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Paper Type

ERF

Paper Number

1006

Description

Corporate sustainability is becoming an important component of corporate strategy, resulting in new areas of goal setting, planning, and process-level change. Despite the growing importance of corporate sustainability in organizations, there is a lack of research examining how the coexistence of corporate sustainability practices and a firm’s technology investment impacts critical processes such as innovation. In this study, we use resource orchestration theory and the information disclosure perspective to examine how the combination of a firm’s corporate sustainability efforts and technology investment can influence and impact a firm’s innovation process. Using a longitudinal data of S&P firms, from 2017 to 2020, we show that corporate sustainability performance, as reflected through ESG (environmental, social, and governance) measures, and technology investment positively impact a firm’s innovation process outcomes. Surprisingly however, the combination of these two individually contributing factors leads to a lower innovation performance. Implications for practitioners and academics are discussed. Keywords Corporate sustainability, ESG, innovation, information disclosure, resource orchestration, technology

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Aug 10th, 12:00 AM

The Impact of Corporate Sustainability and Technology Investment on Firm Innovation

Corporate sustainability is becoming an important component of corporate strategy, resulting in new areas of goal setting, planning, and process-level change. Despite the growing importance of corporate sustainability in organizations, there is a lack of research examining how the coexistence of corporate sustainability practices and a firm’s technology investment impacts critical processes such as innovation. In this study, we use resource orchestration theory and the information disclosure perspective to examine how the combination of a firm’s corporate sustainability efforts and technology investment can influence and impact a firm’s innovation process. Using a longitudinal data of S&P firms, from 2017 to 2020, we show that corporate sustainability performance, as reflected through ESG (environmental, social, and governance) measures, and technology investment positively impact a firm’s innovation process outcomes. Surprisingly however, the combination of these two individually contributing factors leads to a lower innovation performance. Implications for practitioners and academics are discussed. Keywords Corporate sustainability, ESG, innovation, information disclosure, resource orchestration, technology

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