Mediating Factors Influencing the Adoption of Green Technology by SMEs for Sustainable Performance: A Systematic Literature Review
DOI:
https://doi.org/10.37150/jimat.v6i1.3603Keywords:
Adoption of Eco-Friendly Technology, Sustainable Performance, Financial Viability, Environmental Sustainability, SMEsAbstract
This research aims to elucidate the background and theoretical framework underlying the adoption of green technology by MSMEs to achieve sustainable performance. This study employs the PRISMA systematic review methodology to analyze 40 empirical publications regarding the mediating factors influencing green technology adoption by MSMEs in achieving sustainable performance, spanning from 2017 to 2024 and encompassing diverse nations. A concise summary and recommendations for future research goals are provided for each applicable theory. This study indicates that, despite extensive prior research, the majority of studies examine sustainable performance through factors that mediate the adoption of green technologies. Additionally, the employed theories include the Resource-Based View (RBV), Technology Acceptance Model (TAM), Innovation Theory, and Sustainability Theory. This research aids policymakers in formulating policies and incentives that promote the use of green technology by MSMEs. For MSMEs, these findings offer pragmatic direction on enhancing green innovation capabilities and leveraging green technology to attain sustainable performance.
References
Abrokwah-Larbi, K. (2024). The impact of customer-focus on the performance of business organizations: evidence from SMEs in an emerging West African economy. African Journal of Economic and Management Studies, 15(1), 31–59. https://doi.org/10.1108/AJEMS-04-2022-0167
Adela, V., Agyei, S. K., Frimpong, S., Awisome, D. B., Bossman, A., Abosompim, R. O., Benchie, J. K. O., & Ahmed, A. M. A. (2024). Bookkeeping practices and SME performance: The intervening role of owners’ accounting skills. Heliyon, 10(1). https://doi.org/10.1016/j.heliyon.2023.e23911
Adomako, S., & Ahsan, M. (2022). Entrepreneurial passion and SMEs’ performance: Moderating effects of financial resource availability and resource flexibility. Journal of Business Research, 144, 122–135. https://doi.org/10.1016/j.jbusres.2022.02.002
Alqershi, N., Mokhtar, S. S. M., & Abas, Z. Bin. (2020). Innovative CRM and performance of SMEs: The moderating role of relational capital. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–18. https://doi.org/10.3390/joitmc6040155
Alraja, M. N., Khan, S. F., Khashab, B., & Aldaas, R. (2020). Does Facebook Commerce Enhance SMEs Performance? A Structural Equation Analysis of Omani SMEs. SAGE Open, 10(1). https://doi.org/10.1177/2158244019900186
Alshuaibi, M. S. I., Alhebri, A., Khan, S. N., & Sheikh, A. A. (2024). Big data analytics, GHRM practices, and green digital learning paving the way towards green innovation and sustainable firm performance. Journal of Open Innovation: Technology, Market, and Complexity, 10(4), 100396. https://doi.org/10.1016/j.joitmc.2024.100396
Anjaningrum, W. D., Azizah, N., & Suryadi, N. (2024). Spurring SMEs’ performance through business intelligence, organizational and network learning, customer value anticipation, and innovation - Empirical evidence of the creative economy sector in East Java, Indonesia. Heliyon, 10(7). https://doi.org/10.1016/j.heliyon.2024.e27998
Audretsch, D. B., Belitski, M., Caiazza, R., & Phan, P. (2023). Collaboration strategies and SME innovation performance. Journal of Business Research, 164. https://doi.org/10.1016/j.jbusres.2023.114018
