Organizational innovation, business performance, and sustainability practices of selected manufacturing companies: Basis for development of sustainable performance framework

International Journal of Research Studies in Management
CollabWritive Special Issue
2025 Volume 13 Issue 1

Available Online: 12 March 2025

Author/s:

Montalbo, Norxine L.
Graduate School, Lyceum of the Philippines University – Batangas, Philippines (norxinemontalbo@g.batstate-u.edu.ph)

Abstract:

The purpose of this paper is to create a framework that will be used as guide by various manufacturing industries in CALABARZON area in performing their work. The framework was anchored on the three variables of organizational innovation, business performance, and sustainability practices that will serve as the basis of the performance of the organization. A total of 400 respondents answered the research instrument with a Cronbach Alpha Value of 0.858 making it reliable for the study. In interpreting the data, the result of Shapiro-Wilk Test showed that p-values of all variables were less than 0.05 which means that the data set was not normally distributed; therefore, Spearman rho was used as part of the non-parametric tests to determine the significant relationship. Based on the findings, organizations may preserve a competitive edge, increase customer value, and improve operational efficiency by deliberately adopting innovation. This will help them to expand sustainably and succeed in the long run. Evaluating business success in terms of operational performance, business growth, and customer relationship management provides a comprehensive understanding of organizational effectiveness as these components build a strong basis for overall performance, enabling companies to meet their goals and prosper in a cutthroat market. Manufacturing companies are actively implementing sustainability practices within their operations. Businesses that integrate sustainability into their operations, whether social, economic, or environmental, offer significant improvements in customer relations, growth, and operational efficiency. All variables (innovation strategy, value creation, and competitive advantage) have strong positive correlations with business performance indicators (CRM, business growth, and operational performance), thus focusing on innovation, value creation, and competitive advantage that lead to substantial improvements in performance metrics. A performance framework was developed to enhance overall sustainable performance and to better align with the current trends and challenges in today’s manufacturing industry.

Keywords: business performance, industry 4.0, manufacturing industry, organizational innovation, sustainability practices

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DOI: https://doi.org/10.5861/ijrsm.2025.25016

Cite this article:
Montalbo, N. L. (2025). Organizational innovation, business performance, and sustainability practices of selected manufacturing companies: Basis for development of sustainable performance framework. International Journal of Research Studies in Management, 13(1), 225-240. https://doi.org/10.5861/ijrsm.2025.25016