Sustainable development through eco-innovation: A focus on small and medium enterprises in Colombia.

Abstract

This study examines the impact of eco-innovation on the economic, social, and environmental performance of small and medium enterprises (SMEs) in Colombia. SMEs are pivotal to Colombia's economic landscape, contributing significantly to job creation, economic growth, and regional development. The research utilizes structural equation modeling (SEM) to analyze data collected from 568 SMEs through an electronic survey. The findings indicate that eco-innovation positively influences both environmental and economic-social performance. Enhanced environmental performance, driven by eco-innovation, is associated with improved resource efficiency, reduced emissions, and waste management. Moreover, economic and social performance, measured through profitability, product quality, and job satisfaction, also benefits from eco-innovative practices. These results underscore the importance of eco-innovation in promoting sustainable development within the SME sector. The study advocates for further large-scale investigations to validate these findings and to explore the broader implications of eco-innovation in diverse economic contexts.