THE POWER OF INNOVATION ON PERFORMANCE AND SOCIO-ENVIRONMENTAL SUSTAINABILITY
Keywords:innovation, performance, sustainability
Purpose: This study has analyzed the relationship between process and organizational innovation, performance in product, market and technical innovation and social environmental sustainability.
Design/methodology/approach: The data was collected in industrial companies using a questionnaire with a Likert scale and a structural equation model was used to estimate the parameters.
Findings: The results indicated that process and organizational innovation mediated by performance in product, market and technical innovation, influence social and environmental sustainability.
Practical implications: According to the investigated managers, the practical contributions point to the need of considering innovation elements to achieve a good performance. Subsequently points out that better performing organizations favor practices to seek the global sustainability of the enterprises.
Originality/value: The model used in this study, is broader than that applied in previous studies when considering the dimensions of innovation, performance and sustainability concurrently. Thus, it suggests the understanding, by the interested parties, about organizational performance as an influence of good socio-environmental sustainability practices.
Adams, R., Jeanrenaud, S., Bessant, J., Denyer, D., & Overy, P. (2016), Sustainability‐oriented innovation: A systematic review, International Journal of Management Reviews, Vol. 18 No. 2, pp. 180-205.
Agudo‐Valiente, J. M., Garcés‐Ayerbe, C., & Salvador‐Figueras, M. (2015). Corporate social performance and stakeholder dialogue management. Corporate Social Responsibility and Environmental Management, Vol. 22, No. 1, pp. 13-31.
Aguilera-Caracuel, J., & Ortiz-de-Mandojana, N. (2013), Green innovation and financial performance: An institutional approach, Organization & Environment, Vol. 26, No. 4, pp. 365-385.
Albareda, L., & Hajikhani, A. (2019), Innovation for sustainability: Literature review and bibliometric analysis, Innovation for Sustainability, pp. 35-57.
Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. Academy of management journal, Vol. 39, No. 5, pp. 1154-1184.
Annunziata, E., Pucci, T., Frey, M. and Zanni, L. (2018), The role of organizational capabilities in attaining corporate sustainability practices and economic performance: Evidence from Italian wine industry, Journal of Cleaner Production, Vol. 171, pp. 1300-1311.
Bagozzi, R. P., Yi, Y. and Phillips, L. W. (1991), Assessing construct validity in organizational research, Administrative Science Quarterly, Vol. 36, No. 3, pp. 421-458.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, Vol. 51, No. 6, pp. 1173.
Bititci, U. S., Carrie, A. S. and Mcdevitt, L. (1997), Integrated performance measurement systems: a development guide, International Journal of Operations & Production Management, Vol. 17, No. 5, pp. 522-534.
Bocken, N., Ritala, P., Albareda, L. and Verburg, R. (2019), Introduction: Innovation for Sustainability. In Innovation for Sustainability (pp. 1-16). Palgrave Macmillan, Cham.
Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002), Learning orientation, firm innovation capability, and firm performance, Industrial marketing management, Vol. 31, No. 6, pp. 515-524.
Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial marketing management, Vol. 31, No. 6), pp. 515-524.
Chapman, M. (2006). Building an innovative organization: consistent business and technology integration. Strategy and Leadership, Vol. 34, No. 4, pp. 32-38.
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, Vol. 295, No. 2, pp. 295-336.
Chin, W. W., Marcolin, B. L. and Newsted, P. R. (2003), A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study, Information Systems Research, Vol. 14, No. 2, pp. 189-217.
Das, D. (2017), Development and validation of a scale for measuring Sustainable Supply Chain Management practices and performance, Journal of Cleaner Production, Vol. 164, 1344-1362.
Duque-Grisales, E., Aguilera-Caracuel, J. (2019), Environmental, social and governance (ESG) scores and financial performance of multinationals: Moderating effects of geographic international diversification and financial slack, Journal of Business Ethics, Vol. 5, No. 1, pp. 1-20.
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, Vol. 60, No. 11, pp. 2835-2857.
Fuller, D. A. and Ottman, J. A. (2004), Moderating unintended pollution: the role of sustainable product design, Journal of Business Research, Vol. 57, No. 11, pp. 1231-1238.
Ghassim, B., & Bogers, M. (2019), Linking stakeholder engagement to profitability through sustainability-oriented innovation: A quantitative study of the minerals industry, Journal of Cleaner Production, Vol. 224, pp. 905-919.
