This research study examines the direct influence of customer preference and the potential moderating influence of laws and green purchasing on eco-design of products/services in small and medium-sized enterprises (SMEs). Also studied is the relationship between these variables and environmental and economic performance in SMEs. The analysis uses theoretical underpinning of stakeholder and neo-institutional theories, and survey data collected from a sample of SMEs. Regression path analysis is applied, bootstrapped with .95 CI (Bias Corrected and Accelerated) and 2,000 samples on all regressions. Significant relationships were found between customer preference and eco-design, moderated by impact of laws, and between eco-design and environmental and economic performance. Green purchasing was found to have no moderating effect on adoption of eco-design. Managerial implications are indicated and discussed.
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Khoja et al. (2024) studied this question.
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