Abstract This article examines the relationship between intangible assets investment and firm innovation performance. Following the resource-based view of the firm and the more recent dynamic capabilities perspective, we approach and explore intangibles as a heterogeneous asset portfolio rather than a compact form of knowledge capital. Using data from a large-scale survey across seven European countries, we investigate the innovation impact of two aspects of investments in intangible assets: (1) technological and non-technological investments and (2) investments in internally developed and externally acquired assets. Our results indicate that both technological and non-technological intangible investments are crucial for innovation. Technological intangibles exhibit a stronger relationship with product innovation and non-technological intangibles with business process innovation; nevertheless, the appropriate integration and balance of investments in multiple intangibles can be key to successful innovation performance. Finally, internally developed intangibles have a more pronounced innovation impact than externally acquired ones. This study yields interesting policy implications.

Purpose This study aims to examine the impact of peers, including competitors, ecosystem members and other firms in the industry, on innovation in knowledge-intensive business services (KIBS) and investigates the role of human capital practices and organizational structure in this relationship. Design/methodology/approach This research is based on a survey of 400 KIBS firms in Russia. It uses logit regression models to analyze the likelihood of various innovation types, including product and business process innovations. Key variables include the influence of peers, human resource management (HRM) practices and organizational structure. Findings The use of peer knowledge is positively associated with business process innovations, particularly in creating external networks and partnerships. However, their impact on product innovation is negligible. Firms using peer knowledge do not exhibit higher sensitivity to HRM practices. The organizational structure, specifically a higher proportion of top management, is negatively associated with innovation for peer-dependent firms. Originality/value This study uniquely addresses the role of peer influence on innovation within KIBS, distinguishing it from other external sources of knowledge. It contributes to understanding the mediating effects of HRM practices and organizational structures, emphasizing the nuanced interplay between peer knowledge and innovation processes. This research highlights the importance of strategic network creation and a balanced organizational hierarchy for fostering innovation in service-oriented firms.

Transformation is a fundamental and comprehensive change in an entity, be it an individual, organization, system, or even an object, which results in different conditions. Transformation has been described by various names, digital transformation, logistics transformation and some also call it leadership transformation. COVID-19, which hit the world, has brought many changes to various business landscapes. In several business sectors this has become the starting point for transformation and PT POS Indonesia is also not free from this. The purpose of this study is to determine and analyze the implementation of digital transformation and logistics transformation that have been implemented by PT POS Indonesia. This research was conducted at the Head Office of PT POS Indonesia located at Jln Cilaki No. 73. This study uses a descriptive quantitative method involving 140 employees with a total population of 215, samples were obtained using the Slovin method with an error rate of 5%, employees work in the logistics courier business directorate and the business development and portfolio management directorate. Data collection was carried out by distributing questionnaires via google form to respondents. The results showed that the average value of each indicator was below 3,400, meeting the requirements for research. Digital transformation with an average value of 3.01, Logistics transformation with an average value of 3.04, Digital Literacy with an average value of 3.05, Business Process Innovation with an average value of 2.95, Company Performance with an average value of 3.27. Research proves that Digital Transformation, Logistics Transformation, and Digital Literacy have a positive and significant effect on Business Process Innovation. Business Process Innovation also has a positive and significant effect on Company Performance. In addition, Digital Transformation, Logistics Transformation and Digital Literacy have been proven to have a positive and significant direct effect on Company Performance. By utilizing technology, work processes in the Logistics sector will be increasingly assisted

