Green innovation and Sustainable Development Goals in SMEs: the moderating role of government incentives

Abstract

Purpose

The aim of this research is to understand how government incentives (financial and non-financial) influence the relationship between green innovation and Sustainable Development Goals (SDGs) in SMEs.

Design/methodology/approach

To contribute to the literature, this research uses empirical evidence of 204 Pakistani small and medium-sized enterprises (SMEs) and tests the moderating role of government support between green innovation and SDGs.

Findings

The findings indicate that green innovation has a significant influence on SDGs, community development and environmental activities. The government support significantly strengthens the relationship between green innovation and environmental practices, while it does not moderate the path between green innovation and community development.

Practical implications

The research recommends SMEs focus on the adoption of green innovation and green technology to protect the environment and facilitate the community. Moreover, the research advises the government to assist SMEs financially and nonfinancially, so they will in turn help in the attainment of SDGs.

Originality/value

This research is the first attempt to assess the importance of green innovation in SDGs with a moderating role of government incentives in emerging SMEs. It provides several useful implications for policymaking.

Citation

Ullah, R., Ahmad, H., Rehman, F.U. and Fawad, A. (2023), "Green innovation and Sustainable Development Goals in SMEs: the moderating role of government incentives", Journal of Economic and Administrative Sciences, Vol. 39 No. 4, pp. 830-846. https://doi.org/10.1108/JEAS-07-2021-0122