Belitski, M., & Mariani, M. (2023). The effect of knowledge collaboration on business model reconfiguration. European Management Journal, 41(2), 223–235. https://doi.org/10.1016/j.emj.2022.02.006
Bhatti, S. H., Rashid, M., Arslan, A., Tarba, S., & Liu, Y. (2023). Servitized SMEs’ performance and the influences of sustainable procurement, packaging, and distribution: The mediating role of eco-innovation. Technovation, 127. https://doi.org/10.1016/j.technovation.2023.102831
Chaithanapat, P., Punnakitikashem, P., Khin Khin Oo, N. C., & Rakthin, S. (2022). Relationships among knowledge-oriented leadership, customer knowledge management, innovation quality and firm performance in SMEs. Journal of Innovation and Knowledge, 7(1). https://doi.org/10.1016/j.jik.2022.100162
Chourasiya, R., Pandey, S., Malviya, R. K., & Pujara, A. A. (2024). Towards sustainable success: A framework for assessing performance of sustainable manufacturing adoption in Indian textile industry. Sustainable Futures, 7. https://doi.org/10.1016/j.sftr.2024.100216
Chugunov, I., Makohon, V., Vatulov, A., & Markuts, Y. (2020). General government revenue in the system of fiscal regulation. Investment Management and Financial Innovations, 17(1), 134–142. https://doi.org/10.21511/imfi.17(1).2020.12
Danial, R. D. M., Alhidayatullah, A., Amal, M. K., & Aziz, M. A. (2024). Product Innovation of Smes in Vuca Era. SIBATIK JOURNAL: Jurnal Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi, Dan Pendidikan, 3(8), 1067-1082.
Deku, W. A., Wang, J., & Preko, A. K. (2024). Digital marketing and small and medium-sized enterprises’ business performance in emerging markets. Asia Pacific Journal of Innovation and Entrepreneurship, 18(3), 251–269. https://doi.org/10.1108/apjie-07-2022-0069
Drobetz, W., El Ghoul, S., Guedhami, O., Hackmann, J. P., & Momtaz, P. P. (2024). Entrepreneurial finance and sustainability: Do institutional investors impact the ESG performance of SMEs? Journal of Business Venturing Insights, 22, e00498. https://doi.org/10.1016/j.jbvi.2024.e00498
Greco, A., Eikelenboom, M., & Long, T. B. (2021). Innovating for sustainability through collaborative innovation contests. Journal of Cleaner Production, 311. https://doi.org/10.1016/j.jclepro.2021.127628
Gutiérrez-Broncano, S., Linuesa-Langreo, J., Rubio-Andrés, M., & Sastre-Castillo, M. Á. (2024). Can hybrid strategy improve SME performance? The role of innovation and adaptive capacity. European Journal of Innovation Management, 27(9), 173–197. https://doi.org/10.1108/EJIM-07-2023-0566
Hariyono, A., & Narsa, I. M. (2024). The value of intellectual capital in improving MSMEs’ competitiveness, financial performance, and business sustainability. Cogent Economics and Finance, 12(1). https://doi.org/10.1080/23322039.2024.2325834
Hasani, T., Rezania, D., Levallet, N., O’Reilly, N., & Mohammadi, M. (2023). Privacy enhancing technology adoption and its impact on SMEs’ performance. International Journal of Engineering Business Management, 15. https://doi.org/10.1177/18479790231172874
Hidayat-ur-Rehman, I., & Alsolamy, M. (2023). A SEM-ANN analysis to examine sustainable performance in SMEs: The moderating role of transformational leadership. Journal of Open Innovation: Technology, Market, and Complexity, 9(4). https://doi.org/10.1016/j.joitmc.2023.100166
Hsieh, W. L., Ganotakis, P., Kafouros, M., & Wang, C. (2018). Foreign and Domestic Collaboration, Product Innovation Novelty, and Firm Growth. Journal of Product Innovation Management, 35(4), 652–672. https://doi.org/10.1111/jpim.12435
Hussain, A., Shahzad, A., & Hassan, R. (2020). Organizational and environmental factors with the mediating role of e-commerce and SME performance. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–21. https://doi.org/10.3390/joitmc6040196
