AN OVERVIEW OF SUSTAINABLE INNOVATION IN SMALL AND MEDIUM-SIZED ENTERPRISES: LITERATURE REVIEW AND MAIN CHALLENGES

Abstract

The debate on eco-innovation, although recent, is gaining relevance in the practical context of business and academia. The purpose of this research is to identify the characteristics and determinants of eco-innovation in SMEs from a systematic review of the literature. After reviewing the literature on eco-innovation in databases, it was possible to identify a list of relevant aspects on eco-innovation in the field of SMEs. Some of the main conclusions point to the need to contemplate in eco-innovation projects the three dimensions Of sustainability: economic, social, and environmental; The lack of neutrality in regulation and policies, which prioritises large companies to the detriment of SMEs; Specific actions for SMEs, technological advice, and awareness-raising, and training programs should be taken to improve cooperation with external stakeholders. Among the main barriers were the lack of resources (capital, knowledge, and skills), the focus of short-term management and the difficulty in radically innovating. Finally, the determinants and critical factors are associated with the innovative behaviour of SMEs in using networks to overcome their shortcomings, the role of the owner in driving innovation and its orientation towards sustainability within the enterprise, the long-term orientation of firm and, above all, the need for greater investment in innovation.