The impact of innovation, corporate social responsibility, environmental practices, and organizational culture on organizational sustainability

https://doi.org/10.35912/amor.v5i4.2236
Published: Jul 11, 2024

Abstract:

Purpose: This study analyzes how corporate social responsibility (CSR), innovation, and environmental policies influence organizational sustainability. It also examines how organizational culture mediates these factors to enhance overall performance.

Research Methodology: This study employed a quantitative research design and distributed structured questionnaires to employees and managers in various industries. The data were analyzed using Structural Equation Modeling (SEM) to assess the relationships between the independent variables (innovation, CSR, and environmental practices), mediating variable (organizational culture), and dependent variable (organizational sustainability).

Results: The findings show that Environmental practices, CSR, and innovation significantly improve organizational sustainability. The relationship between these independent variables and organizational performance was found to be mediated by organizational culture. In particular, a strong organizational culture amplifies the benefits of these factors on performance, indicating that cultivating a strong culture is essential for attaining sustainability.

Contribution: This study advances our understanding of organizational sustainability by presenting data on important factors and the mediating function of organizational culture. This provides practitioners and policymakers with helpful ideas on how to use these characteristics to enhance performance.

Originality: A comprehensive model of organizational sustainability was created by combining five independent, mediating, and dependent variables. It presents a fresh viewpoint on how internal variables amplify the influence of sustainability drivers by highlighting the function of organizational culture and offering a comprehensive strategy for enhancing sustainability.

Keywords:
1. Innovation
2. CSR
3. environmental practice
4. organizational culture
Authors:
1 . Dany Amrul Ichdan
University of Malahayati, Indonesia
2 . Maryani Maryani
Politeknik Negeri Lampung, Indonesia
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How to Cite
Ichdan, D. A., & Maryani, M. (2024). The impact of innovation, corporate social responsibility, environmental practices, and organizational culture on organizational sustainability. Annals of Management and Organization Research, 5(4), 297–310. https://doi.org/10.35912/amor.v5i4.2236
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Issue & Section
Vol. 5 No. 4 (2024): May
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Norton, T. A., Zacher, H., & Ashkanasy, N. M. (2015). Pro-environmental organizational culture and climate. The psychology of green organizations, 322-348.

    Prakoso, A. A., Pradipto, E., Roychansyah, M. S., & Nugraha, B. S. (2020). Community-based tourism: concepts, opportunities and challenges. Journal of Sustainable Tourism and Entrepreneurship, 2(2), 95-107.

    Riestyaningrum, F., Ferdaos, E., & Bayramov, B. (2020). Customer behavior impact on international tourist's travel intention due to Covid-19. Journal of Sustainable Tourism and Entrepreneurship, 1(3), 231-243.

    Saxena, K., Balani, S., & Srivastava, P. (2021). The relationship among corporate social responsibility, sustainability and organizational performance in pharmaceutical sector: A literature review. International Journal of Pharmaceutical and Healthcare Marketing, 15(4), 572-597.

    Singh, J., Singh, H., & Kumar, A. (2020). Impact of lean practices on organizational sustainability through green supply chain management–an empirical investigation. International Journal of Lean Six Sigma, 11(6), 1035-1068.

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    Zhang, X., & Chun, D. (2023). Business Model Innovation of Exponential Organizations: The Case of Xiaomi. Sustainability, 15(7), 5738.