Jing, H., Zhang, Y., & Ma, J. (2023). Influence of digital ambidextrous capabilities on SMEs’ transformation performance: The mediating effect of business model innovation. Heliyon, 9(11). https://doi.org/10.1016/j.heliyon.2023.e21020
Khan, S. A. R., Tahir, M. S., & Sheikh, A. A. (2024). Sustainable performance in SMEs using big data analytics for closed-loop supply chains and reverse omnichannel. Heliyon, 10(16). https://doi.org/10.1016/j.heliyon.2024.e36237
Konopik, J., Jahn, C., Schuster, T., Hoßbach, N., & Pflaum, A. (2022). Mastering the digital transformation through organizational capabilities: A conceptual framework. Digital Business, 2(2). https://doi.org/10.1016/j.digbus.2021.100019
Kusa, R., Duda, J., & Suder, M. (2021). Explaining SME performance with fsQCA: The role of entrepreneurial orientation, entrepreneur motivation, and opportunity perception. Journal of Innovation and Knowledge, 6(4), 234–245. https://doi.org/10.1016/j.jik.2021.06.001
Le, D. V., Le, H. T. T., Pham, T. T., & Vo, L. Van. (2023). Innovation and SMEs performance: evidence from Vietnam. Applied Economic Analysis, 31(92), 90–108. https://doi.org/10.1108/AEA-04-2022-0121
Liu, Z., Jiao, C., Zhang, Y., & Wang, J. (2023). Linking Supply Chain Collaboration, Collaborative Advantage, and Firm Performance in China: The Moderating Role of Government Subsidies. Sustainability, 15(21), 15329. https://doi.org/10.3390/su152115329
Lutfi, A., Al-Hiyari, A., Elshaer, I. A., Alrawad, M., & Almaiah, M. A. (2024). Green environmental management system and environmental performance: Results from PLS-SEM and fsQCA. Sustainable Futures, 8. https://doi.org/10.1016/j.sftr.2024.100276
Mallett, O., Wapshott, R., & Vorley, T. (2019). How Do Regulations Affect SMEs? A Review of the Qualitative Evidence and a Research Agenda. International Journal of Management Reviews, 21(3), 294–316. https://doi.org/10.1111/ijmr.12191
Menne, F., Surya, B., Yusuf, M., Suriani, S., Ruslan, M., & Iskandar, I. (2022). Optimizing the Financial Performance of SMEs Based on Sharia Economy: Perspective of Economic Business Sustainability and Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(1). https://doi.org/10.3390/joitmc8010018
Merín-Rodrigáñez, J., Dasí, À., & Alegre, J. (2024). Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation. Technovation, 134. https://doi.org/10.1016/j.technovation.2024.103027
Nair, J., Chellasamy, A., & Singh, B. N. B. (2019). Readiness factors for information technology adoption in SMEs: testing an exploratory model in an Indian context. Journal of Asia Business Studies, 13(4), 694–718. https://doi.org/10.1108/JABS-09-2018-0254
Ngo, Q. H. (2023). The Impact of Entrepreneurial Orientation on SMEs’ Performance in a Transitional Economy: The Mediating Role of Differentiation Advantages and Innovation Capability. SAGE Open, 13(4). https://doi.org/10.1177/21582440231203035
Nguyen, P. V., Huynh, H. T. N., Lam, L. N. H., Le, T. B., & Nguyen, N. H. X. (2021). The impact of entrepreneurial leadership on SMEs’ performance: the mediating effects of organizational factors. Heliyon, 7(6). https://doi.org/10.1016/j.heliyon.2021.e07326
Oduro, S. (2024). Eco-innovation and SMEs’ sustainable performance: a meta-analysis. In European Journal of Innovation Management (Vol. 27, Issue 9, pp. 248–279). Emerald Publishing. https://doi.org/10.1108/EJIM-11-2023-0961
Oppon, E., Koh, S. C. L., & Eufrasio, R. (2024). Sustainability performance of enhanced weathering across countries: A triple bottom line approach. Energy Economics, 136. https://doi.org/10.1016/j.eneco.2024.107722
