Green Economics

This paper explores the adoption of environmentally friendly strategies amongst companies operating in Kosovo, how adopting environmentally friendly practices impacts the overall operational effectiveness and competitiveness of those companies. Data collected from 102 different companies via a structured survey using quantitative methods. The greatest barriers to the successful implementation of environmentally friendly practice were determined to be financial limitations and the cost associated with adopting new technologies while the major drivers of businesses adopting environmentally friendly strategies are environmental awareness and awareness of sensitivity within the sectors they operate. The results indicate that there is only a moderate degree of adoption of environmentally friendly strategies; the implementation of environmentally friendly practices is highly affected by financial limitations and sector sensitivity while technological costs do not have a significant effect on the likelihood of a firm implementing environmentally friendly strategies. By implementing environmentally friendly practices, companies reported increased operational efficiencies and decreased business expenses. Fewer than 50% of the companies surveyed reported the utilization of “green” technologies, nor did they report receiving support through government institutions to assist with the implementation of “green” technologies. The results of this research provide policymakers and management with specific recommendations on the need to develop targeted financial incentives, develop training programs, implement sector specific regulations and provide institutional support aimed at increasing the sustainability of Kosovo’s businesses.