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Exploring the reality of corporate sustainability strategy and sales performance in entrepreneurial SMEs: the mediating effect of innovation and sustainability performance

Author

Listed:
  • Mercedes Rubio-Andrés

    (Complutense University of Madrid)

  • Santiago Gutiérrez-Broncano

    (Castilla La Mancha University)

  • Jorge Linuesa-Langreo

    (Castilla La Mancha University)

  • Miguel Ángel Sastre-Castillo

    (Complutense University of Madrid)

Abstract

Incorporating sustainability into a company’s strategy is crucial for long-term success. This involves considering environmental, social and economic factors when making strategic decisions. This study investigates how implementing a corporate sustainability strategy (CSS) affects the sales performance of small and medium-sized enterprises (SMEs). It focuses specifically on how innovation and sustainability performance individually and sequentially mediate this relationship. Furthermore, we analyse the moderating effect of ICT strategy on the relationship between CSS and innovation. We collected data from 1,113 surveys on managers of Spanish entrepreneurial SMEs and analysed them using partial least squares structural equation modelling (PLS-SEM). Our findings suggest that both innovation and sustainability performance mediate the positive relationship between CSS and sales performance. We confirm ICT strategy as a moderating variable, enhancing innovation to a greater degree in firms that are more concerned about sustainability.

Suggested Citation

  • Mercedes Rubio-Andrés & Santiago Gutiérrez-Broncano & Jorge Linuesa-Langreo & Miguel Ángel Sastre-Castillo, 2025. "Exploring the reality of corporate sustainability strategy and sales performance in entrepreneurial SMEs: the mediating effect of innovation and sustainability performance," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-34, December.
    • Handle: RePEc:spr:intemj:v:21:y:2025:i:1:d:10.1007_s11365-025-01102-8
    DOI: 10.1007/s11365-025-01102-8
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