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Enhancing Green Innovation in Small and Medium Enterprises: the strategic role of banking proximity

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Sustainability’s growing importance drives companies to align strategies with social responsibility (CSR) and stakeholder concerns. Green Innovation (GI) reduces environmental impact but requires substantial costs, often financed by banks. Small and Medium Enterprises (SMEs) face challenges in accessing its benefits. Grounded in Institutional Theory, CSR, and Stakeholder Theory, this study explores how banking proximity fosters GI through trust, tailored financial solutions, technical support, and reduced knowledge barriers. Based on interview findings, results show that proximity enhances SME-bank relationships, driving sustainable transitions. The study underscores the need for long-term collaboration and its implications for banks, SMEs, and regulators in advancing GI.

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Banking Green Innovation Proximity Small and Medium Enterprises Sustainability Institutional Theory Corporate Social Responsibility Stakeholder Theory

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Licença CC