The role of government support in advancing green innovation and achieving SDGs in SMEs: evidence from GCC nations

Purpose Driven by the United Nations’ global call for Sustainable Development Goals (SDGs), small and medium-sized enterprises (SMEs) are under increasing stakeholder pressure to adopt green innovation. This study explores the impact of stakeholder pressure on SMEs’ green innovation adoption and examines the moderating role of government support in achieving the SDGs. Design/methodology/approach Through an online questionnaire survey, data were collected from 309 owners and managers of SMEs operating in six Gulf Cooperation Council (GCC) nations. Using a combination of judgmental and snowball sampling techniques, the data were analyzed in SmartPLS4. Findings The findings confirm that stakeholder pressure (government, competitors, customers and suppliers) significantly drives green innovation adoption in SMEs that effectively contribute to the community and environmental-related UNSDGs. In addition, the moderating role of government support is empirically validated in the intricate relationship between green innovation and sustainability goals. Practical implications This study offers actionable insights for policymakers, SME development authorities and business leaders. Policymakers should design targeted financial and nonfinancial incentives to support SMEs’ sustainability initiatives. SMEs, in turn, should actively engage with stakeholders, including customers and suppliers, to integrate green practices into their business models. Originality/value This study provides preliminary empirical evidence from the GCC region on how stakeholder pressure influences the adoption of green innovation in SMEs. In addition, it highlights how government support for SMEs can act as a catalyst, fostering green innovation practices and contributing to the achievement of SDGs.