Advancing Sustainable Development Through Resource Efficiency: Institutional Asymmetries and Firm Capabilities in European Agri‐Food SMEs

Abstract

ABSTRACT Resource efficiency has become a priority for the European agri‐food sector, yet adoption remains uneven across countries and firms. This study examines how European agri‐food small and medium‐sized enterprises (SMEs) adopt resource efficiency practices. The study draws on institutional theory and the resource‐based view, adopting a two‐stage empirical design. Using Flash Eurobarometer 549, entropy weighting, TOPSIS, and VIKOR, we compare adoption patterns across 10 EU countries, while ordered logistic regression examines firm‐level factors associated with adoption intensity among 174 agri‐food SMEs. The findings suggest that cross‐country differences in adoption are associated with institutional contexts, whereas firm‐level variation is related to financial resources, external support, and implementation difficulties. Process improvements are widely adopted across SMEs, whereas more advanced practices such as renewable energy use and eco‐design vary to a greater degree across countries. The study provides comparative evidence on resource efficiency practice adoption, highlighting the relevance of national contexts and firm‐level resources.