Institutional Context and Energy-Efficient Innovation: Are SMEs Flying Under the Radar?

49 Pages Posted: 20 Nov 2014 Last revised: 2 May 2018

See all articles by Boris Mrkajic

Boris Mrkajic

Politecnico di Milano

Luca Grilli

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering

Paola Garrone

Politecnico di Milano

Date Written: November 15, 2014

Abstract

Relying on the institutional theory, a conceptual framework is developed, which hypothesises that institutional features are creating an environment that significantly influences energy-efficient innovation (EEI) activities at a firm level. Economic, regulatory and social features are argued to support firms, but also exert pressures on them to introduce EEI. Furthermore, the analysis is extended to study how the institutional context is moderated by one of the most prominent features of a firm, i.e. its size. In this way, we contribute both to the literature examining the role of the institutional context in shaping economic activities, and the scientific and policy discourse on energy-efficiency in small and medium enterprises (SMEs) and large incumbent enterprises (LEs). The developed hypotheses are tested in a cross-country setting, using a cross-sectional sample of 9 European countries based on Community Innovation Survey (CIS) microdata, complemented with country-level information from various sources. The achieved results support the main hypothesis that institutional characteristics foster EEI. Moreover, different institutional dimensions are found to be working differently depending on the firm size. Compared to LEs, SMEs are found to be more sensitive to regulatory rather than economic and social institutional characteristics. We offer several interpretations for these somewhat controversial and thought-provoking results. Based on these, we propose implications for policy interventions that could enhance the quality of energy-efficient innovation activities, as well as insightful findings to managers of both small and large corporations.

Keywords: Energy-efficient innovation, institutional theory, market-based incentives, regulatory pressures, stakeholder pressures

JEL Classification: Q40, Q41, Q48, 031

Suggested Citation

Mrkajic, Boris and Grilli, Luca and Garrone, Paola, Institutional Context and Energy-Efficient Innovation: Are SMEs Flying Under the Radar? (November 15, 2014). Available at SSRN: https://ssrn.com/abstract=2527940 or http://dx.doi.org/10.2139/ssrn.2527940

Boris Mrkajic (Contact Author)

Politecnico di Milano ( email )

Via Raffaele Lambruschini, 4B
Milan, 20156
Italy

Luca Grilli

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering ( email )

Via Lambruschini 4C - building 26/A
Milano, 20156
Italy

Paola Garrone

Politecnico di Milano ( email )

piazza Leonardo da Vinci 32
Milano, 20133
Italy
+39-02-23992742 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
59
Abstract Views
505
rank
367,616
PlumX Metrics