E03-S02 - Company Location, Business Environment and Digital Maturity as Drivers of Environmental Innovation in Business

The 3rd episode of the 2nd season of podNECE presents a study that investigates the primary drivers of environmental innovation in businesses, focusing on how geographical location, business environment, and digital maturity influence sustainable practices. By analyzing data from over 16,000 firms across 39 countries, the authors utilize machine learning algorithms to identify complex patterns that traditional statistical methods often overlook. The findings reveal that digital maturity is the most significant internal factor for adopting eco-innovations, while firms in rural areas show a surprisingly high propensity for environmental responsibility. Furthermore, company size serves as a critical moderator, amplifying the benefits of a favorable business environment and advanced digital capabilities. The study concludes that integrating digital transformation with strategic sustainability is essential for enhancing corporate competitiveness and meeting global development goals. Highlighting the importance of context-specific policies, the research provides a robust framework for leaders to optimize organizational characteristics for a greener future.podNECE is a podcast by NECE - Research Centre for Business Sciences, University of Beira Interior, Portugal.