Leveraging lean startup application to generate eco-innovation in European startups: the mediating role of financial resources, and patents

Purpose Although the relevant literature acknowledges the effectiveness of the Lean methodology in stimulating green innovation, it has not sufficiently tested the mediating roles of financial resources and patents, particularly within the European startup context. To bridge this gap, this study suggests a unique conceptual framework to examine the effect of Lean Startup methodology on the development of eco-innovation, particularly eco-processes and eco-products, while investigating the mediating roles of financial resources and patents in shaping these relationships. Design/methodology/approach This study adopts a quantitative, cross-sectional survey design. Data were collected through a structured questionnaire from 120 European startups across various sectors. The analysis was conducted using SmartPLS 4 with partial least squares structural equation modeling (PLS-SEM). Findings The results show that Lean Startup application has a direct positive effect on eco-product innovation. Its influence on eco-process innovation is indirect, fully mediated by financial resources. Patents, however, were not found to mediate the relationship between Lean Startup application and either eco-process or eco-product innovation. Additionally, a significant positive relationship was found between eco-process and eco-product innovations. Originality/value The findings provide novel visions into the literature on the role of the lean startup methodology in advancing green innovation, thus contributing to both entrepreneurial practice and policy making that aimed to promote sustainable development within the startup ecosystem.