An Examination of the Nexus among Innovation Capability, Market Learning Capability, and Sustainable Entrepreneurship within Industrial Firms

Document Type : Original Article

Authors
Zohreh Abolfazli 1
Maryam Taghvaee Yazdi 2
Mahsa Gholamhosseinzadeh 2
1 Master’s Degree, Department of Entrepreneurship, New Business Specialization, Sari Branch, Islamic Azad University, Sari, Iran
2 Department of Educational Management, Sari Branch, Islamic Azad University, Sari, Iran
10.22034/jmek.2025.523158.1176
Abstract
The primary objective of this study is to investigate the relationship between innovation capability, market learning capability, and sustainable entrepreneurship in industrial companies located in the Sari Industrial Estate, Phase 1, Iran. This research is applied in purpose and employs a descriptive-correlational design. The statistical population comprised 180 CEOs of industrial firms. Based on the Krejcie and Morgan table, a sample of 118 participants was selected using simple random sampling. Data were collected utilizing standardized questionnaires measuring innovation capability (innovation culture, knowledge utilization, leadership, individual innovation capability, and innovative structures), market learning capability (market understanding, competitor orientation, and customer orientation), and sustainable entrepreneurship. Data analysis was performed using descriptive statistics and the Spearman correlation test in SPSS version 23. The results of the hypothesis testing demonstrated a direct, positive, and statistically significant relationship (p < 0.05) between the dimensions of innovation capability and market learning capability with sustainable entrepreneurship. Specifically, higher levels of innovation culture, knowledge utilization, and market understanding strongly correlate with enhanced sustainable entrepreneurial outcomes. The study concludes that fostering innovation capabilities and market learning serves as a key strategic driver for achieving sustainable entrepreneurship in small and medium-sized industrial enterprises. Managers and policymakers should prioritize cultivating a culture of creativity and market-oriented strategies to ensure long-term economic, social, and environmental sustainability.

Highlights

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Achi, A., Salinesi, C., & Viscusi, G. (2016). Innovation capacity and the role of information systems: A qualitative study. Journal of Management Analytics, 3(4), 333–360. https://doi.org/10.1080/23270012.2016.1239228

Ardito, L. (2023). The influence of firm digitalization on sustainable innovation performance and the moderating role of corporate sustainability practices: An empirical investigation. Business Strategy and the Environment, 32(8), 5252–5272. https://doi.org/10.1002/bse.3415

Avelar, S., Borges-Tiago, T., Almeida, A., & Tiago, F. (2024). Confluence of sustainable entrepreneurship, innovation, and digitalization in SMEs. Journal of Business Research, 170, 114346. https://doi.org/10.1016/j.jbusres.2023.114346

Ben Youssef, A., Boubaker, S., & Omri, A. (2018). Entrepreneurship and sustainability: The need for innovative and institutional solutions. Technological Forecasting and Social Change, 129, 232–241. https://doi.org/10.1016/j.techfore.2017.11.003

Farny, S., & Binder, J. K. (2021). Sustainable entrepreneurship. In L. P. Dana (Ed.), World encyclopedia of entrepreneurship (2nd ed., pp. 605–611). Edward Elgar Publishing. https://doi.org/10.4337/9781839104145.00076

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610. https://doi.org/10.1177/001316447003000308

O’Cass, A., & Sok, P. (2014). The role of intellectual resources, product innovation capability, reputational resources and marketing capability combinations in firm growth. International Small Business Journal: Researching Entrepreneurship, 32(8), 996–1018. https://doi.org/10.1177/0266242613480225

Muñoz, P., & Cohen, B. (2018). Sustainable entrepreneurship research: Taking stock and looking ahead. Business Strategy and the Environment, 27(3), 300–322. https://doi.org/10.1002/bse.2000

Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: Categories and interactions. Business Strategy and the Environment, 20(4), 222–237. https://doi.org/10.1002/bse.682

Sulistyo, H., & Ayuni, S. (2020). Competitive advantages of SMEs: The roles of innovation capability, entrepreneurial orientation, and social capital. Contaduría y Administración, 65(1), 1–18. https://doi.org/10.22201/fca.24488410e.2020.1983

