Purpose: Pursuing sustainable development has become a necessity for all types of businesses, owing to the increasing sensitivity of stakeholders towards pollution and environmental degradation related to economic activities. To sustain this approach, investments supporting green innovations (GIs) are required. The paper investigates how stakeholders affect the choices of companies to pursue sustainable development objectives through the use of GIs.Design/methodology/approach: A sample of 222 innovative Italian SMEs was collected and analysed using the partial least squares structural equation modelling technique and the importance performance map analysis.Findings: The authors found that the stakeholders with not-contractual ties with SMEs affect GIs. Among stakeholders with not-contractual ties only workforce represents a strong stimulus to eco-innovate. Anyway, contrary to expectations, public administrations exert a negative influence; that is, they appear to hinder SMEs approach towards GIs.Practical implications: This paper contributes to filling the knowledge gaps about the factors stimulating innovative SMEs' investments in GIs. Specifically, by analysing the stakeholders' influences, many policy indications emerge, such as extending facilities and regulations, encouraging partnerships and networking and attracting private and institutional investors.Originality/value: Until now, the prominent interest of researchers and policymakers has been focused almost exclusively on large manufacturing corporations because of their higher ecological footprints and the belief that SMEs are supposed to be mainly followers rather than first adopters of innovations. But in many international areas, the role of SMEs is widely predominant, and these SMEs chiefly operate in the service sectors.

The need to pursue sustainable development has become a central topic in Western countries due to citizens' greater sensitivity to improving environmental and social conditions. Companies can reach this objective more easily through green innovations, which are now considered a strategic opportunity that simultaneously allows for adherence to sustainable development criteria and the pursuit of competitive advantages. Scholars have identified the determinants that encourage companies to adopt green innovations, but the outcomes of their investigations thus far have often been ambiguous and contradictory. Our paper proposes an interpretative framework for addressing such inconsistencies. Using the partial least squares structural equation modelling (PLS‐SEM) methodology, we validate this framework on a sample of small‐ and medium‐sized enterprises (SMEs) and show that SMEs' choices are influenced by cultural elements and stimulated by the prospect of obtaining economic advantages over competitors. SMEs also pay close attention to stakeholder solicitations, while public administration does not affect their eco‐innovating choices. The results have policy implications for executives and insiders.