Assessing the Integrated Impact of Sustainable Innovation on Organisational Performance: An Empirical Evidence From Manufacturing Firms

Abstract

Sustainable Development Goals (SDGs) have gained importance and the world is moving on a sustainability trajectory, which requires organisations to balance financial, environmental, and social dimensions of management. Companies are encouraged to adopt sustainable innovations that include resource efficiency, waste reduction, energy use, responsible behavior etc., to overcome environmental issues and incorporate societal aspects. However, the types of innovations that embrace the so-called triple bottom line philosophy have been tenuously investigated in relation to organisational performance of firms. Through an empirical study, this work investigates the relationship between sustainable innovation in its three dimensions and organisational performance, including stakeholder management, human resource management and process measures, in the context of Italian manufacturing companies. The results show that a greater emphasis on sustainable innovations has a positive impact on the organisational performance and competitive advantage of firms, revealing the key role of human capital and portraying important avenues for future research.