The digitisation of economic activity is a pivotal factor in enhancing the productivity, transparency and innovation of business processes, ensuring rapid data exchange and access to global markets. It has been demonstrated that the aforementioned factors contribute to the creation of new business models, reduce transaction costs and form competitive advantages in the global digital economy. The article examines the peculiarities of the implementation of digitalisation policies in developed countries, identifies the peculiarities of the innovation development strategy, and conducts a comparative analysis of existing approaches in developed countries. The identification of salient features thus enabled an analysis of Ukraine's digitalisation policy in the context of prevailing global trends and the ongoing state of war. The research was conducted through the administration of surveys to business representatives regarding their collaboration with other stakeholders and the extent of their utilisation of digitalisation and digital recovery policies in the process of rebuilding and relocating businesses. Digitalisation is emerging as a pivotal catalyst for regional advancement in Ukraine, fostering the establishment of a smart economy, even within regions that have traditionally experienced limited development. In the contemporary geopolitical landscape, characterised by profound challenges related to military situations and the pressing need for strategies focused on post-war recovery, this process assumes a particularly salient role. A multi-level approach to digital transformation is dictated by the specific characteristics of Ukraine's regions, which demonstrate varying degrees of readiness to implement modern digital solutions. Western regions, including Lviv, Ivano-Frankivsk, and Ternopil, are distinguished by their accelerated development in digital services, advanced logistics, educational technologies, and the establishment of IT clusters. This progress establishes the basis for the subsequent scaling of their achievements and the integration of regional successes into the national context. The central part of the country is characterised by significant opportunities for the digitalisation of the agro-industrial complex and industrial sectors, where the latest technologies can become a key factor in productivity growth and production process optimisation. Conversely, the Eastern and Southern regions encounter a multitude of obstacles that impede their digital advancement. In this context, it is imperative to implement measures that will result in a substantial enhancement of the infrastructure base, with particular emphasis on the domains of energy, public safety, and the acquisition of technical equipment to augment production capacities. The establishment of a smart economy necessitates a bespoke approach to each region, with consideration for numerous factors, including natural resources, the digital competence of the population, human resources, and the investment attractiveness of the territories. The successful implementation and development of these approaches is significantly influenced by public-private partnerships. The present interaction facilitates the implementation of projects that are intended to develop infrastructure, establish modern industrial parks, launch innovative startups and prepare educational programmes with the aim of deepening digital literacy. The advent of global digitalisation trends has engendered a plethora of novel prospects for Ukraine to integrate into the European Union's digital sphere, to attract foreign technological investment, and to establish competitive smart regions on the international stage. In the context of martial law, the introduction of smart solutions is becoming a critically important means of managing urban infrastructure, ensuring uninterrupted business operations, and guaranteeing the availability of digital services to the population. The efficacy of such models is contingent upon the implementation of multi-level development strategies that are designed to address prevailing impediments and establish sustainable foundations for prosperity within each region.

This study analyzes the effects of Product Innovation (PI) and Business Process Innovation (BPI) on firm performance and empirically tests the mediating role of Digital Transformation (DT) and the moderating role of emerging digital technologies. Using data from 3,219 service-sector firms in the 2023 Korea Innovation Survey, we show that innovation translates into performance primarily through the organizational pathway of DT, and that the possession and use of digital technologies amplify this effect. The results are as follows. First, both PI and BPI have significant positive effects on sales performance. Second, DT partially mediates both relationships, indicating that the more firms internalize innovation through digitalization, automation, and data-driven operations, the stronger the translation of innovation into performance. Third, emerging digital technologies significantly strengthen the performance effects of PI and BPI as a moderator, confirming that the level of technological adoption is a key factor determining the strength of the innovation–performance link. In short, DT operates as a mediator, whereas emerging digital technologies operate as a moderator. These findings suggest that firms should move beyond “what to innovate (product/process)” to focus on “how to convert innovation into performance (organizational DT)” and “with what technological capabilities to reinforce it (use of newdigital technologies).” Theoretically, the study contributes by empirically identifying, within the Resource-Based View (RBV), a dual pathway of innovation–transformation– performance and the boundary conditions imposed by emerging digital technologies. Practically, it implies that firms must build internal DT capabilities while strategically leveraging external new technologies to convert innovation into performance. At the policy and industry levels, the results point to the need for support of the digital ecosystem and supply chain–level DT policies.

