Year: 2023
Type: conference-paper
Abstract: During globalization and economic uncertainty, companies are required to continue to innovate to increase their competitive advantage.In addition, management should not ignore stakeholder encouragement for sustainable practices within the company.This study aims to provide empirical evidence about the relationship between innovation and the company's sustainability performance.Using data provided by Thomson Reuters, we tested 423 observations from 2013 to 2022.We use the GLS fixed-effect regression method in testing the hypothesis.The results show that the company's level of innovation has a positive effect on the company's sustainability performance.These findings conclude that innovation is an important factor to improve a company's sustainability performance.This research has academic and practical implications, where research connecting the two variables is still very rare.While the practical implication is that management can encourage companies to invest more in innovation activities to improve the company's sustainability performance.Likewise, the government also needs to encourage corporate innovation by providing stimulus and relevant legal umbrellas.
Authors: Sandra Aulia, Ahmad Hambali
Institution: University of Indonesia
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4388026740