Eco‐innovation and business performance: the moderating effects of environmental orientation and resource commitment in green‐oriented <scp>SME</scp>s

Abstract

Drawing on the eco‐innovation and resource‐based view, this research attempts to contribute to the eco‐innovation‐performance debate by examining the effects of eco‐innovation on business performance. In particular, we propose that the eco‐innovation–performance relationship is contingent on environmental orientation and resources commitment. The analysis of 83 green‐oriented SMEs in New Zealand suggests that eco‐innovation has a positive effect on business performance. More interestingly, the findings show although environmental orientation does not directly influence business performance, it enhances the positive effect of eco‐innovation on business performance. The results further suggest that green‐oriented firms will reap more performance benefit of eco‐innovation when they commit more organizational resources.