Sustainability - Oriented Innovation and Performance of Small and Medium Enterprises in South Africa
The purpose of this study is to investigate the effect of sustainability-oriented innovation (SOI) on the performance of small and medium enterprises (SMEs) in South Africa. The study adopted a multi-dimensional measure of performance (financial, social, environmental, innovation and quality). The study used the quantitative research approach and the descriptive and causal research design. Data was collected from one hundred and ninety eight owners/managers of SMEs in the manufacturing sector. The cross-sectional survey method (self-administered questionnaire) was used for data collection. The participants in the study were conveniently sampled. Descriptive statistics, factor analysis, correlation and regression analysis were used for data analysis. The Cronbach’s alpha was used as a measure of reliability. The findings of the study indicate that economic, environmental and social dimensions of SOI have significant positive relationships with the five measures of performance. Limitations, areas for further study and recommendations to improve the SOI of SMEs are suggested.
 Adams, R., et al. 2016. Sustainability-oriented Innovation: A Systematic Review. International Journal of Management Reviews, 18: 180–205. DOI: https://doi.org/10.1111/ijmr.12068
 Aguilera-Caracuel, J., and Ortiz-de-Mandojana. N.2013. Green Innovation and Financial Performance: An Institutional Approach. Organization & Environment, 26: 365–385. DOI: https://doi.org/10.1177/1086026613507931
 Ahmedova, S. 2015. Factors for Increasing the Competitiveness of Small and Medium-Sized Enterprises (SMEs) In Bulgaria. Procedia—Social and Behavioral Sciences, 195: 1104 - 1112. DOI: https://doi.org/10.1016/j.sbspro.2015.06.155
 Alarape, A. 2013. Entrepreneurial orientation and the growth performance of small and medium enterprises in Southwestern Nigeria. Journal of Small Business & Entrepreneurship, 26: 553-577. DOI: https://doi.org/10.1080/08276331.2014.892308
 Amini, M., and Bienstock, C. 2014. Corporate sustainability: an integrative definition and framework to evaluate corporate practice and guide academic research. Journal of Cleaner Production, 76: 12 - 19. DOI: 10.1016/j.jclepro.2014.02.016
 Amores-Salvadó, J., and Navas-lópez. J. 2014. Green corporate image: Moderating the connection between environmental product innovation and ﬁrm performance. Journal of Cleaner Production, 83: 356–365. DOI: 10.1016/j.jclepro.2014.07.059
 Antunes, M., Quirós, J., and Justino, M. 2017. The relationship between innovation and total quality management and the innovation effects on organizational performance. International Journal of Quality & Reliability Management, 34: 1 - 29. DOI: 10.1108/IJQRM-02-2016-0025
 Barney, J. 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management, 17: 99–120. DOI: https://doi.org/10.1177/014920639101700108
 Caiado, R. et al. 2017. Measurement of sustainability performance in Brazilian organizations. International Journal of Sustainable Development & World Ecology, 1: 1 - 15. DOI: https://doi.org/10.1080/13504509.2017.1406875
 Cant, M., and Wiid, J. 2013. Establishing the Challenges Affecting South African SMEs. International. Business and Economics. Research Journal, 12: 707–716. DOI: 10.19030/iber.v12i6.7869
 Cantele, S., and Zardini, A. 2018. Is sustainability a competitive advantage for small businesses? An empirical analysis of possible mediators in the sustainability-ﬁnancial performance relationship. Journal of Cleaner Production, 182: 166 - 176. DOI: 10.1016/j.jclepro.2018.02.016
 Chiou, T., Chan., Lettice, F., and Chung, S. 2011. The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Logistics and Transportation Review, 47: 822 - 836. DOI: 10.1016/j.tre.2011.05.016
 Chong, G. 2008. Measuring performance of small-and-medium sized enterprises: the grounded theory approach. Journal of Business and Public Affairs, 3: 1 - 10.
 Ciegis, R., Ramanauskiene, J., and Martinkus, B. 2009. The Concept of Sustainable Development and its Use for Sustainability Scenarios. Inzinerine Ekonomika-Engineering Economics, 2: 28 - 37.
 Cordeiro, A., and Vieira. F. 2012. Innovation: A Strategy That Leads to Competitiveness In SMEs. Iberoamerican Journal of Industrial Engineering, 4: 146 - 162. DOI: 10.13084/2175-8018.v04n08a10
 Distanont, A., and Khongmalai K. 2018. The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 1: 1 - 7. DOI: https://doi.org/10.1016/j.kjss.2018.07.009
 Dogson, M., Gann, G., and Phillips, N. 2014. The Oxford Handbook of Innovation Management. Oxford University Press.
 Elkington, J. 1997. Cannibals with forks – Triple bottom line of 21st century business. New Society Publishers.
