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Information Sciences Letters

Information Sciences Letters

Abstract

Background: Small and medium enterprises (SMEs) in developing countries encounter numerous challenges that obstruct the goal of greenness in their innovations. These challenges cause over-featuring, delays, or abandon projects; in a way they consume resources without reaching objectives. Objective: To examine project manager’s decision logics in relation to green innovation. Method: This study applies effectuation lens and examines 523 questionnaire-based responses of SMEs’ project managers in Kingdom of Saudi Arabia (KSA). Results and Analyses: Analysis has been conducted through SPSS 24 Process macro model-4. Results suggest that four principles of project manager’s effectuation decision logic – Means, Affordable loss, Pre-commitment, and Exploiting contingencies are positively moderated by causation decision logic to achieve green innovation. Conclusion and Contributions: This study extends scope of effectuation theory to green innovation literature through combining experience of SMEs that rely on effectuation, and green innovation that relies on causation principles. Also, it brings experience of KSA which is a developing economy and effectuation lens has been largely applied to western developed economies. To practitioners, study suggests amalgamating effectuation principles with causation logic to gain utility. However, emphasis on causation logic must not be high else results may not be achieved. This study is original and is among the earliest empirical examinations to study effectuation theory aiming green innovation in a developing economy.

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