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

Maletič Matjaž (), Maletič Damjan (), Dahlgaard Jens J. (), Dahlgaard-Park Su Mi () and Gomišček Boštjan ()
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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

Organizacija, 2014, vol. 47, issue 1, 3-13

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

Keywords: corporate sustainability; sustainability-oriented innovation; organizational performance; empirical study (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:organi:v:47:y:2014:i:1:p:3-13:n:1

DOI: 10.2478/orga-2014-0001

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