The role of sustainable practices in boosting marketing innovation: the case of family SMEs

Purpose This study analyses the impact of environmental and social sustainability practices on marketing innovation and how the nature of family firms (FFs) moderates this relationship. Design/methodology/approach We draw upon data from 6,843 European companies, spanning 16 industries and 39 countries, obtained from Flash Eurobarometer 486 (European Commission, 2020). Four binary logistic regression models are adopted to assess the behaviour of the dependent variable, marketing innovation, and the independent variables, environmental sustainability and social sustainability, while also examining the interaction of the FF with environmental and social sustainability. Findings The results show that both environmental and social sustainability practices positively and significantly influence marketing innovation. Moreover, FFs that prioritise social sustainability are more likely to implement marketing innovations compared to non-FFs. These results highlight the role of social and environmental sustainability actions as drivers of marketing innovation in European companies. Additionally, the research shows the particularly relevant relationship between social sustainability and marketing innovation in FFs. Originality/value Whereas previous research has primarily concentrated on how marketing innovations impact sustainability, this study examines the less-understood influence of sustainability practices on marketing innovation, with a particular focus on small and medium-sized enterprises (SMEs) and FFs. In particular, we highlight the moderating role of family ownership in the sustainability-marketing innovation nexus, and suggest that marketing innovation can serve as a means through which social nonmarket strategies (such as social and environmental strategies) generate better business results.