Eco‐Innovation as a Predictor of Ambidexterity and Performance in Small‐ and Medium‐Sized Enterprises: An Empirical Study and a New Global Perspective

ABSTRACT Amid growing concerns over global environmental degradation, “eco‐innovation”—defined as technological and nontechnological innovations that are environmentally conscious and make rational use of resources—has gained increasing attention even among small‐ and medium‐sized enterprises (SMEs). At the same time, “ambidexterity,” which refers to balancing the pursuit of novelty (exploration) with the pursuit of incremental improvement (exploitation), has also attracted scholarly interest. However, no prior research has positioned eco‐innovation as a predictor of ambidexterity. This study aims to clarify the relationships among eco‐innovation, ambidexterity, and firm performance by conducting a hierarchical multiple regression analysis using survey data from 123 Japanese manufacturing SMEs. The results indicate that eco‐innovation is positively associated with exploration, while exploitation is positively associated with performance. These findings suggest that while exploitation alone may be sufficient to achieve short‐term gains, pursuing exploration in conjunction with eco‐innovation is essential for advancing both global sustainability and firm performance. This study is the first to demonstrate, within the framework of institutional theory and resource dependence theory, that exogenously introduced eco‐innovations may trigger exploration strategies among SMEs.