Gomes, C. M., Scherer. F. L., Menezes, U. G., Luz Neto, R. and Kruglianskas, I. (2013), Strategies of sustainable management and business performance: an analysis in innovative companies, International Journal of Innovation Management, Vol. 17, No. 05, pp. 1350026.
González-García, S., Lozano, R. G., Moreira, M. T., Gabarrell, X., i Pons, J. R., Feijoo, G., & Murphy, R. J. (2012), Eco-innovation of a wooden childhood furniture set: an example of environmental solutions in the wood sector, Science of the Total Environment, Vol. 426, pp. 318-326.
Guerrero‐Villegas, J., Sierra‐García, L., & Palacios‐Florencio, B. (2018), The role of sustainable development and innovation on firm performance, Corporate Social Responsibility and Environmental Management, Vo. 25 No. 6, pp. 1350-1362.
Gunday, G., Ulusoy, G., Kilic, K. And Alpkan, L. (2011), Effects of innovation types on firm performance, International Journal of Production Economics, Vol. 133, No. 2, pp. 662-676. DOI: https://doi.org/10.1016/j.ijpe.2011.05.014.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications.
Hair Jr., J. F., Hult, G. T. M., Ringle, C. and Sarstedt, M. (2017), A primer on partial least squares structural equation modeling (PLS-SEM), 2nd edition, Sage Publications, Los Angeles.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, Vol. 19, No. 2, pp. 139-152.
Hair, J. F., Sarstedt, M. and Ringle, C. M. (2013). Partial least squares structural equation modeling: rigorous applications, better results and higher acceptance, Long Range Planning, Vol. 46, No. 1, pp. 1, 2013.
Hair, J. F., Sarstedt, M., Ringle, C. M. and Mena, J. A. (2012), An assessment of the use of partial least squares structural equation modeling in marketing research, Journal of the Academy of Marketing Science, Vol. 40, No. 3, pp. 414-433.
Henseler, J., Ringle, C. M. and Sarstedt, M. (2015), A new criterion for assessing discriminant validity in variance-based structural equation modeling, Journal of the Academy of Marketing Science, Vol. 43, No. 1, pp. 115-135.
Huang, J. W., & Li, Y. H. (2017), Green innovation and performance: The view of organizational capability and social reciprocity, Journal of Business Ethics, Vol. 145, No. 2, pp. 309-324.
Kahn, K. B. (2018), Understanding innovation, Business Horizons, Vol. 61, No. 3, pp. 453-460.
Klewitz, J., & Hansen, E. G. (2014), Sustainability-oriented innovation of SMEs: a systematic review, Journal of cleaner production, Vol. 65, pp. 57-75.
Kneipp, J. M., Gomes, C. M., Bichueti, R. S., de Oliveira Müller, L., & Motke, F. D. (2018), Gestão estratégica da inovação sustentável: um estudo de caso em empresas industriais brasileiras, Revista Organizações em Contexto, Vol. 14, No. 27, pp. 131-185.
Lee, R., Lee, J-H. and Garrett, T. C. (2019), Synergy effects of innovation on firm performance, Journal of Business Research, Vol. 99, pp. 507-515.
Likar, B., Kopač, J., & Fatur, P. (2014). Innovation investment and economic performance in transition economies: Evidence from Slovenia. Innovation, Vol. 16, No. 1, pp. 53-66.
Lin, R. J., Tan, K. H., & Geng, Y. (2013), Market demand, green product innovation, and firm performance: evidence from Vietnam motorcycle industry, Journal of Cleaner Production, Vol. 40, pp. 101-107.
Maletič, M., Maletič, D., Dahlgaard, J. J., Dahlgaard-Park, S. M., & Gomišček, B. (2016), Effect of sustainability-oriented innovation practices on the overall organisational performance: An empirical examination, Total Quality Management & Business Excellence, Vol. 27, No. 9-10, pp. 1171-1190.
Marcon, A., de Medeiros, J. F., & Ribeiro, J. L. D. (2017), Innovation and environmentally sustainable economy: Identifying the best practices developed by multinationals in Brazil, Journal of Cleaner Production, Vol. 160, pp. 83-97.