Research background: Innovation is an important determinant of economic development, and its importance is growing with the advancement of digitization and the development of the Fourth Industrial Revolution. In turn, the assessment of the innovativeness of a country’s economy affects its investment attractiveness and international image. Purpose of this study: Given the factors presented above, the main aim of this study is to explore and compare the innovativeness of European economies in the context of the modified European Innovation Scoreboard. Methods: To achieve this goal, the authors propose two key modifications of the existing innovation assessment methodology contained in the European Innovation Scoreboard. The first concerns the principles of the normalization of assessment indicators and aims to eliminate extreme assessment values. The second proposes to remove the indicators which are difficult to measure, subjective, and not always useful: (1) those related to sustainable development (resource productivity; emissions of fine particulates; and environment-related technologies) and (2) those that take into account only small and medium-sized enterprises (SMEs introducing product innovations; SMEs introducing business process innovations; and innovative SMEs collaborating with others). Findings & value added: An alternative approach to assessing the innovativeness of the analyzed countries — as proposed by the authors — resulted in changes in the ranking of countries in relation to the European Innovation Scoreboard, but the changes were not significant. The major changes concerned Serbia (down four places), Belgium (down two places), Hungary (up three places), and Poland (up two places). In addition, five countries moved up one place in the ranking (the UK, the Netherlands, Luxembourg, Estonia, Slovenia, Spain, and Slovakia), and five lost one place in the ranking (Norway, Italy, Portugal, Greece, and Croatia). Thirteen countries had no changes. The obtained results allowed us to conclude that the countries with the best and the worst innovativeness maintained the assessment level regardless of changes in the methodology of its implementation. The objectification of rules had the strongest impact on the countries in the middle of the ranking. This study draws attention to the problem of the subjectivity of the innovation rankings. It has also been documented that modifying the selection of evaluation criteria may change the final position in the ranking, which, in the case of emerging and developing economies, may affect investor assessment and economic growth opportunities. Such considerations are important because they are outside the often uncritical mainstream approach to the assessment of the innovativeness of economies. The conclusions imply the need for a multisource analysis of innovation and a critical look at the proposed methodologies.

This study examines the effects of technological and non-technological innovation activities on firm performance in the service sector, with a focus on the mediating role of non-technological innovation and the moderating role of collaboration. Using data from the 2023 Korean Innovation Survey (KIS) - Service Sector by STEPI, the analysis targets 710 service firms that implemented technological innovation between 2020 and 2022. Technological innovation is defined as product and service innovation, while non-technological innovation refers to business process innovation. Firm performance was measured using the natural logarithm of 2022 sales. Hierarchical regression analysis and the Sobel test were applied to test the hypotheses. The findings are as follows: Technological innovation has a significant positive effect on firm performance. Non-technological innovation partially mediates this relationship, implying that technological innovation contributes to financial outcomes both directly and through improvements in business processes. However, collaborative activities showed a negative moderating effect. Firms with low levels of collaboration showed a stronger positive relationship between technological innovation and performance, while high collaboration levels weakened or reversed this effect. This suggests that excessive collaboration may dilute strategic focus and increase coordination costs, leading to diminished performance. This study contributes to the innovation literature by integrating mediation and moderation frameworks and applying theories such as the resource-based view, dynamic capabilities, ambidexterity, and open innovation to the service industry sector. Future research should explore time-lagged effects, partner-specific collaboration attributes, and cross-industry comparisons.

Today, sometimes a misunderstanding exists between Artificial Intelligence (AI) and technology, but evidence shows that they are helping each other succeed; however, they are not the same. This paper explores the interplay between Artificial Intelligence (AI) and entrepreneurship, examining how AI technologies are reshaping business operations, decision-making, and innovation processes. Through a hybrid approach combining a literature review and empirical data from a survey conducted in the Balkan region (Albania, Kosovo, and North Macedonia), the research analyzes AI adoption across different business sectors and organizational sizes. The findings reveal a strong correlation between AI integration and increased digitalization, encouragement of innovation, and enhancement of decision-making. With over 1,200 valid respondents, the study highlights both the opportunities and challenges associated with AI implementation, including the importance of staff motivation, strategic alignment, and data utilization. The impact of AI on our daily routines is well known, but significant transitions are also occurring in business with this virtual support. AI is often referred to as a personal owner consultant. This research contributes to the theoretical foundation of digital entrepreneurship and offers practical insights for leveraging AI to accelerate business growth and competitiveness in an evolving digital economy.

