The Influence of Innovation on Corporate Sustainability in the International Banking Industry

Francisco Forcadell, Elisa Aracil and Fernando Úbeda
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Elisa Aracil: Department of Economics, Universidad Pontificia Comillas ICADE, 28015 Madrid, Spain
Fernando Úbeda: Department of Finance, Universidad Autónoma de Madrid, 28049 Madrid, Spain

Sustainability, 2019, vol. 11, issue 11, 1-15

Abstract: We empirically explore the innovation and corporate sustainability link using a large sample of worldwide banks for the period 2003–2016. Our results suggest that service innovation performance enhances the banking industry’s corporate sustainability. In addition, we contribute by proposing a conceptual framework for understanding the link between innovation performance and corporate sustainability in the banking industry. The framework consists of three underlying dimensions—the antecedents of innovation performance, the specific innovation performance initiatives, and how these initiatives are converted into improved corporate sustainability. Our findings provide insights for academics and practitioners on the dynamics between service innovation performance and corporate sustainability in the banking sector. Further, due to the intermediation role of banks in the economy, their evolution towards sustainable banking constitutes a lever for sustainability across other industries and overall sustainable development.

Keywords: innovation; service industry; banks; corporate sustainability; sustainable innovation; sustainable development; stochastic frontiers; sustainable finance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:11:p:3210-:d:238472

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