Abstract
Despite the growing body of eco-innovation literature, the drivers of eco-innovation adoption of small and medium enterprises (SMEs) in the least developing countries are relatively under-researched. Drawing on the theory of reasoned action, this study uncovers the antecedents of SMEs’ adoption of eco-innovation in Myanmar. We develop a conceptual model which we empirically test employing multiple regression analysis with the data from a sample of SMEs in Myanmar (n = 800). Results find that customer demands, rivalry pressures, managerial environmental concerns, environmental regulations, and firm innovation capabilities positively and significantly influence the eco-innovation adoption of small and medium enterprises in Myanmar. Among the five determinants, the influence of firm innovation capabilities is found to be the most significant. The research findings offer insights to the policymakers, SMEs managers, and researchers on what drives SMEs’ adoption of eco-innovation in Myanmar, which helps implement environmental policies and strategies to reduce the environmental impact caused by economic growth in the context of least developing countries.
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