"Sustainable Innovation Strategies and Firm Performance: Evidence from the Italian Food Industry" by Francesco Maria Gentile (joint with Carmine Garzia, Patrizia Gazzola and Edoardo Slerca)

Topic

Today, innovation strategies must go beyond the search for competitive advantage and embed sustainability into the firm’s strategic processes. A key challenge for manufacturing firms, particularly in the food industry, is integrating innovation and sustainability for long-term growth. Therefore, this study analyzes the sustainability and innovation decisions of 150 Italian food companies selected from a monitored sample of 444 firms across diverse sectors and sizes. Sustainability in the food industry is essential, requiring firms to manage pollutant emissions, optimize resource use, and reduce food waste. In parallel, consumers increasingly base their purchasing decisions on the sustainability profile of firms. This study shows that firms that formalize their sustainability strategies and actively communicate their efforts externally achieve superior growth. Top performers not only embrace sustainability, but also pioneer radical innovations in production processes, accelerating their transition to more resilient, sustainable business models.