Orden-Cruz, C., Paule-Vianez, J., Sánchez-Escobedo, M. C., & Moutinho, V. (2024). EPU and SMEs’ financial performance: Industry vs. service sector. Journal of Open Innovation: Technology, Market, and Complexity, 10(3). https://doi.org/10.1016/j.joitmc.2024.100320
Ougier, S., Bach, P., Le Loc’h, F., Aubin, J., & Gascuel, D. (2024). When economy meets ecology, is it truly conflicted? A dashboard approach to assess the sustainability performance of European tropical tuna purse seine fisheries. Science of the Total Environment, 943. https://doi.org/10.1016/j.scitotenv.2024.173842
Pascucci, F., Domenichelli, O., Peruffo, E., & Gregori, G. L. (2022). Family ownership and the export performance of SMEs: the moderating role of financial constraints and flexibility. Journal of Small Business and Enterprise Development, 29(4), 602–626. https://doi.org/10.1108/JSBED-03-2021-0113
Pilav – Velic, A., Jahic, H., & Krndzija, L. (2024). Firm resilience as a moderating force for SMEs’ innovation performance: Evidence from an emerging economy perspective. Regional Science Policy and Practice, 16(8). https://doi.org/10.1016/j.rspp.2024.100033
Prajapati, C., Goswami, I., Kumar, V., Singh, A., Mahlawat, S., & Singh, S. (2024). Conceptualization and theorizing process of innovation metrics for green business practices. Green Technologies and Sustainability, 2(3), 100110. https://doi.org/10.1016/j.grets.2024.100110
Qalati, S. A., Ostic, D., Sulaiman, M. A. B. A., Gopang, A. A., & Khan, A. (2022). Social Media and SMEs’ Performance in Developing Countries: Effects of Technological-Organizational-Environmental Factors on the Adoption of Social Media. SAGE Open, 12(2). https://doi.org/10.1177/21582440221094594
Rhee, M., & Stephens, A. R. A. E. (2020). INNOVATION-ORIENTATED TECHNOLOGY ASSIMILATION STRATEGY and Korean SMES’ ENHANCING INNOVATION CAPABILITY, COMPETITIVE ADVANTAGE and FIRM PERFORMANCE. International Journal of Innovation Management, 24(6). https://doi.org/10.1142/S1363919620500814
Rojas-Ospina, A., Zuñiga-Collazos, A., & Castillo-Palacio, M. (2024). Factors influencing environmental sustainability performance: A study applied to coffee crops in Colombia. Journal of Open Innovation: Technology, Market, and Complexity, 10(3). https://doi.org/10.1016/j.joitmc.2024.100361
Rumanti, A. A., Rizana, A. F., & Achmad, F. (2023). Exploring the role of organizational creativity and open innovation in enhancing SMEs performance. Journal of Open Innovation: Technology, Market, and Complexity, 9(2). https://doi.org/10.1016/j.joitmc.2023.100045
Sadeghi, A., Aliasghar, O., & Bouguerra, A. (2023). Unpacking the relationship between post-entry speed of internationalization and export performance of SMEs: A capability-building perspective. Journal of International Management, 29(1). https://doi.org/10.1016/j.intman.2022.100982
Sarfo, C., Zhang, J. A., O’Kane, C., & O’Kane, P. (2024). Perceived value of microfinance and SME performance: The role of exploratory innovation. International Journal of Innovation Studies, 8(2), 172–185. https://doi.org/10.1016/j.ijis.2024.02.003
Singh, R., Chandrashekar, D., Subrahmanya Mungila Hillemane, B., Sukumar, A., & Jafari-Sadeghi, V. (2022). Network cooperation and economic performance of SMEs: Direct and mediating impacts of innovation and internationalisation. Journal of Business Research, 148, 116–130. https://doi.org/10.1016/j.jbusres.2022.04.032
Sobar, A., Permadi, I., Alhidayatullah, A., & Fathussyaadah, E. (2023). Peningkatan kualitas produk dan layanan UMKM untuk meningkatkan daya saing. JMM (Jurnal Masyarakat Mandiri), 7(4), 3782-3793.
