The Effect of Innovation Performance and Sustainable Manufacturing Practices on Economic Sustainability

Abstract

The growth of the concept of sustainability
represents a profound movement in world
thought, driving firms to take action to
reevaluate their approach to conducting
commercial operations. Firms must reestablish their company strategy to promote
economic development by putting in place
more comprehensive sustainable practices.
According to earlier research, firms would
perform better when they implement
sustainable manufacturing practices (SMP),
which are described as intra- and interorganizational practices that incorporate
environmental, social, and economic concerns
into daily operations. The purpose of the
study reported in this paper is to examine
how SMP affects economic sustainability (ES)
and how SMP mediates ES. via innovation
performance (IP). Surprisingly, despite
Although there is little correlation between
external SMP and ES, the relevance of this
relationship has changed when product and
process innovations are taken into account.
The findings, in general, empirically indicate
the importance of SMP and IP in predicting
economic success. As a result, rather than
acting on good intentions or in response to
outside pressure, companies should identify
and capitalize on the financial advantages of
being socially and ecologically conscious.