Title: Net zero innovation: application of capability-constraint framework to European small and medium-sized enterprises

Authors: Derya Fındık Yılmaz; Ali R. Direkçi; Abdullah Tirgil

Addresses: Department of Management Information Systems, Ankara Yıldırım Beyazıt University, Ankara, Türkiye ' Department of Business Administration, Alanya University, Antalya, Türkiye ' Department of Economics, Ankara Yıldırım Beyazıt University, Ankara, Türkiye

Abstract: In the transition to net-zero innovation, firms are facilitated by capabilities while deficiencies constrain them. Achieving targets requires evaluating conditions within and outside organisations. Success depends on integrating internal and external capabilities to overcome difficulties. Applying the capability-constraint framework (CCF), this study explores net-zero innovation among European SMEs using Flash Eurobarometer datasets 342, 381, 426, 456, and 498. We conclude that engaging in knowledge networks and acquiring information is more important than financial assistance. Regarding collaborative capabilities, these firms are motivated by public sector customers. Findings emphasise that well-developed socio-cognitive capabilities are essential to adopt and expand net-zero activities. We also find that firms exporting to Middle Eastern countries have a higher adoption rate. This study highlights that socio-cognitive and collaborative strengths are primary drivers for SMEs navigating the green market transition.

Keywords: net zero innovation; capabilities; constraints; small and medium-sized enterprise; SME; capability-constraint framework; CCF.

DOI: 10.1504/WRSTSD.2026.155377

World Review of Science, Technology and Sustainable Development, 2026 Vol.20 No.3, pp.334 - 360

Received: 21 Nov 2025
Accepted: 05 Mar 2026
Published online: 30 Jul 2026 *

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