities, absorptive capacity and strategically environmental orientation) affect eco-innovation types. External drivers (regulation, eco-friendly products demand and competitive advantage) do not significantly affect eco-innovation types. The results also reveal that both eco-organisational and eco-process innovations significantly affect sustainable competitive advantage. Practical implications This study has presented valuable insights for owners and executives of SMEs and policymakers in the business and manufacturing industry. Originality/value This study has presented valuable insights for literature on eco-innovation, owners and executives of SMEs and policymakers manufacturing industry to depth-understanding of drivers of eco-innovation types. in addition, the role of eco-innovation types in sustaining competitive advantage for SMEs has been a significant contribution to eco-innovation literature.