IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i4p2712-2730.html
   My bibliography  Save this article

Responsible innovation and corporate sustainability performance: A structural equation modeling‐neural network approach

Author

Listed:
  • Khalid Rasheed Memon
  • Say Keat Ooi
  • Heesup Han

Abstract

Technological innovations may bring unintended consequences despite their potential usefulness. Responsible innovation (RI) has gained increasing popularity in high‐tech nations as a means to mitigate potentially disruptive technological developments. Unfortunately, existing RI research has not sufficiently elucidated the sustainability performance of firms, leading to ambiguous theoretical underpinnings, relationships, and practical applicability. This study aims to address these concerns and provide directions for future research on RI. Based on the resource‐based view, the research introduces RI as a distinctive competency of a firm to investigate the mechanisms driving sustainability performance, measured in three areas: financial, social, and environmental. The study presents the antecedents of RI as a driving force that can enable businesses to gain a sustainable competitive advantage (SCA) and improve sustainability performance. Data were collected from 190 innovative manufacturing firms in Malaysia. First, structural equation modeling (SEM) was utilized to investigate the antecedents that significantly influence RI. In the second phase, artificial neural network (ANN) analysis was employed to rank the significant predictors identified through SEM. Furthermore, the RI dimensions that lead to SCA and sustainability performance were also ranked using ANN, offering practical strategic business directions for managers.