In the context of increased instability in the global economy due to the COVID-19 pandemic and the full-scale war in Ukraine, enterprises in different countries face significant resource constraints. Therefore, the implementation of new organizational, managerial, and marketing methods, which are less costly compared to new products and technologies, is of particular importance. The study of the specific features of business innovation implementation in EU enterprises was conducted based on the results of the Community Innovation Survey and the Oslo Manual recommendations. It was found that during the 2020 crisis associated with the COVID-19 pandemic, and in the context of limited funds for financing innovation activities, EU enterprises reduced the implementation of product innovations and, conversely, more actively implemented business process innovations. The most popular business process innovations were related to information processing and communications, as well as organizational decision-making and the management of external relations. In addition, enterprises have been actively implementing business process innovations related to decision-making and human resource management, as well as marketing methods such as promotion, packaging, pricing, product placement, and after-sales service. At the same time, innovations related to new methods of producing goods and services (technological processes), as well as logistics, supply, or distribution of resources, goods, or services, were much less in demand. Based on the CIS 2020 data, the reasons for the hampering of innovation activity by EU enterprises were revealed. It can be assumed that the most important reason for the reduced implementation of new products and production methods by enterprises during the crisis is their desire to reduce costs in the face of resource constraints and lack of funds to finance innovation activities. In turn, the continuous updating of information technologies necessary for successful business, as well as the implementation of less expensive new organizational, managerial, and marketing methods, allows enterprises to compensate for the temporary halt in the introduction of new products and technological processes. It is concluded that new organizational, managerial, and marketing methods can replace product innovations and new production methods during periods of economic instability and crisis. Therefore, these types of innovations can be considered substitutes. Moreover, during times of economic instability and resource constraints, the introduction of less expensive new organizational, managerial, and marketing methods becomes a priority. A comparison of the innovation activities of EU enterprises during the 2020 COVID-19 crisis with those during the 2007-2009 financial and economic crisis led to the conclusion that the trend mentioned above is long-term. This trend should be taken into account when developing an innovation policy for Ukrainian enterprises, both under martial law and during post-war recovery.

This study investigates the relationship between entrepreneurial orientation and innovation performance, with particular emphasis on the moderating influence of perceived impacts of social regulation—categorized as either facilitative or inhibitory to innovation. Using firm-level data from the 2020 Korea Innovation Survey (KIS) in the manufacturing sector, the analysis finds that entrepreneurial orientation positively and significantly drives both product innovation and business process innovation. Notably, the moderating effect of perceived social regulations varies by regulatory domain: environmental regulations are found to dampen the positive linkage between entrepreneurial orientation and product innovation, whereas consumer safety and hygiene regulations reinforce it. This study aims to propose important theoretical and practical significance for research in the field of entrepreneurial orientation, innovation performance, and social regulation by examining the impact of entrepreneurial orientation on product innovation and business process innovation and verifying the moderating effect of social regulation.

PurposeOrganizations face diverse challenges in navigating their less-structured business processes (LSBPs). These LSBPs are characterized by an unpredictable and often knowledge-intensive nature, unlike structured processes that have standardized actions. Conventional business process management approaches often encounter difficulties to foster innovation within organizations that are primarily dealing with LSBP characteristics, resulting in managers facing difficulties in identifying and evaluating their innovation efforts in an LSBP-environment. To help these managers, this study iteratively develops and validates a brainstorming tool designed as a practical guide for assessing an organization’s current (A-IS) and desired capabilities (TO-BE) and prioritizing improvement actions for innovating LSBPs.Design/methodology/approachThis research follows a design-science research (DSR) methodology by integrating build-test iterations through expert evaluations, real-life case studies and workshops across multiple industries.FindingsThe findings extend knowledge in business process management and innovation management by offering a practical tool for assessing and improving an organization’s innovation capability in LSBPs. Ample empirical evidence demonstrates that the tool allows revealing distinct capability distributions across different areas, highlighting specific strengths in each capability area.Research limitations/implicationsThe study is limited to qualitative evaluation methods. Others limitations relate to the specific terminology and thus complexity of certain questions, which may affect accessibility for users. The tool is intended for content-specific workshops, not as a replacement for existing systems.Practical implicationsThe tool helps organizations with a systematic approach to assess their AS-IS and define TO-BE capabilities. It facilitates a critical gap analysis, prioritization of resources using effort impact matrix and implementation tracking.Originality/valueThis study introduces a novel brainstorming tool designed for innovating in LSBPs.

Introduction. Inclusive development of agricultural enterprises is possible under the conditions of implementing a sharing and circular business model. The purpose of the article is to propose a basic model of the interconnection of the structural elements of the circular and sharing economy, which formed the basis of the modern development of the agricultural sector, and to present their innovative, ecological, and inclusive actualization. Methods. To achieve the specified goal, the work used the methods of grouping, analysis and synthesis, generalization, comparison, and the systemic method. Results. The fact that the inclusive development of the agricultural sector based on environmental friendliness, waste-free production, and rational and economical use of resources is one of the goals of sustainable development is substantiated and revealed. The constituent structural elements of the circular and sharing economy, which formed the basis of the development of the agricultural sector, making it inclusive, are presented. Itʼs indicated that the sharing economy model is used in various sectors of the economy: mobility industry, retail trade, entertainment, multimedia, telecommunications, agricultural, energy, financial sectors, tourism, and hospitality. Conclusions. It is substantiated that the joint use of movable and immovable property will allow business entities to spend less on purchasing new means of labor and invest more in innovating business processes, accelerating the transition to green technologies and the formation of a circular economy.

