The use and drivers of organisational eco-innovation in European SMEs

European SMEs are key contributors to economic growth and contamination. Driving eco-innovation (EI) within SMEs is crucial for achieving SDG goals, such as clean energy, economic growth, Industry & Innovation. This study examines the relationship between eco-innovation and organisational innovation among SMEs in Europe and differentiates between the determinants for SMEs and large enterprises. We employ binary logistic regression models with maximum likelihood applied to Eurostat’s CIS database categorised by company size. We analyse 8.094 companies spanning nine countries, focusing on environmental innovation activities by innovation type. Innovation in work responsibility and decision-making is the most conducive form of EI, with a significant effect observed among SMEs higher than large corporations. There are clear differences in drivers of organisational EI for SMEs versus large enterprises, revealing that some of the most cited determinants of EI, such as regulations or energy costs, are not relevant for SMEs. [Display omitted] •The research analyses the relationship between eco-innovation and organizational innovation for SMEs in Europe.•Innovation on work responsibility and decision making is the most conducive form of organizational eco-innovation.•Its effect is significantly higher for SMEs than for large corporations.•Some of the most cited determinants for eco-innovation are not relevant for small firms.