Integration of Eco-innovation Drivers and Their Role in Sustainable Competitive Advantage in SMEs: A Proposed Conceptual Model

Although the adoption of eco-innovation in SMEs has been covered in the sustainability literature, there remains a shortage of publications addressing the integration among internal and external eco-innovation drivers in SMEs. In addition, most of the previous studies have given intensive attention to examining the impact of eco-innovation on business performance, regardless of its impact on sustainable competitive advantage in SMEs. Hence, this paper proposes a conceptual model integrating the external institutional pressures into internal capabilities to conceptualise how these enabling factors affect eco-innovation and, in turn, achieve a sustainable competitive advantage in SMEs. This paper helps to conceptualise how eco-innovation practices can play an essential role in achieving a sustainable competitive advantage in SMEs. It also provides original insights into the interactions between the driving factors of eco-innovation. The conceptualised model is expected to be valuable to eco-innovation literature by developing an in-depth understanding of how the driving factors can be synergetic and the role of eco-innovation in SCA in SMEs.