Green innovation and Sustainable Development Goals in SMEs: the moderating role of government incentives

PurposeThe aim of this research is to understand how government incentives (financial and non-financial) influence the relationship between green innovation and Sustainable Development Goals (SDGs) in SMEs.Design/methodology/approachTo contribute to the literature, this research uses empirical evide...

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Bibliographic Details
Published in:Journal of economic and administrative sciences 2023-11, Vol.39 (4), p.830-846
Main Authors: Ullah, Rizwan, Habib, Ahmad, Fazal Ur Rehman, Arshad Fawad
Format: Article
Language:English
Subjects:
Clean technology
Community development
Economic growth
Economic theory
Emerging markets
Energy consumption
Environmental management
Environmental policy
Environmental regulations
Expenditures
Government
Government subsidies
Incentives
Influence
Innovations
Pollution
R&D
Research & development
Small & medium sized enterprises-SME
Sustainable development
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Summary:PurposeThe aim of this research is to understand how government incentives (financial and non-financial) influence the relationship between green innovation and Sustainable Development Goals (SDGs) in SMEs.Design/methodology/approachTo contribute to the literature, this research uses empirical evidence of 204 Pakistani small and medium-sized enterprises (SMEs) and tests the moderating role of government support between green innovation and SDGs.FindingsThe findings indicate that green innovation has a significant influence on SDGs, community development and environmental activities. The government support significantly strengthens the relationship between green innovation and environmental practices, while it does not moderate the path between green innovation and community development.Practical implicationsThe research recommends SMEs focus on the adoption of green innovation and green technology to protect the environment and facilitate the community. Moreover, the research advises the government to assist SMEs financially and nonfinancially, so they will in turn help in the attainment of SDGs.Originality/valueThis research is the first attempt to assess the importance of green innovation in SDGs with a moderating role of government incentives in emerging SMEs. It provides several useful implications for policymaking.
ISSN:1026-4116
2054-6246
DOI:10.1108/JEAS-07-2021-0122