An important task and prerequisite for effective institutional management of the economy's digitalization processes is the development of practical tools for strategic planning of the development of its components—sectors, complexes, and enterprises. Implementing these strategies will ensure the intensification of transformation processes and introduce new organizational and economic mechanisms of digital transformation and innovative development. This article aims to develop models of strategies for institutional management of the economy's digital transformations. Of key importance in the formation and implementation of strategies and programs for systemic innovative digital transformations of the economy is their structural and substantive modeling, which allows for a reasonable determination of priority areas, methodological and practical approaches, specific tools (measures), as well as taking into account the current conditions of these changes, in particular - the impact of factors of instability of the global environment. The formation and implementation of strategies for institutional digital transformations of the economy, based on the proposed methodological principles, ensures the successful implementation of changes, contributes to the creation of a motivational institutional environment for digital innovations and the development of highly efficient sectors of the national economy, the functioning of which is based on innovative business processes, management and production technologies. The main priority, in our opinion, should be precisely the institutional transformations associated with forming a network system of economic relations and business processes, as well as the introduction of new mechanisms for interaction between the state, society, and business in the context of digital platforms. In the end, this will make it possible to successfully overcome the negative consequences of the crisis caused by the war.

Artificial intelligence has revolutionized hybrid cloud management by addressing critical challenges in resource allocation, cost optimization, and operational efficiency. Organizations adopting AI-driven solutions have achieved significant improvements in workload prediction, network optimization, and automated scaling capabilities. The implementation of these technologies across various sectors, particularly in retail, demonstrates substantial benefits in cost reduction, performance enhancement, and system reliability. Through structured implementation frameworks and robust governance mechanisms, organizations can maximize the value of AI integration while maintaining necessary human oversight and control. The transformation extends beyond technical improvements, fostering innovation in business processes and enabling organizations to adapt swiftly to changing market demands. The integration of AI in cloud management has also catalyzed the development of more sophisticated approaches to data security, compliance management, and cross-platform resource optimization, establishing new standards for enterprise-scale cloud operations and digital transformation initiatives.

The advancement of technology, particularly artificial intelligence (AI) and digital literacy, has brought significant changes to the workforce, including the economic sector. This study aims to analyze the role of AI and digital literacy in enhancing employee effectiveness and efficiency. AI enables the automation of routine tasks, optimization of decision-making, and increased productivity through faster and more accurate data analysis. Meanwhile, digital literacy is a crucial factor for employees to adapt to new technologies and utilize digital tools optimally. This research employs a qualitative method with a literature review approach to examine the impact of AI implementation and digital literacy levels on employee performance. The findings indicate that a combination of AI and digital literacy can improve work efficiency, reduce administrative burdens, and support innovation in business processes. However, challenges such as human resource readiness and adaptation to technological changes remain significant barriers. Therefore, strategies to enhance digital competencies for employees and policies supporting AI integration in the workplace are needed.

ABSTRACT The present research aims to understand the internal and external determinants of business innovation in India. The data used for the study comes from the World Bank and corresponds to the year 2022 for 4132 enterprises. Logistic regression models were implemented as statistical techniques. It is concluded that product innovation, exports, research and development, employee training, and access to loans positively stimulate innovation. In the case of process innovation, private property, research and development, and access to loans stimulate business innovation processes. Indian competitiveness could be positively stimulated if efforts are concentrated on positively encouraging the variables mentioned for external and internal determinants, in which all the income-generating activities and agents involved in the production process are articulated.

