Role of strategic alliance and innovation on organizational sustainability

The purpose of this paper is to examine the role of strategic alliance (SA) and innovation on organizational sustainability using data from North American organizations listed in the Dunn-Bradstreet database. While organizational economic sustainability could be achieved in several ways, this research investigates the relationship of engagement in SA, product life cycle (PLC) and innovation with organizational sustainability from the perspective of the strategy-based balanced scorecard (BSC) that incorporates the mix of financial as well as environmental and social concerns in an environment.

This paper reports the results of an empirical study investigating the above relationships in Canadian and American organizations listed in the Dunn & Bradstreet database. The authors analyze the responses to the survey consisting of the questions about firm’s internal process, external environment, strategy, BSC perception and corporate performance of the companies who indicated that they use the BSC.

Consistent with the authors’ predictions, results show that there are positive and significant relationships between PLC and SA, between innovation and sustainability, and between innovation and SA (though positive but not significant), thus providing support for the hypotheses. Though the methodology the authors applied is acceptable in management accounting research, the authors recognize that there are limitations of this study and further studies are necessary before the results can be generalized.

This paper contributes to the literature by providing empirical evidence encompassing the areas of SA, innovation and performance leading toward sustainability.