The role of CSR oriented organisational culture in eco-innovation practices

Owing to its devastating impacts, climate change has emerged as one of the major challenges facing human and the ecosystems. Considering the call for urgent action in carbon emission reductions, eco-innovation practices have gained more momentum in the business context. Though eco-innovation appears to be the possible climate change mitigation strategy, the discussion and research on eco-innovation practices remain scarce in the context of SMEs, especially from the perspective of emerging economies. Hence, this research aims to examine the effect of stakeholder pressures on eco-innovation practices among the Malaysian manufacturing SMEs using Structural Equation Modelling. Based on the findings of 100 SMEs, it is evidenced that SMEs engaged in eco-innovation practices due to stakeholder pressures, and CSR oriented organisational culture is important, as it mediates the relationship between stakeholder pressure and eco-innovation practice. These findings are decisive to policy makers and SMEs towards a better understanding of the eco-innovation practices.