Innovation as a Mediator of the Relationship Between Corporate Sustainability and Organisational Performance: Evidence from Morocco

Abstract

At a time when social, environmental, and economic pressures are intensifying, companies are increasingly encouraged to rethink their governance and management practices in order to achieve sustainability and performance. Although the management literature recognizes the importance of corporate sustainability as a source of competitiveness, the mediating role of innovation in this relationship remains poorly understood, particularly in emerging markets. This research aims to fill this gap by focusing on the case of Morocco, and more specifically on how innovation mediates the impact of sustainability practices on corporate performance. The study adopts a holistic perspective on sustainability, encompassing economic, social, and environmental dimensions, and considers innovation as an organizational process that plays a transmitting role between sustainability and performance. The research adopts a quantitative method based on a questionnaire survey of managers of Moroccan companies from various sectors. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) to test: the direct effect of sustainability on performance (H1), the effect of sustainability on innovation (H2), the effect of innovation on performance (H3), the direct effects of economic sustainability (H4) and social sustainability (H5) on performance, and the mediating role of innovation (H6).