Abstract
The aim of this research is to explore the effect that innovation, as a potential source of sustained competitive advantage and firm growth, has on the achievement of sustainable economic performance. In particular, this paper empirically examines the influence of four innovation forms (intramural R&D, extramural R&D, product innovation, and process innovation) on firms’ sustainable economic performance, considering the moderating effect of family involvement in management. To test the hypotheses, random-effects regression analyses are applied to a longitudinal sample of 598 Spanish private manufacturing firms throughout the 2006–2015 period. The results show a negative effect of intramural and extramural R&D on sustainable economic performance and a positive effect of process innovation on sustainable economic performance. Moreover, a reinforced relationship between process innovation and sustainable economic performance is also revealed when family involvement in management acts as a moderator. The findings make several contributions to research and practice.
Highlights
The pursuit of sustainable performance is widely regarded as a central idea in the business world [1], to the extent that striking a balance between sustainability and economic development has become a key objective for many firms [2,3]
Considering the longitudinal character of the sample, with most businesses observed around twelve years, a panel data methodology was used to analyze the effect of different innovation forms on sustainable economic performance and the moderating role of family involvement in management
The correlation matrix reveals that firm size and process innovation are positively and significantly related to sustainable economic performance, while leverage, intramural R&D, and extramural R&D are negatively related to the dependent variable
Summary
The pursuit of sustainable performance is widely regarded as a central idea in the business world [1], to the extent that striking a balance between sustainability and economic development has become a key objective for many firms [2,3]. This is because, through a more sustainable behavior, firms are able to obtain social and environmental benefits, maintain their competitiveness in the long-term, and achieve better levels of profitability [4]. This study is focused on one of the classical dimensions of performance, i.e., profitability, operationalized through the return on asset ratio (ROA), which is considered an appropriate financial indicator of sustainable performance [4]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
