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The Relationship between Sustainability– Oriented Innovation Practices and Organizational Performance: Empirical Evidence from Slovenian Organizations

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  • Maletič Matjaž

    (University of Maribor, Faculty of Organizational Sciences, Kidričeva cesta 55a, SI-4000 Kranj, Slovenia)

  • Maletič Damjan

    (University of Maribor, Faculty of Organizational Sciences, Kidričeva cesta 55a, SI-4000 Kranj, Slovenia)

  • Dahlgaard Jens J.

    (Linköping University, Department of Management and Engineering, Sweden)

  • Dahlgaard-Park Su Mi

    (Lund University, Department of Service Management, Sweden)

  • Gomišček Boštjan

    (University of Maribor, Faculty of Organizational Sciences, Kidričeva cesta 55a, SI-4000 Kranj, Slovenia)

Abstract

Background and Purpose - The purpose of this paper is to empirically analyse the effects of sustainability-oriented innovation practices on the overall organizational performance. Further, this paper also aims to advance understanding of the measurement of corporate sustainability practices with the focus on innovation dimensions. Design/Methodology/Approach - The study uses data obtained from a survey of 116 organizations encompassing both the manufacturing and service industries in Slovenia. Descriptive statistics were used in order to determine the level of sustainability-oriented innovation practices deployment. Exploratory factor analysis was applied to extract the underlying factors and to provide a basis for assessing their reliability and validity. In addition, regression analysis was used to quantify the effect of sustainability practices on the organizational performance. Results - Data analysis result showed that sustainability-oriented innovation practices are significantly associated with organizational performance. Therefore, empirical evidence from this research confirmed the premise that building innovation competencies and integrating innovation activities in organization’s processes lead to performance benefits. This contributes to the debate about the potential for organizations to be sustainable and competitive. Conclusion - The presented research on corporate sustainability provides important theoretical and practical insights on which the deployment of sustainability-oriented innovation practices are conducive to fostering a broader set of performance benefits. As such, managers should increase organizations’ capacity for innovation which can be beneficial in terms of performance implications and achieving sustainability goals

Suggested Citation

  • Maletič Matjaž & Maletič Damjan & Dahlgaard Jens J. & Dahlgaard-Park Su Mi & Gomišček Boštjan, 2014. "The Relationship between Sustainability– Oriented Innovation Practices and Organizational Performance: Empirical Evidence from Slovenian Organizations," Organizacija, Sciendo, vol. 47(1), pages 3-13, February.
    • Handle: RePEc:vrs:organi:v:47:y:2014:i:1:p:3-13:n:1
    DOI: 10.2478/orga-2014-0001
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    Citations

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    Cited by:

    1. Sajid Rahman Khattak & Imran Saeed & Bilal Tariq, 2018. "Corporate Sustainability Practices and Organizational Economic Performance," Global Social Sciences Review, Humanity Only, vol. 3(4), pages 343-355, December.
    2. Jones, Jane & Corral de Zubielqui, Graciela, 2017. "Doing well by doing good: A study of university-industry interactions, innovationess and firm performance in sustainability-oriented Australian SMEs," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 262-270.
    3. Otali Monday & Idoro Godwin & Udo Godfey, 2020. "Modelling the Relationship Between the Level of Adoption of Sustainability Practices and Performance of Construction Firms Using Structural Equation Modelling," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 8(1), pages 129-151, January.
    4. Ferdy F. F. Nuus & Petra C. M. Neessen & Cosmina L. Voinea & Marjolein C. J. Caniëls, 2022. "Sustainable Innovation in the Financial Sector during the Corona Crisis: How Discontinuity Affects Sustainable Innovation, Sustainable Entrepreneurial Orientation, and Absorptive Capacity," Sustainability, MDPI, vol. 14(11), pages 1-15, May.
    5. Xinpeng Xing & Tiansen Liu & Jianhua Wang & Lin Shen & Yue Zhu, 2019. "Environmental Regulation, Environmental Commitment, Sustainability Exploration/Exploitation Innovation, and Firm Sustainable Development," Sustainability, MDPI, vol. 11(21), pages 1-20, October.
    6. Enas Nadher Al-Baghdadi & Ahmad Abu Alrub & Husam Rjoub, 2021. "Sustainable Business Model and Corporate Performance: The Mediating Role of Sustainable Orientation and Management Accounting Control in the United Arab Emirates," Sustainability, MDPI, vol. 13(16), pages 1-26, August.
    7. Amal Alnamrouti & Husam Rjoub & Hale Ozgit, 2022. "Do Strategic Human Resources and Artificial Intelligence Help to Make Organisations More Sustainable? Evidence from Non-Governmental Organisations," Sustainability, MDPI, vol. 14(12), pages 1-23, June.
    8. Fűrész, Diána Ivett & Nagy, Ákos András & Hornyák, Miklós & Erdős, Sándor, 2021. "Úton a körforgásos gazdaság felé. Szisztematikus irodalomelemzés [Towards a circular economy - results of a systematic literature analysis]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1109-1129.
    9. Noor Ullah Khan & Wenya Wu & Roselina Binti Ahmad Saufi & Nur Ain Ayunni Sabri & Ashfaq Ahmad Shah, 2021. "Antecedents of Sustainable Performance in Manufacturing Organizations: A Structural Equation Modeling Approach," Sustainability, MDPI, vol. 13(2), pages 1-23, January.
    10. Xinpeng Xing & Tiansen Liu & Lin Shen & Jianhua Wang, 2020. "Linking Environmental Regulation and Financial Performance: The Mediating Role of Green Dynamic Capability and Sustainable Innovation," Sustainability, MDPI, vol. 12(3), pages 1-22, January.
    11. Guiling Yue & Haoqiang Wei & Noor Ullah Khan & Roselina Ahmad Saufi & Mohd Fathi Abu Yaziz & Hanieh Alipour Bazkiaei, 2023. "Does the Environmental Management System Predict TBL Performance of Manufacturers? The Role of Green HRM Practices and OCBE as Serial Mediators," Sustainability, MDPI, vol. 15(3), pages 1-24, January.

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