Environmental objectives and non-technological innovation in Spanish manufacturing SMEs

Abstract

Environmental issues are currently the order of the day in political, social, and industrial circles. Companies are under pressure to integrate environmental objectives into their strategies, including their innovation activities. However, measuring the impact of this ecological commitment on the results of innovation within the context of small and medium-sized manufacturing enterprises is an unexplored topic. This study was designed to explore the influence of environmental innovation objectives on marketing and organizational innovation outcomes. To this end, data from the Spanish Technological Innovation Panel were used to study 2995 companies during the period from 2011 to 2013. A logit analysis with a marginal effects approach was used to test and validate the research model and proposed hypotheses.The results confirmed that the four environmental objectives analyzed (lower material consumption, less energy expenditure, reduction in environmental impact, and compliance with environmental standards) generally had a positive influence on an organizational and marketing innovation. Specifically, compliance with environmental regulations was the main driver of a better performance in non-technological innovation. These findings suggested that the ecological commitment shown by this type of company may increase their competitive advantage and strengthen the connection between technological and non-technological innovation activities. Practical implications for managers are suggested, along with some proposals for future research.