Leveraging Sustainable Innovation to Achieve Carbon Emission Monitoring and Energy Management among SMEs in Africa: A Probit Regression Evidence

Abdulkadri Toyin Alabi () and Saheed Olanrewaju Issa
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Abdulkadri Toyin Alabi: Kwara State University, School of Business and Governance
Saheed Olanrewaju Issa: Universiti Putra Malaysia, School of Business and Economics

Chapter Chapter 10 in Vulnerability and the Future of Small Business in Industry 5.0, 2026, pp 201-229 from Springer

Abstract: Abstract As the global issue surrounding climate change intensifies, businesses face heightened, pressure, competition, and rapidly changing market dynamics, making innovation a critical factor for survival. On this premise, this study investigates the relationship between sustainable innovation and environmental management practices—specifically carbon emission monitoring and energy management among small and medium-sized enterprises (SMEs) in Africa. Utilizing data from the 2023 World Bank Enterprise Survey, the analysis employs probit regression to assess how sustainable innovation and other various factors influence these sustainability practices. The findings reveal that sustainable innovation significantly enhances the likelihood of adopting both carbon monitoring and energy management practices, with marginal effects indicating a 2.5% increase in carbon monitoring and a 7.03% increase in energy management for each unit increase in the innovation index. Other included variables, including access to finance, managerial experience, and foreign ownership, also demonstrate significant effects, highlighting the complex interplay of resources and contextual factors. It is recommended that policies are formulated to enhance sustainable innovative strategies which can foster carbon emission monitoring and energy management among SMEs in Africa. Overall, this study contributes to the growing literature on sustainable practices in developing economies and provides actionable insights for policymakers aiming to promote environmental stewardship.

Keywords: Environmental Management Practices; Innovation; Carbon Emission Monitoring; Energy Management; Small and Medium-Sized Enterprises (SMEs) (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-98431-0_10

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DOI: 10.1007/978-3-031-98431-0_10

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