The effect of innovation and sustainability ethics on reputation: a moderating role of social media

Purpose - This study aims to examine the role of innovation and sustainability ethics on an organization’s reputation, and to explore how sustainability ethics can mediate the relationship between innovation and reputation. It also seeks to determine whether social media strengthens this relationship. Design/methodology/approach - A cross-sectional technique was used to analyze 96 validated questionnaires. Data were collected from CEOs of manufacturing organizations using a simple random probability technique. Partial least squares and structural equation modeling statistical methods were applied to analyze the data. Findings - The study found that sustainability ethics plays a mediating role between innovation and reputation. Furthermore, it was observed that innovation has a positive effect on sustainability ethics, which in turn has a significant impact on reputation. In addition, the study noted that social media moderates these relationships. Research limitations/implications - Despite its contributions, this paper has several limitations. It focuses solely on the manufacturing sector; future research could explore other sectors, such as services or finance, which may have distinct characteristics. In addition, this study proposes a single independent variable; future studies could incorporate additional variables, such as cultural factors or government support, to provide a broader understanding of the dynamics involved. Furthermore, the sample consists solely of CEOs, and responses may be biased. Future research could consider including employees as respondents to offer a more holistic perspective. Practical implications - This paper deepens our understanding of the outcomes of sustainability ethics and highlights the crucial role of innovation in shaping reputation. It advises owners to reconsider their approach to innovation, as it impacts sustainability ethics and reputation. Cultivating an innovative culture influences employees to think creatively and share new ideas. Organizations should hire innovative and skilled workers and offer them social media marketing courses. It is recommended that leaders engage closely with clients and suppliers, encouraging communication through social media for valuable feedback. The integration of ethical considerations into sustainability ethics ensures that businesses contribute positively to society and the environment. This ethical dimension is essential for enterprises aiming to meet societal expectations. Originality/value - This study contributes to signaling theory by extending its domain and providing empirical evidence with respect to sustainability, social media, innovation and reputation, as these factors have not been examined comprehensively.