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Does Technological Innovation Drive Corporate Sustainability? Empirical Evidence for the European Financial Industry in Catching-Up and Central and Eastern Europe Countries

Author

Listed:
  • Francisca Sempere-Ripoll

    (Management Department, Universitat Politècnica de València, 46022 València, Spain)

  • Sofia Estelles-Miguel

    (Management Department, Universitat Politècnica de València, 46022 València, Spain)

  • Ronald Rojas-Alvarado

    (Gestión Organizacional, Universidad ICESI, Cl. 18 #122-135, Cali 760032, Colombia
    Escuela de Ciencias Básicas, Tecnología e Ingeniería, Universidad Universidad Nacional Abierta y a Distancia, Bogota 110111, Colombia)

  • Jose-Luis Hervas-Oliver

    (Management Department, Universitat Politècnica de València, 46022 València, Spain
    Unidad Permanente de Investigación, ESIC Business & Marketing School, 28223 Madrid, Spain
    Industrial Engineering Department, Universidad de la Costa, Cl. 58 ##55–66, Barraquilla 080001, Colombia)

Abstract

In the financial industry, two relationships are well-researched: (i) innovation and financial performance and, (ii) sustainability and financial performance, both focused primarily on Western and advanced countries. The relationship between innovation and sustainability, however, is underresearched. This study’s purpose consists of determining whether there is a relationship between innovation and corporate sustainability in the financial industry. In doing so, this study responds to a critical question: are the most innovative firms also the most sustainability-oriented? We empirically explore sustainability-oriented innovation in the financial industry of 11 catching-up countries in Central and Eastern Europe (CEE). Using Community Innovation Survey (CIS) data for 2012–2014, this study empirically analyzes a large sample of 1574 firms in the financial industry. Our results suggest that innovation is positively linked to corporate sustainability, pointing out that innovation capabilities are positively related to sustainability. Our study proposes a framework for analyzing innovation and sustainability from a capability-perspective.

Suggested Citation

  • Francisca Sempere-Ripoll & Sofia Estelles-Miguel & Ronald Rojas-Alvarado & Jose-Luis Hervas-Oliver, 2020. "Does Technological Innovation Drive Corporate Sustainability? Empirical Evidence for the European Financial Industry in Catching-Up and Central and Eastern Europe Countries," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2261-:d:332333
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