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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

The Effect of Sustainability Innovation, Organizational Learning on Firm Performance with Competitive Advantage as Moderation

Panji Priyanto, Etty Murwaningsari

http://dx.doi.org/10.6007/IJARAFMS/v12-i1/10832

Open access

Purpose: The dynamics of Industry 4.0, globalization and economic turmoil have urged organizations to learn and adapt to accelerate performance and remain competitive. Companies are looking for strategies to ensure that their organizations thrive in a hypercompetitive environment. This research investigates the significance of sustainability innovations and organizational learning to achieve superior firm performance with a competitive advantage as a mediating variable. Originality/value: Bibliometric studies show that the study of Sustainability innovations aimed at business areas are still rare. Therefore, the potential of this research is to make management aware as policymakers in the organization of the urgency to create sustainable innovations to be able to compete and achieve better firm performance. Design/methodology/approach: This study was collected using a survey; Then, an integrative research model was made to analyze the relationship using structural equation modelling with partial least squares (PLS) using the snowball sampling method to reach more respondents. The sample of this research is the financial and manufacturing sector companies in Indonesia. Findings: Sustainability innovation, organizational learning, and competitive advantage have a significant effect on company performance. Sustainability innovation has a positive but not significant effect on company performance with a competitive advantage as moderating. Sustainability of innovation and change related to management who has company knowledge to provide experience to the company can support its performance and potentially create a competitive advantage among its competitors, which will affect the achievement of better performance.

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In-Text Citation: (Priyanto & Murwaningsari, 2022)
To Cite this Article: Priyanto, P., & Murwaningsari, E. (2022). The Effect of Sustainability Innovation, Organizational Learning on Firm Performance with Competitive Advantage as Moderation. International Journal of Academic Research in Accounting Finance and Management Sciences, 12(1), 257–275.