Small and medium-sized enterprises (SMEs) form the backbone of emerging economies. This is especially true in Ghana, where they represent around 90% of registered businesses and contribute significantly to employment and the economy of the west African nation.

But these businesses face distinct challenges. They must stay competitive in fast-evolving markets while addressing the environmental impacts of their actions. Our recent research investigated how Ghanaian SMEs are achieving this balance.

Ghana is a useful example for SME growth because it has focused on industrialisation coupled with sustainability, at the same time as the government offers initiatives to move the economy from agricultural exports towards manufacturing.

But SMEs in emerging economies like that of Ghana often lack the resources to make radical changes or develop entirely new products from scratch. However, we found that two distinct strategies that allow SMEs to innovate in a sustainable way.

The first of the two strategies is something known as “exploitative search” (meaning that businesses refine what they already have).

A manufacturer might enhance energy efficiency by updating equipment over time or switching to less harmful materials. This could reduce the........

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