Somohano-Rodríguez, F. M., & Madrid-Guijarro, A. (2022). Do industry 4.0 technologies improve Cantabrian manufacturing smes performance? The role played by industry competition. Technology in Society, 70. https://doi.org/10.1016/j.techsoc.2022.102019
Subhani, W., Abdul Latiff, A. S., & Wahab, S. A. (2023). Effort Expectancy, Task Technology Fit, and ERP Adoption Behavior; Moderating Effect of Trust in Technology: Evidence from SMEs of Pakistan. In Pakistan Journal of Commerce and Social Sciences (Vol. 2023, Issue 3).
Suryawan, I. W. K., & Lee, C.-H. (2024). Exploring citizens’ cluster attitudes and importance-performance policy for adopting sustainable waste management practices. Waste Management Bulletin, 2(3), 204–215. https://doi.org/10.1016/j.wmb.2024.07.011
Tariq, A., Sumbal, M. S. U. K., Dabić, M., Raziq, M. M., & Torkkeli, M. (2024). Interlinking networking capabilities, knowledge worker productivity, and digital innovation: a critical nexus for sustainable performance in small and medium enterprises. Journal of Knowledge Management, 28(11), 179–198. https://doi.org/10.1108/JKM-09-2023-0788
Tolstoy, D., Nordman, E. R., & Vu, U. (2022). The indirect effect of online marketing capabilities on the international performance of e-commerce SMEs. International Business Review, 31(3). https://doi.org/10.1016/j.ibusrev.2021.101946
Trisnawati, T., Alhidayatullah, A., & Antony, A. (2024). Entrepreneurship and Digital Orientation in Enhancing SME Performance Mediated by Marketing Capabilities. International Journal of Economics, Management and Accounting (IJEMA), 2(3), 455-470.
Utaminingsih, A., Priyanto, S. H., Ihalauw, J. J. O. I., & Kusuma, L. (2020). Green Business Behaviour, Green Technologies, and Sustainability in SMEs. In International Journal of Economics and Business Administration: Vol. VIII (Issue 1).
Varriale, V., Cammarano, A., Michelino, F., & Caputo, M. (2024). Exploring the environmental, economic, and social implications of metaverse adoption in business and management. European Management Journal. https://doi.org/10.1016/j.emj.2024.09.007
Wang, G., Mansor, Z. D., & Leong, Y. C. (2024). Linking digital leadership and employee digital performance in SMEs in China: The chain-mediating role of high-involvement human resource management practice and employee dynamic capability. Heliyon, 10(16). https://doi.org/10.1016/j.heliyon.2024.e36026
Yousaf, A., Mishra, A., & Gupta, A. (2021). ‘From technology adoption to consumption’: Effect of pre-adoption expectations from fitness applications on usage satisfaction, continual usage, and health satisfaction. Journal of Retailing and Consumer Services, 62. https://doi.org/10.1016/j.jretconser.2021.102655
Zamani, S. Z. (2022). Small and Medium Enterprises (SMEs) facing an evolving technological era: a systematic literature review on the adoption of technologies in SMEs. European Journal of Innovation Management, 25(6), 735–757. https://doi.org/10.1108/EJIM-07-2021-0360
Zelenika, I., & Pearce, J. M. (2014). Innovation through collaboration: scaling up solutions for sustainable development. Development and Sustainability, 16(6). https://doi.org/10.1007/s10668
Zhang, H. (2022). Does combining different types of innovation always improve SME performance? An analysis of innovation complementarity. Journal of Innovation and Knowledge, 7(3). https://doi.org/10.1016/j.jik.2022.100192
