The influence of industries on SMEs’ engagement in eco-design practices

This thesis contributes by analyzing eco-design practices of SMEs in the service sector and its industries across Europe. Two types of eco-design practices are distinguished: offering of eco-design products and services and investments in eco-design processes (resource efficiency). The service sector is identified as less likely to adopt eco-design practices, due to relatively low resource intensities, marginal financial incentives and a low visibility. However, the service sector represents a high potential in decreasing environmental degradation due to an increased use of natural resources. Also, the service sector is the largest sector in Europe in terms of GDP. Furthermore, the focus on SMEs is important. Previous research mainly examines eco-design practices performed by MNCs. However, SMEs produce 60 to 70% of total pollution in the EU. It is important to get insights in the way SMEs behave in the field of eco-design practices in order to decrease environmental degradation. Also, stimulating the adoption of eco-design practices by implementing focused regulation and policies is important. Regulation nowadays has to be approved by the EU. To provide recommendations for focused regulation and policies, it is important to perform cross-country analyses. By using data for over 5,600 SMEs across 12 sectors in Europe, this study tests hypotheses regarding the service sector and the following industries within the service sector: Accommodation, Transport and Financial. The results indicate that SMEs active in the service sector are indeed less likely to engage in eco-design practices compared to other sectors. Industry-specific analyses show no significant differences between the industries of interest regarding eco-design processes. It could be that resource intensities differences within the service sector are not large enough in order to provide additional financial incentives. The results are consistent to the expectations regarding eco-design products and service offerings. SMEs active in the Accommodation industry are most likely to engage in eco-design products and services, followed by SMEs active in the Transport industry. The Financial industry is least likely to engage in eco-design products and services, as hypothesized.