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Sustainable innovation among small businesses: The role of digital orientation, the external environment, and company characteristics

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  • Mina Nasiri
  • Minna Saunila
  • Tero Rantala
  • Juhani Ukko

Abstract

This study aimed to identify the internal and external environments of a company that affect sustainable innovation in such small enterprises by examining the circumstances under which small enterprises are likely to engage in sustainable innovation. The results of this study demonstrate that companies with high levels of digital orientation in their operations contributed more to sustainable innovation than those without such high levels. In addition, in the external environment, factors that include market and technological turbulence have a negative effect on sustainable innovation. However, the adoption of sustainable innovation was not significantly impacted by market turbulence. Furthermore, certain company characteristics, such as size and maturity, do not determine the contribution of a company's internal and external environments to sustainable innovation.

Suggested Citation

  • Mina Nasiri & Minna Saunila & Tero Rantala & Juhani Ukko, 2022. "Sustainable innovation among small businesses: The role of digital orientation, the external environment, and company characteristics," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 703-712, August.
    • Handle: RePEc:wly:sustdv:v:30:y:2022:i:4:p:703-712
    DOI: 10.1002/sd.2267
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    Cited by:

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    2. Maryna Brychko & Yuriy Bilan & Serhiy Lyeonov & Dalia Streimikiene, 2023. "Do changes in the business environment and sustainable development really matter for enhancing enterprise development?," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 587-599, April.
    3. Marcin Suder, 2025. "Determinant or moderator? Exploring the role of the external environment in the relationship between dimensions of entrepreneurial orientation and firm performance. Evidence from the hotel industry," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-53, December.
    4. Yan He & Zhaoshu Liu & Min-Jae Lee, 2024. "Navigating Sustainable Value Creation Through Digital Leadership Under Institutional Pressures: The Moderating Role of Environmental Turbulence," Sustainability, MDPI, vol. 16(21), pages 1-16, October.
    5. Jian Chen & Nuttawut Rojniruttikul, 2025. "Influence of a Green Environmental Orientation on Corporate Sustainable Performance in the Manufacturing Sector," Sustainability, MDPI, vol. 17(6), pages 1-18, March.
    6. Xingmin Yin & Yunqian Yuan & Jinglin Zhou, 2024. "Evaluation and optimization of business environment based on sustainable development perspective: Exploring the role of the reform of government functions," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 138-152, February.
    7. Morgan Alamandi, 2025. "Sustainable Innovation Management: Balancing Economic Growth and Environmental Responsibility," Sustainability, MDPI, vol. 17(10), pages 1-31, May.
    8. Aleksandr Ključnikov & Mehmet Civelek & Václav Kupec & Natálie Bruder Badie, 2025. "Breaking down entrepreneurial barriers: exploring the nexus of entrepreneurial behavior, innovation, and bank credit access through the lens of the theory of planned behavior," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-35, December.
    9. Kari Lepistö & Minna Saunila & Juhani Ukko, 2023. "The effects of soft total quality management on the sustainable development of SMEs," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2797-2813, August.
    10. Rousselière, Damien & Bouchard, Marie J. & Rousselière, Samira, 2024. "How does the social economy contribute to social and environmental innovation? Evidence of direct and indirect effects from a European survey," Research Policy, Elsevier, vol. 53(5).
    11. Luis Francisco Miranda & Minna Saunila & Claudio Cruz‐Cázares & Juhani Ukko, 2024. "Business digitalisation as a driver of environmental and economic sustainability in micro, small, and medium‐sized enterprises," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7036-7050, December.
    12. Ma, Dechao & Wu, Weiwei, 2024. "Does artificial intelligence drive technology convergence? Evidence from Chinese manufacturing companies," Technology in Society, Elsevier, vol. 79(C).

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