The Role of Innovation Management in Business Organizational Sustainability

Abstract

This research aims to: 1) To examine the role of innovation management in fostering corporate sustainability. 2) To conduct a comparative analysis of the effectiveness of innovation management practices on corporate sustainability. 3) To investigate the factors of innovation management that influence corporate sustainability. The statistical methods employed for data analysis include descriptive statistics, namely frequency distribution, percentages, mean, and standard deviation, which are utilized to characterize the sample group. Furthermore, inferential statistics are applied to test the relationships and influences between variables in accordance with the research hypotheses. Path analysis is conducted to determine the direct and indirect effects among the variables.

The research findings indicate the following: 1) Innovation management plays a crucial role and exerts a significant, direct positive influence on corporate sustainability. Specifically, it yields a direct positive effect on corporate sustainability (DE = 0.418) and demonstrates the highest direct positive relationship with corporate sustainability (DE = 0.594). This indicates that innovation management serves as a pivotal mechanism in driving organizations toward long-term sustainability. 2) ‍Regarding the performance and achievements across various dimensions of sustainability, the respondents expressed a high level of agreement or satisfaction across all aspects. When ranked by mean scores from highest to lowest, the performance in each dimension is ordered as follows: the economic dimension (Mean = 3.83), followed by the social dimension (Mean = 3.73), the environmental dimension (Mean = 3.73), and the corporate governance and transparency dimension (Mean = 3.73). 3) Multiple regression analysis revealed that the primary factors proven to significantly influence and contribute to corporate sustainability include: Direct Innovation Management Factors: These exert a direct positive effect on corporate sustainability (DE = 0.418* and DE = 0.594*). Total Quality Management (TQM) System: This serves as another vital supporting factor with a positive relationship, contributing both a direct effect (DE = 0.342*) and an indirect effect (IE = 0.247*) to corporate sustainability.