The study investigates how different sources of external knowledge impact the eco-innovation efforts of SMEs in developing economies. First, the study shows that eco-innovation, which involves creating environmentally friendly products and processes, is essential for improving the competitiveness and productivity of SMEs. These innovations help firms in developing economies overcome resource limitations and improve their market positions.
More so, the paper highlights the crucial role of eco-innovation in promoting sustainability. It emphasizes that eco-innovations help firms reduce their environmental impact by minimizing the use of natural resources, promoting recycling, and reducing waste and emissions. This aligns with global sustainability goals, such as the UN Sustainable Development Goals (SDGs).
Additionally, the study underscores the importance of eco-innovation in combating climate change. By adopting eco-friendly technologies and processes, SMEs can significantly reduce their carbon footprints. The study finds that external knowledge from suppliers, customers, competitors, and scientific organizations plays a vital role in fostering these eco-innovations.
The study concludes that external knowledge is crucial for the eco-innovation efforts of SMEs in developing economies. By leveraging knowledge from various external sources, these firms can overcome resource constraints, improve their sustainability practices, and contribute to economic growth and climate change mitigation.
