Breaking down barriers: The adoption of eco-innovation by SMEs and the influence of personality traits

Abstract

The role played by leaders in the adoption of eco-innovations (EIs) by small and medium enterprises (SMEs) is crucial, but there is still little evidence regarding the influence of leaders on EIs. Despite the extensive literature on EI, studies that empirically evaluate the association between the role of SME leaders (CEOs, top managers, and board members) on the delimitation of the barriers to EI are lacking. The relationship between combinations of leader personality traits and the adoption of EI from a sensemaking perspective is examined to address this research gap. In addition, fsQCA analysis was applied. The responses of 40 SME leaders revealed that configurations involving barriers and personal traits have led to several solutions in which conscientiousness, openness, and either the presence or negation of neuroticism by SME managers were relevant. Moreover, the offset between financial barriers and the lack of public funding for EIs emerges in all eco-innovative success solutions. These results show that different combinations of personality traits interact with different EI barriers. Therefore, the obstacles to EI depend on the interpretations of the leader rather than being one-size-fits-all. Based on sensemaking theory, as taken from organizational studies and the literature on microfoundations, these findings enhance our understanding of the influence of individual-level psychological traits on EI adoption. Furthermore, practical implications are presented for SMEs with the goal of adopting sustainable innovative strategies.