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- Title
ESG-driven innovation strategy and firm performance.
- Authors
Cabaleiro-Cerviño, Goretti; Mendi, Pedro
- Abstract
This paper investigates the impact of aligning an innovation strategy with Environmental, Social, and Governance (ESG) practices on innovation and non-innovation performance variables. Drawing on principles from Stakeholder Theory and Social Network Theory of Innovation, the research hypothesizes that ESG-driven firms will outperform firms that are not ESG-driven in terms of future innovation outcomes, labor productivity, exporting and survival rates. Using the Technological Innovation Panel (PITEC) database, a panel of Spanish companies, the study compares the performance of two groups of innovative firms: firms that declare that at least one of the ESG goals are relevant for their innovation activities (ESG-driven companies) and matched firms that regard all three ESG goals as not important (non-ESG companies). Our findings reveal that ESG-driven companies exhibit a better future innovation performance and that, in terms of labor productivity, exporting, and survival their performance is never inferior than that of innovative firms that are not ESG-driven.
- Subjects
SOCIAL network theory; ORGANIZATIONAL performance; LABOR productivity; INNOVATIONS in business; TECHNOLOGICAL innovations; STAKEHOLDER theory
- Publication
Eurasian Business Review, 2024, Vol 14, Issue 1, p137
- ISSN
1309-4297
- Publication type
Article
- DOI
10.1007/s40821-024-00254-x