Suggested Citation

  • Khalid Rasheed Memon & Say Keat Ooi & Heesup Han, 2024. "Responsible innovation and corporate sustainability performance: A structural equation modeling‐neural network approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2712-2730, May.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:4:p:2712-2730
    DOI: 10.1002/bse.3627
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3627
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3627?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andreas Georg Scherer & Christian Voegtlin, 2020. "Corporate Governance for Responsible Innovation: Approaches to Corporate Governance and Their Implications for Sustainable Development," Post-Print hal-02623585, HAL.
    2. Golini, Ruggero & Longoni, Annachiara & Cagliano, Raffaella, 2014. "Developing sustainability in global manufacturing networks: The role of site competence on sustainability performance," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 448-459.
    3. Zhang, Stephen X. & Chen, Jiyao & He, Liangxing & Choudhury, Afreen, 2023. "Responsible Innovation: The development and validation of a scale," Technovation, Elsevier, vol. 124(C).
    4. Nick Pidgeon & Karen Parkhill & Adam Corner & Naomi Vaughan, 2013. "Deliberating stratospheric aerosols for climate geoengineering and the SPICE project," Nature Climate Change, Nature, vol. 3(5), pages 451-457, May.
    5. Marc Dreyer & Luc Chefneux & Anne Goldberg & Joachim Von Heimburg & Norberto Patrignani & Monica Schofield & Chris Shilling, 2017. "Responsible Innovation: A Complementary View from Industry with Proposals for Bridging Different Perspectives," Sustainability, MDPI, vol. 9(10), pages 1-25, September.
    6. Mohd Helmi Ali & Suhaiza Zailani & Mohammad Iranmanesh & Behzad Foroughi, 2019. "Impacts of Environmental Factors on Waste, Energy, and Resource Management and Sustainable Performance," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    7. Rifat Kamasak, 2017. "The contribution of tangible and intangible resources, and capabilities to a firm’s profitability and market performance," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 26(2), pages 252-275, July.
    8. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Dayananda Palihawadana, 2017. "Erratum to: Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 607-607, February.
    9. Julian Marius Müller & Daniel Kiel & Kai-Ingo Voigt, 2018. "What Drives the Implementation of Industry 4.0? The Role of Opportunities and Challenges in the Context of Sustainability," Sustainability, MDPI, vol. 10(1), pages 1-24, January.
    10. Catherine M. Daily & S. Trevis Certo & Dan R. Dalton, 2000. "International experience in the executive suite: the path to prosperity?," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 515-523, April.
    11. Raphael Amit & Paul J. H. Schoemaker, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 33-46, January.
    12. Luciana Maines da Silva & Claudia Cristina Bitencourt & Kadígia Faccin & Tatiana Iakovleva, 2019. "The Role of Stakeholders in the Context of Responsible Innovation: A Meta-Synthesis," Sustainability, MDPI, vol. 11(6), pages 1-25, March.
    13. Sarstedt, Marko & Hair, Joseph F. & Ringle, Christian M. & Thiele, Kai O. & Gudergan, Siegfried P., 2016. "Estimation issues with PLS and CBSEM: Where the bias lies!," Journal of Business Research, Elsevier, vol. 69(10), pages 3998-4010.
    14. Say Keat Ooi & Chan Hua Lee & Azlan Amran, 2023. "Assessing the influence of social capital and innovations on environmental performance of manufacturing SMEs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3242-3254, November.
    15. Rob Lubberink & Vincent Blok & Johan Van Ophem & Onno Omta, 2017. "Lessons for Responsible Innovation in the Business Context: A Systematic Literature Review of Responsible, Social and Sustainable Innovation Practices," Sustainability, MDPI, vol. 9(5), pages 1-31, May.
    16. Samuel Adomako & Mai Dong Tran, 2022. "Environmental collaboration, responsible innovation, and firm performance: The moderating role of stakeholder pressure," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1695-1704, May.
    17. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Daydanda Palihawadana, 2017. "Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 585-606, February.
    18. Sarstedt, Marko & Hair, Joseph F. & Cheah, Jun-Hwa & Becker, Jan-Michael & Ringle, Christian M., 2019. "How to specify, estimate, and validate higher-order constructs in PLS-SEM," Australasian marketing journal, Elsevier, vol. 27(3), pages 197-211.
    19. Zhu, Qinghua & Sarkis, Joseph & Lai, Kee-hung, 2008. "Confirmation of a measurement model for green supply chain management practices implementation," International Journal of Production Economics, Elsevier, vol. 111(2), pages 261-273, February.
    20. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    21. Ching-Hsun Chang, 2011. "The Influence of Corporate Environmental Ethics on Competitive Advantage: The Mediation Role of Green Innovation," Journal of Business Ethics, Springer, vol. 104(3), pages 361-370, December.
    22. Flatten, Tessa C. & Engelen, Andreas & Zahra, Shaker A. & Brettel, Malte, 2011. "A measure of absorptive capacity: Scale development and validation," European Management Journal, Elsevier, vol. 29(2), pages 98-116, April.
    23. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    24. Lees, Nic & Lees, Isobel, 2018. "Competitive advantage through responsible innovation in the New Zealand sheep dairy industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(4).
