Technological innovations for sustainable business success: enhancing processes and performance

Abstract

Purpose Technological innovation has the potential to consolidate and create more conscious investment strategies, opening new avenues for both local and foreign investors. Despite many efforts within firms towards business process efficiency, research on comprehensive strategies embedding digital tools is still in the early stages. This study examines how environment-friendly and sustainable investors across the European Union (EU) can leverage technology and digital innovation to enhance sustainable business processes and financial performance. Design/methodology/approach The methodology is based on robust regression and dynamic GMM models, cluster analysis using the Ward method and network analysis through Gaussian graphical models. The data are extracted from the European Innovation Scoreboard and cover 27 EU countries from 2016 to 2023. Findings The empirical findings provide a viable path for investors to actively plan a strategic layout to improve the adaptation of technological innovation and achieve a broader perspective of sustainable business practices, with positive spillovers on financial performance and environmental sustainability. Practical implications Lessons are learnt from the multiple and diverse connections between the analysed dimensions. Firms and policymakers should embed levers in their strategies/policies that enhance the use of information technology and stimulate competitiveness in science, with a keen focus on human resources. Originality/value The study stands out through the advanced modelling techniques applied to offer detailed insights into the relationship between technological innovation, sustainable firm investments and performance for specific groups of innovators in the EU.

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