Exploring antecedents of innovations for small‐ and medium‐sized enterprises' environmental sustainability: An interpretative framework

Abstract The need to pursue sustainable development has become a central topic in Western countries due to citizens' greater sensitivity to improving environmental and social conditions. Companies can reach this objective more easily through green innovations, which are now considered a strategic opportunity that simultaneously allows for adherence to sustainable development criteria and the pursuit of competitive advantages. Scholars have identified the determinants that encourage companies to adopt green innovations, but the outcomes of their investigations thus far have often been ambiguous and contradictory. Our paper proposes an interpretative framework for addressing such inconsistencies. Using the partial least squares structural equation modelling (PLS‐SEM) methodology, we validate this framework on a sample of small‐ and medium‐sized enterprises (SMEs) and show that SMEs' choices are influenced by cultural elements and stimulated by the prospect of obtaining economic advantages over competitors. SMEs also pay close attention to stakeholder solicitations, while public administration does not affect their eco‐innovating choices. The results have policy implications for executives and insiders.