Synergy in environmental compliance, innovation and export on SMEs' growth

Phu Nguyen-Van, Tuyen Tiet and Quoc Tran-Nam

No 2024-1, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: Although numerous studies examine the impacts of environmental compliance and innovation on a firm's economic performance, the role of export activities in this nexus has remained unanswered. In this study, we revisit the Porter hypothesis by investigating synergy strategies of dierent environmental and economic practices (i.e., environmental compliance, product innovation, process innovation and having export activities) on total factor productivity (TFP) of Vietnamese manufacturing SMEs. Our results suggest that while encouraging either product or process innovation is also essential in the environment-promoting policy, joint implementation of these two practices should be carefully considered by managers. Moreover, entering export markets positively impacts rms' productivity; complying with the domestic/local environmental standards could signicantly increase the chances for SMEs to enter the export markets

Keywords: Environmental compliance; Export; Product innovation; Process innovation; Productivity; SMEs (search for similar items in EconPapers)
JEL-codes: L25 M11 O12 Q55 Q56 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2024
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ene, nep-ent, nep-env, nep-sbm, nep-sea and nep-tra
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Working Paper: Synergy in environmental compliance, innovation and export on SMEs' growth (2024)
Working Paper: Synergy in environmental compliance, innovation and export on SMEs' growth (2024)
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