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  1. Abdelwahed, N. A. A., & Soomro, B. A. (2024). ENHANCING ORGANIZATIONAL BEHAVIOUR THROUGH CORPORATE GOVERNANCE: CRUCIAL ROLE OF ORGANIZATIONAL CULTURE AND SUSTAINABILITY. Corporate Governance and Organizational Behavior Review, 8(1).
  2. Aghelie, A. (2017). Exploring drivers and barriers to sustainability green business practices within small medium sized enterprises: primary findings. International Journal of Business and Economic Development (IJBED), 5(1).
  3. Akbar, Y. K., Ariana, S., Setyadi, A., Pawirosumarto, S., & Endri, E. (2024). Human Capital and Sustainable University: Mediating Role of Sustainable Human Resource Management in Indonesia.
  4. Al Mansoob, M. N., Al Qubati, A., & Ekowati, D. (2023). The Role of Organizational Culture in Promoting Sustainability Practices in Educational Organizations. Paper presented at the RSF Conference Series: Business, Management and Social Sciences.
  5. Amjad, F., Abbas, W., Zia-Ur-Rehman, M., Baig, S. A., Hashim, M., Khan, A., & Rehman, H.-u.-. (2021). Effect of green human resource management practices on organizational sustainability: the mediating role of environmental and employee performance. Environmental Science and Pollution Research, 28, 28191-28206.
  6. Asiaei, K., Bontis, N., Barani, O., & Jusoh, R. (2021). Corporate social responsibility and sustainability performance measurement systems: implications for organizational performance. Journal of Management Control, 32(1), 85-126.
  7. Batista, A. A. d. S., & Francisco, A. C. d. (2018). Organizational sustainability practices: A study of the firms listed by the corporate sustainability index. Sustainability, 10(1), 226.
  8. Batool, F., Mohammad, J., Awang, S. R., & Ahmad, T. (2022). The effect of knowledge sharing and systems thinking on organizational sustainability: the mediating role of creativity. Journal of Knowledge Management, 27(5), 1251-1278.
  9. Bilan, Y., Hussain, H. I., Haseeb, M., & Kot, S. (2020). Sustainability and economic performance: Role of organizational learning and innovation. Inzinerine Ekonomika-Engineering Economics.
  10. Boeske, J. (2023). Leadership towards sustainability: a review of sustainable, sustainability, and environmental leadership. Sustainability, 15(16), 12626.
  11. Crucke, S., Kluijtmans, T., Meyfroodt, K., & Desmidt, S. (2022). How does organizational sustainability foster public service motivation and job satisfaction? The mediating role of organizational support and societal impact potential. Public management review, 24(8), 1155-1181.
  12. Cugueró-Escofet, N., Ficapal-Cusí, P., & Torrent-Sellens, J. (2019). Sustainable human resource management: How to create a knowledge sharing behavior through organizational justice, organizational support, satisfaction and commitment. Sustainability, 11(19), 5419.
  13. Dani, M. V., Gandhi, A. V., & Sharma, A. (2023). Understanding drivers of innovation in information technology companies using a grounded theory approach. International Journal of Innovation Science(ahead-of-print).
  14. Dwivedi, P., Chaturvedi, V., & Vashist, J. K. (2023). Innovation for organizational sustainability: The role of HR practices and theories. International Journal of Organizational Analysis, 31(3), 759-776.
  15. Fatima, T., & Elbanna, S. (2023). Drivers and outcomes of corporate sustainability in the Indian hospitality industry. Management decision, 61(6), 1677-1696.
  16. Forozandeh, M. (2021). The effect of supply chain management challenges on research and development projects using Fuzzy DEMATEL and TOPSIS approach. Annals of Management and Organization Research, 2(3), 175-190.
  17. Garay, L., Font, X., & Corrons, A. (2019). Sustainability-oriented innovation in tourism: An analysis based on the decomposed theory of planned behavior. Journal of Travel research, 58(4), 622-636.
  18. Horak, S., Arya, B., & Ismail, K. M. (2018). Organizational sustainability determinants in different cultural settings: A conceptual framework. Business Strategy and the Environment, 27(4), 528-546.
  19. Isensee, C., Teuteberg, F., Griese, K.-M., & Topi, C. (2020). The relationship between organizational culture, sustainability, and digitalization in SMEs: A systematic review. Journal of cleaner production, 275, 122944.
  20. Kiesnere, A. L., & Baumgartner, R. J. (2019). Sustainability management in practice: Organizational change for sustainability in smaller large-sized companies in Austria. Sustainability, 11(3), 572.
  21. Levesque, V. R., & Wake, C. P. (2021). Organizational change for sustainability education: A case study of one university’s efforts to create and implement institution-wide sustainability competencies. International Journal of Sustainability in Higher Education, 22(3), 497-515.
  22. Maleti?, M., Maleti?, D., & Gomiš?ek, B. (2018). The role of contingency factors on the relationship between sustainability practices and organizational performance. Journal of cleaner production, 171, 423-433.
  23. Marlapa, E., Yuliantini, T., Junaedi, J., Kusuma, M., Shahnia, C., & Endri, E. (2024). Determinants of sustainable performance: The mediating role of organizational culture. Uncertain Supply Chain Management, 12(2), 1031-1040.
  24. Mujtaba, M., & Mubarik, M. S. (2022). Talent management and organizational sustainability: role of sustainable behaviour. International Journal of Organizational Analysis, 30(2), 389-407.
  25. Naab, R., & Bans-Akutey, A. (2021). Assessing the use of e-business strategies by SMEs in Ghana during the Covid-19 pandemic. Annals of Management and Organization Research, 2(3), 145-160.
  26. Nawaz, W., & Koç, M. (2019). Exploring organizational sustainability: Themes, functional areas, and best practices. Sustainability, 11(16), 4307.
  27. Norton, T. A., Zacher, H., & Ashkanasy, N. M. (2015). Pro-environmental organizational culture and climate. The psychology of green organizations, 322-348.
  28. Prakoso, A. A., Pradipto, E., Roychansyah, M. S., & Nugraha, B. S. (2020). Community-based tourism: concepts, opportunities and challenges. Journal of Sustainable Tourism and Entrepreneurship, 2(2), 95-107.
  29. Riestyaningrum, F., Ferdaos, E., & Bayramov, B. (2020). Customer behavior impact on international tourist's travel intention due to Covid-19. Journal of Sustainable Tourism and Entrepreneurship, 1(3), 231-243.
  30. Saxena, K., Balani, S., & Srivastava, P. (2021). The relationship among corporate social responsibility, sustainability and organizational performance in pharmaceutical sector: A literature review. International Journal of Pharmaceutical and Healthcare Marketing, 15(4), 572-597.
  31. Singh, J., Singh, H., & Kumar, A. (2020). Impact of lean practices on organizational sustainability through green supply chain management–an empirical investigation. International Journal of Lean Six Sigma, 11(6), 1035-1068.
  32. Srisathan, W. A., Ketkaew, C., & Naruetharadhol, P. (2020). The intervention of organizational sustainability in the effect of organizational culture on open innovation performance: A case of thai and chinese SMEs. Cogent Business & Management, 7(1), 1717408.
  33. Zhang, X., & Chun, D. (2023). Business Model Innovation of Exponential Organizations: The Case of Xiaomi. Sustainability, 15(7), 5738.
  34. Zoogah, D. B. (2018). High?performance organizing, environmental management, and organizational performance: An evolutionary economics perspective. Human resource management, 57(1), 159-175.