Sustainability-oriented innovation and organizational performance: the moderating effect of intergenerational authority in craft SMEs in Latin America.

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Authors: Avolio, Beatrice1,2 (AUTHOR) bavolio@pucp.pe, Pardo, Eduardo1,2 (AUTHOR), García, Ana3 (AUTHOR)
Source: Small Enterprise Research. Apr2025, Vol. 32 Issue 1, p92-116. 25p.
Subject Terms: *Artificial neural networks, *Financial performance, *Organizational change, *Small business, Family relations
Abstract: This study examines the relationship between sustainability-oriented innovation (SOI) and both financial and non-financial performance in 172 craft SMEs in a Latin American country, focusing on the moderating role of intergenerational authority. Using PLS-SEM, findings show that SOI positively influences financial and non-financial performance. Additionally, intergenerational authority had a moderating effect on the relationship between SOI and financial performance. As intergenerational authority decreases, the relationship between SOI and financial performance becomes stronger. Finally, artificial neural network (ANN) captured the most important SOI dimensions to predict financial and non-financial performance, respectively. Organizational innovation emerged as the most effective SOI dimension to predict financial and non-financial performance in craft SMEs. The study contributes to the understanding of how the dynamics between family members play a crucial role in the ability of SOI to produce financial outcomes in craft SMEs. [ABSTRACT FROM AUTHOR]
Database: Entrepreneurial Studies Source
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  Data: <searchLink fieldCode="AR" term="%22Avolio%2C+Beatrice%22">Avolio, Beatrice</searchLink><relatesTo>1,2</relatesTo> (AUTHOR)<i> bavolio@pucp.pe</i><br /><searchLink fieldCode="AR" term="%22Pardo%2C+Eduardo%22">Pardo, Eduardo</searchLink><relatesTo>1,2</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22García%2C+Ana%22">García, Ana</searchLink><relatesTo>3</relatesTo> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Small+Enterprise+Research%22">Small Enterprise Research</searchLink>. Apr2025, Vol. 32 Issue 1, p92-116. 25p.
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  Data: *<searchLink fieldCode="DE" term="%22Artificial+neural+networks%22">Artificial neural networks</searchLink><br />*<searchLink fieldCode="DE" term="%22Financial+performance%22">Financial performance</searchLink><br />*<searchLink fieldCode="DE" term="%22Organizational+change%22">Organizational change</searchLink><br />*<searchLink fieldCode="DE" term="%22Small+business%22">Small business</searchLink><br /><searchLink fieldCode="DE" term="%22Family+relations%22">Family relations</searchLink>
– Name: Abstract
  Label: Abstract
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  Data: This study examines the relationship between sustainability-oriented innovation (SOI) and both financial and non-financial performance in 172 craft SMEs in a Latin American country, focusing on the moderating role of intergenerational authority. Using PLS-SEM, findings show that SOI positively influences financial and non-financial performance. Additionally, intergenerational authority had a moderating effect on the relationship between SOI and financial performance. As intergenerational authority decreases, the relationship between SOI and financial performance becomes stronger. Finally, artificial neural network (ANN) captured the most important SOI dimensions to predict financial and non-financial performance, respectively. Organizational innovation emerged as the most effective SOI dimension to predict financial and non-financial performance in craft SMEs. The study contributes to the understanding of how the dynamics between family members play a crucial role in the ability of SOI to produce financial outcomes in craft SMEs. [ABSTRACT FROM AUTHOR]
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        Value: 10.1080/13215906.2025.2514205
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      – Code: eng
        Text: English
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        Type: general
      – SubjectFull: Financial performance
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      – SubjectFull: Organizational change
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      – SubjectFull: Small business
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      – SubjectFull: Family relations
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      – TitleFull: Sustainability-oriented innovation and organizational performance: the moderating effect of intergenerational authority in craft SMEs in Latin America.
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            NameFull: Pardo, Eduardo
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              Text: Apr2025
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