Innovation and Sustainability Dynamics in Manufacturing: A Structural Equation Modelling Approach
Much has been said in research literature about how innovation contributes to sustainability of business both in service and manufacturing contexts. Nevertheless, not many of those researches consider the influence of these two aspects on organizational performance. To address this gap, this research focusses on the role played by innovation in promoting organizational performance in manufacturing industries with sustainability as the mediating factor. The research is based on positivist paradigm and has adopted empirical approach for testing nine hypotheses using structural modelling technique using a sample size of 211 based on convenience sampling. The respondents for the questionnaire survey were managers from manufacturing industries. The hypothesis testing has indicated that while both product and process innovation contribute to social, economic and environmental sustainability, only economic sustainability contributes to the organizational performance. Based on the results, implication have been drawn to the managers of manufacturing industries to enhance their organizational performance.
Keywords - Manufacturing Performance, Product Innovation, Process Innovation, Social Sustainability, Economic Sustainability, Environmental Sustainability, Organizational Performance