    25. Liébana-Cabanillas, Francisco & Marinković, Veljko & Kalinić, Zoran, 2017. "A SEM-neural network approach for predicting antecedents of m-commerce acceptance," International Journal of Information Management, Elsevier, vol. 37(2), pages 14-24.
    26. Carla Gonzales-Gemio & Claudio Cruz-Cázares & Mary Jane Parmentier, 2020. "Responsible Innovation in SMEs: A Systematic Literature Review for a Conceptual Model," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muntaser Hamdouna & Mariya Khmelyarchuk, 2025. "Technological Innovations Shaping Sustainable Competitiveness—A Systematic Review," Sustainability, MDPI, vol. 17(5), pages 1-45, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Memon, Khalid Rasheed & Ooi, Say Keat, 2023. "Identifying digital leadership's role in fostering competitive advantage through responsible innovation: A SEM-Neural Network approach," Technology in Society, Elsevier, vol. 75(C).
    2. Marcos Carchano & Inmaculada Carrasco & Angela González, 2025. "Examining environmental proactivity in the Spanish wine industry: The moderating role of size," Agribusiness, John Wiley & Sons, Ltd., vol. 41(1), pages 127-157, January.
    3. Szerb, László & Komlósi, Éva, 2025. "A hazai kis- és középvállalkozások növekedési konfigurációi [Growth configurations among Hungarian SMEs]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 842-874.
    4. Assunta Di Vaio & Rohail Hassan & Gabriella D’Amore & Riccardo Tiscini, 2024. "Responsible innovation and ethical corporate behavior in the Asian fashion industry: A systematic literature review and avenues ahead," Asia Pacific Journal of Management, Springer, vol. 41(3), pages 1129-1173, September.
    5. Keonhyeong Lee & Liyuan Wang, 2023. "Chinese High-Tech Export Performance: Effects of Intellectual Capital Mediated by Dynamic and Risk Management Capabilities," SAGE Open, , vol. 13(1), pages 21582440231, February.
    6. Lu Chen & Ming Yuan & Han Lin & Yilong Han & Youyou Yu & Caihui Sun, 2023. "Organizational improvisation and corporate green innovation: A dynamic capability perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5686-5701, December.
    7. Mohammad Wasiq & Mustafa Kamal & Nazim Ali, 2023. "Factors Influencing Green Innovation Adoption and Its Impact on the Sustainability Performance of Small- and Medium-Sized Enterprises in Saudi Arabia," Sustainability, MDPI, vol. 15(3), pages 1-22, January.
    8. Colin B. Gabler & Omar S. Itani & Raj Agnihotri, 2023. "Activating Corporate Environmental Ethics on the Frontline: A Natural Resource-Based View," Journal of Business Ethics, Springer, vol. 186(1), pages 63-86, August.
    9. Maja Pervan & Marijana Curak & Tomislava Pavic Kramaric, 2017. "The Influence of Industry Characteristics and Dynamic Capabilities on Firms’ Profitability," IJFS, MDPI, vol. 6(1), pages 1-19, December.
    10. Hong Tian & Jiahui Tian, 2021. "The Mediating Role of Responsible Innovation in the Relationship between Stakeholder Pressure and Corporate Sustainability Performance in Times of Crisis: Evidence from Selected Regions in China," IJERPH, MDPI, vol. 18(14), pages 1-17, July.
    11. Younès El Manzani & Jean Jack Cegarra, 2023. "The complementary effect of quality management and proactive market orientation on radical product innovation under environmental uncertainty," Post-Print hal-04182964, HAL.
    12. Nadia Zahoor & Huda Khan & Zaheer Khan & Pervaiz Akhtar, 2024. "Responsible innovation in emerging markets’ SMEs: The role of alliance learning and absorptive capacity," Asia Pacific Journal of Management, Springer, vol. 41(3), pages 1175-1209, September.
    13. Ameer, Farah & Khan, Naveed R., 2023. "Green entrepreneurial orientation and corporate environmental performance: A systematic literature review," European Management Journal, Elsevier, vol. 41(5), pages 755-778.
    14. Carla Gonzales-Gemio & Claudio Cruz-Cázares & Mary Jane Parmentier, 2020. "Responsible Innovation in SMEs: A Systematic Literature Review for a Conceptual Model," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    15. Xiao Zhang & Luqun Xie & Jiatao Li & Li Cheng, 2022. "“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 709-722, June.
    16. Bashar Barakat & Marwan Milhem & Gehad Mohammed Ahmed Naji & Mohammed Alzoraiki & Habsah Binti Muda & Ali Ateeq & Zahida Abro, 2023. "Assessing the Impact of Green Training on Sustainable Business Advantage: Exploring the Mediating Role of Green Supply Chain Practices," Sustainability, MDPI, vol. 15(19), pages 1-21, September.
    17. Endah Rahayu Lestari & Nimas Mayang Sabrina Sunyoto, 2023. "Fostering green innovation in achieving sustainable performance," Natural Resources Forum, Blackwell Publishing, vol. 47(3), pages 413-434, August.
    18. John Mugambwa Serumaga-Zake & John Andrew van der Poll, 2021. "Addressing the Impact of Fourth Industrial Revolution on South African Manufacturing Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 13(21), pages 1-31, October.
    19. Abdullah F. Alnaim & Nadia Abdelhamid Abdelmegeed Abdelwahed & Bahadur Ali Soomro, 2022. "Environmental Challenges and Green Innovation Strategy: A Vigorous Development of Greener Dynamics," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    20. Noorliza Karia, 2022. "Antecedents and Consequences of Environmental Capability towards Sustainability and Competitiveness," Sustainability, MDPI, vol. 14(19), pages 1-16, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:33:y:2024:i:4:p:2712-2730. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.