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Environmental Orientation and Sustainable Innovation Performance: The Role of Dynamic Capabilities

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

In the preceding decade, the imperative for effective dimensional integration of the “triple bottom line” has garnered escalating attention in scholarly and practical domains. Contemporary businesses find themselves compelled to interlink their resources within a broader context, propelling their business models through the prism of sustainability to synchronize profitability objectives with environmental and social imperatives. This study investigates the interplay between environmental orientation and sustainable innovation, exploring the mediating role of dynamic capacities, utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM). Survey-based empirical insights from 348 Italian manufacturing entities reveal that dynamic capabilities mediate the relationship between environmental orientation and sustainable innovation performance, resulting in enhanced environmental, social, and economic outcomes. Particularly, cultivating dynamic capabilities demonstrates a stronger association with internal environmental orientation. The research contributes to understanding the nexus between dynamic capabilities and sustainability, emphasizing the roles of organizational learning, shared vision, relationship building, cross-functional integration, and technology sensing/response capabilities. The findings highlight the importance of aligning socio-ecological attributes with stakeholder benefits and technological capabilities for success in sustainability-oriented innovations. The outcomes are discussed with consideration of limitations and implications for practical applications and future research.
Original languageEnglish
Title of host publicationSustainable Horizons for Business, Education, and Technology
Subtitle of host publicationInterdisciplinary Insights
EditorsHashem Alshurafat, Allam Hamdan, John Sands
PublisherSpringer
Pages149-169
Number of pages21
ISBN (Electronic)9789819729814
ISBN (Print)9789819729807
DOIs
Publication statusPublished - 21 Jun 2024

Publication series

NameContributions to Environmental Sciences & Innovative Business Technology
PublisherSpringer Nature
ISSN (Print)2731-8303
ISSN (Electronic)2731-8311

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