Weerawardena, J. (2003). Exploring the role of market learning capability in competitive strategy. European Journal of Marketing, 37(3/4), 407–429. https://doi.org/10.1108/03090560310459023

Zheng, S., Ye, X., Guan, W., Yang, Y., Li, J., & Li, B. (2022). Assessing the Influence of Green Innovation on the Market Performance of Small- and Medium-Sized Enterprises. Sustainability, 14(20), 12977. https://doi.org/10.3390/su142012977  

 

Keywords
Innovation Capability
Market Learning Capability
Sustainable Entrepreneurship
Industrial Companies
Industrial Town
Subjects

 

Achi, A., Salinesi, C., & Viscusi, G. (2016). Innovation capacity and the role of information systems: A qualitative study. Journal of Management Analytics, 3(4), 333–360. https://doi.org/10.1080/23270012.2016.1239228
Ardito, L. (2023). The influence of firm digitalization on sustainable innovation performance and the moderating role of corporate sustainability practices: An empirical investigation. Business Strategy and the Environment, 32(8), 5252–5272. https://doi.org/10.1002/bse.3415
Avelar, S., Borges-Tiago, T., Almeida, A., & Tiago, F. (2024). Confluence of sustainable entrepreneurship, innovation, and digitalization in SMEs. Journal of Business Research, 170, 114346. https://doi.org/10.1016/j.jbusres.2023.114346
Ben Youssef, A., Boubaker, S., & Omri, A. (2018). Entrepreneurship and sustainability: The need for innovative and institutional solutions. Technological Forecasting and Social Change, 129, 232–241. https://doi.org/10.1016/j.techfore.2017.11.003
Dehghan, N., Dehghan, F., & Fathi, S. (2012). Explaining and testing the strategy of interactions among learning, innovation, and sustainable competitive advantage. Strategic Management Studies, 9, 133–155. [In Persian]
Farny, S., & Binder, J. K. (2021). Sustainable entrepreneurship. In L. P. Dana (Ed.), World encyclopedia of entrepreneurship (2nd ed., pp. 605–611). Edward Elgar Publishing. https://doi.org/10.4337/9781839104145.00076
Khan, M., Ahmad, S., & Rahman, A. (2025). Market learning and organizational agility: Implications for sustainable entrepreneurship in developing economies. International Journal of Entrepreneurship, 20(1), 78–95. [In Persian]
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610. https://doi.org/10.1177/001316447003000308
Muñoz, P., & Cohen, B. (2018). Sustainable entrepreneurship research: Taking stock and looking ahead. Business Strategy and the Environment, 27(3), 300–322. https://doi.org/10.1002/bse.2000
O’Cass, A., & Sok, P. (2014). The role of intellectual resources, product innovation capability, reputational resources and marketing capability combinations in firm growth. International Small Business Journal: Researching Entrepreneurship, 32(8), 996–1018. https://doi.org/10.1177/0266242613480225
Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: Categories and interactions. Business Strategy and the Environment, 20(4), 222–237. https://doi.org/10.1002/bse.682
Sulistyo, H., & Ayuni, S. (2020). Competitive advantages of SMEs: The roles of innovation capability, entrepreneurial orientation, and social capital. Contaduría y Administración, 65(1), 1–18. https://doi.org/10.22201/fca.24488410e.2020.1983
Weerawardena, J. (2003). Exploring the role of market learning capability in competitive strategy. European Journal of Marketing, 37(3/4), 407–429. https://doi.org/10.1108/03090560310459023
Zheng, S., Ye, X., Guan, W., Yang, Y., Li, J., & Li, B. (2022). Assessing the influence of green innovation on the market performance of small- and medium-sized enterprises. Sustainability, 14(20), 12977. https://doi.org/10.3390/su142012977
Management, Economics and Entrepreneurship Studies
Volume 6, Issue 2
Spring 2025
Pages 64-75

  • Receive Date 01 March 2025
  • Revise Date 26 April 2025
  • Accept Date 13 June 2025