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Sustainability 2014, 6(10), 7412-7432; doi:10.3390/su6107412

Exploring the Impact of Complementary Assets on the Environmental Performance in Manufacturing SMEs

Korea Advanced Institute of Science and Technology, 291, Daehak-ro, Yuseong-gu, Daejeon 305-701, Korea
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Received: 18 July 2014 / Revised: 30 September 2014 / Accepted: 20 October 2014 / Published: 23 October 2014
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
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Abstract

As the impact of small and medium-sized enterprises (SMEs) on the environment increases, there is a need for effective environmental policies to sustain their development. Under this condition, SMEs implement innovation to meet environmental regulations and to achieve environmental competitiveness in sustainability. We examine the impact of environmental innovation on labor productivity in SME manufacturers. The literature shows that complementary assets help SMEs to increase their performance in environmental innovation. Therefore, we study the interactive effects of the SMEs’ business-group affiliation and the listing status on the relationship between environmental innovation and labor productivity. We add these interaction terms to multivariate regressions by using the 2010 Korea Innovation Survey. The results show that SMEs are able to use environmental innovation as a business strategy for green growth with improved labor productivity. Also, the results highlight that the business-group affiliation and the listing status as the complementary assets positively moderate the performance of the environmental innovation of the SMEs. View Full-Text
Keywords: environmental innovation; complementary assets; environmental performance; manufacturing SMEs environmental innovation; complementary assets; environmental performance; manufacturing SMEs
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Woo, C.; Chung, Y.; Chun, D.; Seo, H. Exploring the Impact of Complementary Assets on the Environmental Performance in Manufacturing SMEs. Sustainability 2014, 6, 7412-7432.

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