As the impact of small and medium-sized enterprises (SMEs) on the environment increases, there is a need for effective environmental policies to sustain their development. Under this condition, SMEs implement innovation to meet environmental regulations and to achieve environmental competitiveness in sustainability. We examine the impact of environmental innovation on labor productivity in SME manufacturers. The literature shows that complementary assets help SMEs to increase their performance in environmental innovation. Therefore, we study the interactive effects of the SMEs’ business-group affiliation and the listing status on the relationship between environmental innovation and labor productivity. We add these interaction terms to multivariate regressions by using the 2010 Korea Innovation Survey. The results show that SMEs are able to use environmental innovation as a business strategy for green growth with improved labor productivity. Also, the results highlight that the business-group affiliation and the listing status as the complementary assets positively moderate the performance of the environmental innovation of the SMEs.

Research and development (R&D) is a critical factor in sustaining a firm’s competitive advantage. Accurate measurement of R&D productivity and investigation of its influencing factors are of value for R&D productivity improvements. This study is divided into two sections. The first section outlines the innovation and commercialization stages of firm-level R&D activities. This section analyzes the productivity of each stage using a propensity score matching (PSM) and two-stage data envelopment analysis (DEA) integrated model to solve the selection bias problem. Second, this study conducts a comparative analysis among subgroups categorized as labor unionized or non-labor unionized on productivity at each stage. We used Korea Innovation Survey (KIS) data for analysis using a sample of 400 Korean manufacturers. The key findings of this study include: (1) firm innovation and commercialization productivity are balanced and show relatively low innovation productivity; and (2) labor unions have a positive effect on commercialization productivity. Moreover, labor unions are an influential factor in determining manufacturing firms’ commercialization productivity.