 Ezzi, F., and Jarboui, A. 2016. Does innovation strategy affect financial, social and environmental performance? Journal of Economics, Finance and Administrative Science, 2: 14 - 21. DOI: https://doi.org/10.1016/j.jefas.2016.03.001
 Freeman, E. 1984. Strategic Management: A stakeholder Approach. Pitman.
 Garay, L., Font, X., and Corrons, A. 2018. Sustainability-Oriented Innovation in Tourism: An Analysis Based on the Decomposed Theory of Planned Behavior. Journal of Travel Research, 1: 1 - 9. DOI: https://doi.org/10.1177/0047287518771215
 Ghassim, B. 2018. Sustainability-Oriented Innovation in the Minerals Industry: An Empirical Study on the Effect of Non-Geographical Proximity Dimensions. Sustainability, 10: 282 - 300. DOI: https://doi.org/10.3390/su10010282
 Goodman, J., Korsunova, A., and Halme. M. 2017. Our Collaborative Future: Activities and Roles of Stakeholders in Sustainability-Oriented Innovation. Business Strategy and the Environment, 26: 731 - 753. DOI: https://doi.org/10.1002/bse.1941
 Government Gazette of the Republic of South Africa. 2003. National Small Business Amendment Act. http://saflii.org/za/legis/num_act/nsbaa2003331.pdf (accessed August 15, 2018).
 Hansen, E., and Grosse-Dunker, F.2013. Sustainability-Oriented Innovation. Springer-Verlag.
 Hart, S. 1995. Natural-resource-based view of the firm. Academy of Management Review, 20: 986 - 1014.
 Hourneaux, F., Carneiro-da-Cunha, J., and Corrêa, H. 2017. Performance measurement and management systems: Different usages in Brazilian manufacturing companies. Managerial Auditing Journal, 32: 148 - 166. DOI: https://doi.org/10.1108/MAJ-11-2015-1277
 Kaplan, R., and Norton, D. 1992. The Balanced Scorecard: Measures that Drive Performance. Harvard Business Review, January-February: 71-79.
 Klewitz, J., and Hansen, E. 2014. Sustainability-Oriented Innovation of SMEs: A Systematic Review. Journal of Cleaner Production, 65: 57 - 75. DOI: http://dx.doi.org/10.1016/j.jclepro.2013.07.017
 Kogabayev, T., and Maziliauskas, A. 2017. The definition and classification of innovation. Holistica, 8: 59-72. DOI: https://doi.org/10.1515/hjbpa-2017-0005
 Krstić B., Sekulić, V., and Ivanović, V. 2014. How to Apply the Sustainability Balanced Scorecard Concept. Economic Themes, 52: 65 - 80. DOI 10.1515/ethemes-2014-0005
 Kuhl, M., Cunha, J., Macaneiro, M., and Cunha, S. 2016 Relationship between innovation and sustainable performance. International Journal of Innovation Management, 20: 1 - 17. DOI: 10.1142/S136391961650047X
 Little, D. 2014. Defining Sustainability in Meaningful Ways for Educators. Journal of Sustainability Education, 7: 1 - 18.
 Ma, Y., Guisheng, H., and Guisheng, X. 2017.Green Process Innovation and Innovation Beneﬁt: The Mediating Effect of Firm Image. Sustainability, 9: 1778 - 1792. doi:10.3390/su9101778
 Maletic, M., et al. 2016. Effect of sustainability-oriented innovation practices on the overall organisational performance: an empirical examination. Total Quality Management and Business Excellence, 9/10: 1171-1190. DOI: https://doi.org/10.1080/14783363.2015.1064767
 Mittelstaedt, D., Shultz, DJ., Kilbourne, WE., and Peterson, M. 2014. Sustainability as Megatrend: Two Schools of Macromarketing Thought, Journal of Macromarketing, 34(3): 1-12. https://journals.sagepub.com/doi/10.1177/0276146713520551
 Muhamad, N., Auzair, S., Amir, A., and Ismail, D. 2016. Measuring Sustainability Performance Measurement System. Acta Universitatis Danubius. OEconomica, 12(3): 182-199.
 Neneh, BN., and van Zyl, J. 2017. Entrepreneurial orientation and its impact on firm growth amongst SMEs in South Africa. Problems and Perspectives in Management, 15(3): 166 - 178. DOI: http://dx.doi.org/10.21511/ppm.15(3).2017.14
 Pandya, V.M. 2012. Comparative analysis of development of SMEs in developed and developing countries. The 2012 International Conference on Business and Management. 6-7 September 2012, Phuket, Thailand.
 Poussing, N. 2016. Investigating the role of Corporate Social Responsibility in the adoption of sustainability oriented innovation. RIODD 2016, Jul 2016, Saint-Étienne, France.
