Sustainable Innovation as a Driver of Economic Profitability

Abstract

This study examines the impact of sustainable innovations on the economic profitability of companies in a context where sustainability is becoming a strategic imperative. The main objective is to identify the key determinants of sustainable innovations that positively influence financial performance. The methodology is based on a multiple regression analysis conducted on a sample of 105 companies from various sectors, revealing significant results. The data are drawn from a reliable database and were analyzed using advanced statistical techniques. The results reveal significant relationships between several variables; three variables stand out particularly: engagement in social projects (β=0.366, p<0.05), the proportion of renewable energy used (β=0.464, p<0.01), and investment in sustainable research and development (β=0.259, p<0.05) contribute significantly to improving economic performance. The overall model explains 36% of the variance in profitability, demonstrating substantial predictive power. Our findings empirically confirm that the strategic integration of sustainable practices is not an additional cost but a genuine lever for profitability and competitive advantage, aligning with the theoretical frameworks of the triple bottom line and Porter and Kramer's shared value creation. The study also reveals that companies adopting a holistic approach to sustainability benefit from amplified synergistic effects. This research provides concrete managerial recommendations to optimize the integration of sustainable innovations into corporate strategy, particularly regarding resource allocation and prioritization of green investments. However, we acknowledge the methodological limitations related to the cross-sectional nature of the data and the geographical scope of the sample, which call for complementary longitudinal studies to consolidate these findings.

Classification JEL : O32

Paper type : Empirical Research