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The present research paper focused on the phenomenon of innovation as a key solution for business success as it relates to corporate environmental responsibility (CER). The ultimate aim of CER is to prevent and even eliminate, if possible, the harmful impact of business performance on the environment. Every modern company should adhere to the obligations of CER since environmental pollution is a serious hazard that endangers future existence of humankind. For example, it is essential to implement strategies that can contribute to air and water protection. Ecological innovation emerged on the grounds of such urgent needs of environment. Eco-innovation strives to make a transition from business with harmful effects to one of the accountability. Therefore, the present study aimed to review relevant, reliable and up-to-date sources dealing with eco-based innovations in the context of CER. A qualitative research is selected so as to collect sufficient amount of detailed credible data on the issue of concern. The given paper relied on a secondary research encompassing literature review and relevant case studies and a survey as the primary research. Based on the outcomes, several innovations were identified and presented to the target audience.

Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs&rsquo, financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs&rsquo, sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs&rsquo, sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.

Against the backdrop of innovation fault-tolerance, government compensation for failed generic technological innovation projects is beneficial to stimulate re-innovation behaviour. However, considering the information asymmetry, a collusion tendency exists between the compensated party and the evaluator during the process of compensation. To prompt the government to build collusion-proof mechanisms to reduce collusion loss, the evolutionary game method was used to build replicated dynamic equations and a Jacobian matrix of both sides based on the information topology between the conspirators and regulator. Through the evolutionary equilibrium analysis and numerical simulation, evolutionary stability strategies (ESS) under different topological relationship information (non-intersect, partial intersect, and inclusive type) were found. Results show that the collusion behaviour can be effectively restrained when the government is unaware of collusion information, the net defense income is positive, and the penalty threshold is the product of the net collusive income and the ratio of the collusive and regulatory information. With the increasing amount of collusive information available to the government, the conspirators tend to adhere to moral principles subject to strict regulation. In addition, the moderating effect of penalty factor is positively correlated with the private information possessed by both sides. The conclusion is beneficial to provide theoretical support for optimizing the government-led compensation mechanism for failed generic technological innovation projects.

The knowledge-based view (KBV) in the development of small and medium-sized enterprises (SMEs) is a debatable topic in the current literature. Although convergence of technological and financial literacy (techno-finance literacy) is an essential knowledge-based tool to address rapid digitalization of business, the influence of techno-finance literacy in the development of SMEs is still not adequately researched. Drawing upon KBV, we developed a single-mediator structural model with an aim to explore the effect of techno-finance literacy and enterprise risk management (ERM) practices (applications) on the performance of SMEs. A self-administered structured questionnaire was employed to collect data from 319 chief financial offers (CFOs) in Sri Lankan SMEs. The outcome of our study highlights that techno-finance literacy is a significant determinant of two endogenous constructs, namely, SME performance and ERM practices. Furthermore, ERM practices of SMEs were also positively affected to the SME performance. Moreover, ERM practices were observed to have a partial mediation on the relationship between financial literacy and SME performance. These findings form the basis for theories in techno-finance literacy and SME performance, as well as present managerial implications to enhance the performance of SMEs.