 Qorri, A., Mujkić, Z., and Kraslawski, A. 2018. A conceptual framework for measuring sustainability performance of supply chains. Journal of Cleaner Production, 189: 570 - 589. DOI: 10.1016/j.jclepro.2018.04.073
 Rahman, M., Daroodian, M., Kamarulzaman, Y., and Muhamad, N. 2015. Designing and Validating a Model for Measuring Sustainability of Overall Innovation Capability of Small and Medium-Sized Enterprises, Sustainability, 7(1): 537-562 DOI:10.3390/su7010537
 Rexhäuser, S., and Rammer, C. 2014. Environmental innovations and ﬁrm proﬁtability: Unmasking the Porter hypothesis. Environmental and Resource Economics, 57: 145-167. DOI: 10.1007/s10640-013-9671-x
 Saizarbitoria, H., and Azorin. M. 2011. ISO 14001 certiﬁcation and ﬁnancial performance: Selection-effect versus treatment-effect. Journal of Cleaner Production, 19: 1–12. DOI: 10.1016/j.jclepro.2010.09.002
 Schaltegger, S. and Wagner, M. 2011. Sustainable Entrepreneurship and Sustainability Innovation: Categories and Interactions. Business Strategy and the Environment, 20: 222–237. DOI: https://doi.org/10.1002/bse.682
 Schumpeter, J.A. 1934, The theory of economic development: an inquiry into profits, capital, credit, interest and the business cycle, Harvard Economic Studies, Cambridge, .
 Sebhatu, S.P. 2008. The challenges and opportunities in creating sustainable shared values at the base of the pyramid - Cases from sub-Saharan Africa, in Kandachar, P. and Halme, M. (Eds.) Sustainability challenges and solutions at the base-of-the-pyramid: Business, technology and the poor, Green Leaf Publishing, Sheffield, pp.146-162.
 Shashi; C., Centobelli, R., and Shabani, A. 2018. Sustainability orientation, supply chain integration, and SMEs performance: a causal analysis. Benchmarking: An International Journal, 25(9): 3679-3701. DOI: https://doi.org/10.1108/BIJ-08-2017-0236
 Simpson, P., Siguaw, S., and Enz, C. 2016. Innovation orientation outcomes: The good and the bad. Journal of Business Research, 59: 1133 - 1341. doi: 10.1016/j.jbusres.2006.08.001
 Van de Berg, U., Labuschagne, J., and Van de Berg, H.2013. The effects of greening the supplier and innovation on environmental performance and competitive advantage. Journal of Transport and Supply Chain Management, 7: 1 - 7.DOI:http://dx.doi.org/10.4102/ jtscm.v7i1.121
 Wagner, M. 2010. The role of corporate sustainability performance for economic performance: A ﬁrm-level analysis of moderation effects. Ecological Economics, 69: 1553 – 1560. DOI: 10.1016/j.ecolecon.2010.02.017
 Wentzel, L., and de Hart, K. 2015. Incentives for the manufacturing sector: what South Africa can learn from Malaysia and Singapore. Journal of Economic and Financial Sciences, 8: 105 – 24.
 Wu, W., Liu, Y., Chin, T., and Zhu, W. 2018. Will Green CSR Enhance Innovation? A Perspective of Public Visibility and Firm Transparency. International Journal Environmental Research and Public Health, 15: 1 - 14. DOI: 10.3390/ijerph15020268
 Yang, M., Hong, P., and Modi, S. 2011.Impact of Lean Manufacturing and Environmental Management on Business Performance: An Empirical Study of Manufacturing Firms. International Journal of Production Economics, 129: 251 – 261. DOI: 10.1016/j.ijpe.2010.10.017
The Copyright Transfer Form to ASERS Publishing (The Publisher)
This form refers to the manuscript, which an author(s) was accepted for publication and was signed by all the authors.
The undersigned Author(s) of the above-mentioned Paper here transfer any and all copyright-rights in and to The Paper to The Publisher. The Author(s) warrants that The Paper is based on their original work and that the undersigned has the power and authority to make and execute this assignment. It is the author's responsibility to obtain written permission to quote material that has been previously published in any form. The Publisher recognizes the retained rights noted below and grants to the above authors and employers for whom the work performed royalty-free permission to reuse their materials below. Authors may reuse all or portions of the above Paper in other works, excepting the publication of the paper in the same form. Authors may reproduce or authorize others to reproduce the above Paper for the Author's personal use or for internal company use, provided that the source and The Publisher copyright notice are mentioned, that the copies are not used in any way that implies The Publisher endorsement of a product or service of an employer, and that the copies are not offered for sale as such. Authors are permitted to grant third party requests for reprinting, republishing or other types of reuse. The Authors may make limited distribution of all or portions of the above Paper prior to publication if they inform The Publisher of the nature and extent of such limited distribution prior there to. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in The Paper. This agreement becomes null and void if and only if the above paper is not accepted and published by The Publisher, or is with drawn by the author(s) before acceptance by the Publisher.