The Impact of Innovation on the Adoption of Greener Supply Chains: Evidence from Firms in the Western Balkans
The Impact of Innovation on the Adoption of Greener Supply Chains: Evidence from Firms in the Western Balkans

Author(s): Brunilda Kosta
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Sustainability; Innovation; Green supply chain; Western Balkans
Summary/Abstract: In response to global pressures for environmental responsibility and sustainable growth, businesses are increasingly seeking to transform their supply chains by adopting greener practices. In the Western Balkans, however, the transition to greener supply chains remains limited, hindered by structural challenges and a lack of integration with global sustainability standards. While existing literature emphasizes innovation as a key enabler of sustainable business practices, its specific role in supporting the shift to greener supply chains, especially in the WB6 context, has not been sufficiently explored. This study investigates the impact of innovation on the likelihood that firms adopt environmentally friendly sourcing practices, with a particular focus on the supply of greener materials. Drawing on data from 1,200 firms surveyed through the 2024 Business Opinion Balkan Barometer, the binary logistic regression model is applied to assess whether firms that engage in innovation are more likely to green their supply chains. The findings demonstrate a strong positive relationship between innovation and the adoption of greener material sourcing, suggesting that innovation serves as a critical driver in promoting sustainable supply chain transformation.

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