The Energy Transition in SMEs: The Italian Experience

Abstract

Encouraging energy transition (ET) has become a global imperative for nations and companies, and not just large ones. Not all economic organizations pursue this process with the same intensity. Particularly, the factors driving Small and Medium Enterprises (SMEs) towards ET are not yet clearly defined, despite SMEs representing most companies and bearing a significant responsibility for pollution. To shed light on this matter, this study presents a framework of the main drivers that stimulate SMEs placed in Italy to pursue energy transition. We conducted a Partial Least Squares (PLS) analysis on data collected from innovation-oriented SMEs enlisted in a specific register of the Italian Ministry of Economic Development. The research findings show a weak interest among SMEs towards ET. While country-specific conditions and social and psychological traits affect the decision to invest in ET, firm-specific factors and ‘stakeholder’ pressures seem to be almost irrelevant. Policy measures with a different focus are necessary. Specifically, the provision of facilitation emerges as the most effective tool for encouraging ET among SMEs.