Moyano-Fuentes, J., Maqueira-Marín, J. M., & Bruque-Cámara, S. (2018). Process innovation and environmental sustainability engagement: An application on technological firms. Journal of Cleaner Production, Vol. 171, pp. 844-856.
Muhamad, M. R., Ebrahim, Z. and Hami, N. (2014, January), The influence of innovation performance towards manufacturing sustainability performance. In the proceeding of 2014 International Conference on Industrial Engineering and Operations Management.
Nambisan, S. (2013). Industry technical committees, technological distance, and innovation performance. Research policy, Vol. 42, No. 4, pp. 928-940.
Nidumolu, R., Prahalad, C. K., & Rangaswami, M. R. (2013), Why sustainability is now the key driver of innovation, IEEE Engineering Management Review, Vol. 2, No. 41.
Nybakk, E., & Jenssen, J. I. (2012). Innovation strategy, working climate, and financial performance in traditional manufacturing firms: An empirical analysis. International Journal of innovation management, Vol. 16, No. 02, pp. 1250008.
OECD/Eurostat. (2018), Oslo Manual 2018: Guidelines for Collecting, Reporting and Using Data on Innovation, 4th Edition, The Measurement of Scientific, Technological and Innovation Activities, OECD Publishing, Paris/Eurostat, Luxembourg.
Oke, A., Walumbwa, F. O., & Myers, A. (2012). Innovation strategy, human resource policy, and firms' revenue growth: The roles of environmental uncertainty and innovation performance. Decision sciences, Vol. 43, No. 2, pp. 273-302.
Rajapathirana, R. P J. and Hui, Y. (2018), Relationship between innovation capability, innovation type, and firm performance, Journal of Innovation & Knowledge, Vol. 3, No. 1, pp. 44-55, 2018.
Ramadani, V., Hisrich, R. D., Abazi-Alili, H., Dana, L. P., Panthi, L., & Abazi-Bexheti, L. (2019), Product innovation and firm performance in transition economies: A multi-stage estimation approach, Technological Forecasting and Social Change, Vol. 140, pp. 271-280.
Ringle, C. M., Wende, S. and Becker, J-M. SmartPLS 3, Bönningstedt: SmartPLS GmbH, http: // www. SmartPLS. com de 2015.
Sarstedt, M. and Mooi, E. A. (2014), A concise guide to market research: The process, data, and methods using IBM SPSS statistics (2nd. ed.), Springer, Berlin.
Sebrae. (2013) Macrorregião Oeste. Access in January 18, 2020. https://www.sebrae.com.br/Sebrae/Portal%20Sebrae/Anexos/Macrorregiao%20-%20Oeste.pdf. (in Portuguese)
Shaukat, S., Nawaz, M. S. and Naz, S. (2013), Effects of innovation types on firm performance: An empirical study on Pakistan's manufacturing sector, Pakistan Journal of Commerce and Social Sciences (PJCSS), Vol. 7, No. 2, pp. 243-262.
Silvestre, B. S., & Ţîrcă, D. M. (2019), Innovations for sustainable development: Moving toward a sustainable future, Journal of Cleaner Production, Vol. 208, pp. 325-332.
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, Vol. 43, No. 2-3, pp. 172-194.
Tidd, J., & Bessant, J. (2015), Gestão da inovação, 5th edition, Bookman Editora, Porto Alegre.
Tsai, K‐H. and Liao, Y‐C. (2017), Sustainability strategy and eco‐innovation: A moderation model, Business Strategy and the Environment, Vol. 26, No. 4, pp. 426-437.
Tuan, N., Nhan, N., Giang, P., & Ngoc, N. (2016). The effects of innovation on firm performance of supporting industries in Hanoi, Vietnam. Journal of Industrial Engineering and Management, Vol. 9, No. 2, pp. 413-431.
Zhang, D., Rong, Z., & Ji, Q. (2019). Green innovation and firm performance: Evidence from listed companies in China. Resources, Conservation and Recycling, Vol. 144, pp. 48-55
Zhu, Q., Liu, J., & Lai, K. H. (2016). Corporate social responsibility practices and performance improvement among Chinese national state-owned enterprises. International Journal of production economics, 171, pp. 417-426.
How to Cite
Copyright (c) 2021 Sady Mazzioni, Cristian Baú Dal Magro , Jaime Dagostim Picolo, Gabriela Bertoletti Johann
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in IJIER journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.