The literature regarding innovation drivers is usually based on variables taken from some theoretical approach and validated within a methodology. Some authors have included COVID-19 as a driver for innovations. In this paper, we address the pandemic from a different viewpoint: trying to find if innovation drivers for European countries are the same in pre- and post-pandemic years. The automated general-to-specific model selection algorithm—Autometrics—is used. The main potentially relevant drivers for which data were available for both years and two proxies of innovation (patents and the Summary Innovation Index) were considered. The final models provided by Autometrics allow for valid inference on retained innovation drivers since they have passed a plethora of diagnostic tests, ensuring congruency. The attractiveness of the research system is the most impactful driver on the index in both years but other drivers indeed differ. SMEs’ business process innovation and their cooperation networks matter only in 2022. We found crowding-out effects of public funding of R&D (in both years, for the index). Sustainability was a driver in both periods. The ranking of common drivers also changes. Non-R&D innovation expenditures, the second most relevant before COVID-19, concedes to digitalization. Surprisingly, when patents are the proxy, digitalization is retained before COVID-19, with the attractiveness of the research system replacing it afterwards. Explanations for our findings are suggested. The main implications of our findings for innovation policy seem to be the facilitating role that the government should have in fostering linkages between stakeholders and the capacity the government might have to improve the attractiveness of the research system. Policies based on the public funding of R&D appear ineffective for European countries.

Generational change and innovation are at the heart of the future success of a family business. Therefore, it is clear that the generational change of family firms should be considered from an innovation perspective. Despite this, there is no research in the literature that examines the importance of innovation in succession. In this article, the role of innovation in the succession process is examined by surveying 76 Hungarian family business owners and their potential successors. The aim of the article is to explore whether innovation plays a role in the life of the business and, if so, whether it can make succession more successful. In addition, whether the willingness of the successor to innovate is more important than the choice of successor within the family, and whether potential successors have innovative ambitions. Results include that family business owners who consider innovation important can be considered as partially conscious generational succession planners, as they are more likely to already have a potential successor than owners who do not consider innovation important. Overall, the family business owners surveyed do not consider it more important that the successor be a family member or that the successor have an innovative approach, but first and second generation owners have different views. Second-generation family business owners now place much less importance on having a successor from the family than founders, and all second-generation completers placed the highest value on the successor's willingness to innovate, while founders placed significantly lower value on this. Nevertheless, none of the owners surveyed had a potential successor outside the family. Finally, innovation plays an important role in the future goals of successors. They consider continuous improvement and innovation to be the most important goal after stable and profitable operation of the company and the realisation of their own career, and prefer to implement business process innovations rather than product innovations.

This study explores the complex relationship between innovation and carbon dioxide (CO2) emissions across the primary, secondary, and tertiary sectors within the 27 European Union (EU) member states over the period 2017–2023. Drawing on a comprehensive dataset and grounded in theoretical frameworks, the research investigates how different innovation indicators—including broadband penetration, digital skills, public and business R&D expenditure, ICT training, and SME-driven innovations—affect sectoral CO2 emissions. Using robust regression, the findings reveal a nuanced landscape: while ICT skills training, human resource mobility in science and technology, and SME business process innovations are associated with significant reductions in emissions, certain R&D investments and broadband penetration display positive correlations with emissions in specific service-oriented sectors. These results suggest that the environmental impacts of innovation are highly context-dependent and not uniformly positive. This study highlights the importance of strategically aligning innovation policies with sustainability objectives. Policymakers are encouraged to promote targeted digital training, support environmentally conscious R&D, and foster SME-led innovation practices. The results contribute to the growing discourse on sustainable innovation and provide actionable insights to advance the EU’s green transition.

Abstract The aim of this study is to hypothesize that eco-innovation is a determinant of competitive advantage for export performance in Indonesia. Descriptive qualitative approaches were used for this study. Data collection was carried out through interviews with seven exporters operating in Indonesia whose business activities were related to eco-innovation, namely either product eco-innovation or process eco-innovation. The data were manually processed and thematically analyzed to identify response patterns. Most previous research discusses innovation in products and business processes in general and is not related to eco-innovation. Then, other studies that discuss eco-innovation tend to link it to the company’s competitive advantage and do not discuss its effect on export business performance. This study focuses on how eco-innovation has affected competitive advantage in export businesses. The findings show that participants innovate both in terms of products and business processes, and there are two factors that encourage SMEs to implement environmentally friendly innovations, namely internal factors and external factors. SMEs identified environmentally beneficial resources by examining export destination country policies, validating them with customers, and mapping the results. As a result, SMEs use environmental capabilities to improve customer marketing communications, develop more effective pricing strategies, and strengthen their positions in global markets.