With the growing concern about climate change, businesses have been under increasing pressure from regulatory agencies and customers to implement proactive environmental practices such as eco-innovation. While environmental pressures have been extensively discussed in the literature as drivers of eco-innovation, empirical evidence on the influence of these pressures on eco-innovation behaviour remains inconsistent. Therefore, the current study essentially aims to investigate the direct effect of institutional pressures, namely, regulation, eco-friendly product demand, and competitive pressure on eco-innovation, coupled with the indirect effect of these pressures by mediating internal drivers of eco-innovation including green absorptive capacity and strategically environmental orientation among manufacturing SMEs in Egypt. Based on a sample of 176 managers and owners of these enterprises, a cross-sectional survey is conducted to collect data related to research constructs. The results of data analysis using Smart-PLS show that all external pressures are not directly associated with eco-innovation. Of the six indirect hypothesized effects, only four indirect effects are supported. The results illustrate that green absorptive capacity mediates the relationship between institutional pressure (eco-friendly product demand and competitive pressure) and eco-innovation. The results also show that strategically environmental orientation mediates the relationship between institutional pressure (regulation and competitive pressure) and eco-innovation. This study provides an in-depth understanding of firms’ responses to institutional pressures as well as the notable implications for SMEs managers, policymakers and future researchers.
16 February 2024 in Cleaner and Responsible Consumption
Although previous research endeavours have extensively explored the environmental pressure-performance relationship, their findings have been inclusive. Therefore, this paper examines the direct and indirect (through the mediating role of eco-innovation) impact of regulatory pressure and eco-friendly product demand on sustainable competitive advantage. The research model was examined using Structural Equation Modeling methodology, analyzing data gathered from 183 senior managers within Egyptian SMEs. Several findings have been yielded, which are: (1) eco-innovation is positively motivated by regulatory pressure and eco-friendly product demand; (2) the direct link between environmental pressures (regulatory pressure, eco-friendly product demand) and sustainable competitive advantages is not statistically significant; and (3) eco-innovation acts as a mediator in the relationship between these environmental pressures and sustainable competitive advantage. This research theoretically contributes to the institutional theory of the firm and competitive advantages theory. Particularly, the findings of this research theoretically emphasize that eco-innovation plays a prominent role in alleviating and translating environmental pressures exerted on manufacturing SMEs into sustainable competitive advantages. Furthermore, the research provides practical implications, policy recommendations, limitations, and further research avenues.
This article examines the direct and indirect (through strategic decision-making processes) impacts of knowledge visualisation on strategic decision quality and strategic decision commitment in small- and medium-sized enterprises (SMEs). Structural equation modelling (SEM) methodology was used to test the research model based on data collected from 209 senior managers of manufacturing SMEs that operate in food production in Egypt. The results suggest that knowledge visualisation has a significant positive effect on strategic decision-making processes, strategic decision quality and strategic decision commitment. In addition, strategic decision quality is dependent on strategic decision-making processes, but decision-making processes do not significantly impact strategic decision commitment. Knowledge visualisation through strategic decision-making processes could help organisations in making high-quality decisions. The research adds to the theories of knowledge-based view (KBV) and rational decision-making by demonstrating that knowledge visualisation could be a catalyst for effective strategic decision-making.
This study investigated the mediating role of Dynamic Capabilities (DC) in the relationship between Entrepreneurial Orientation (EO) and Business Process Performance (BPP). Moreover, it investigates the moderating role of strategy type in the EO-DC-BPP relationship. A quantitative paradigm was followed using SEM-PLS methodology to analyze data from 179 SMEs operating in food production in Egypt. The study found a strong and positive mediating effect of DC on the EO-BPP relationship.