What do we know about the role of sustainable management in the context of innovativeness and firm performance?

Purpose This study aims to deepen the authors’ knowledge about sustainable management in the relationship between innovativeness and two dimensions of firm performance: firm competitiveness and firm growth. In particular, the mediating role of sustainable management is tested and analysed. Design/methodology/approach This study used structural equation modelling to examine a sample that consisted of 150 small and medium-sized enterprises that operated in the furniture industry in Poland. Findings The role of sustainable management depended on the dimension of performance. In the case of firm growth sustainable management played a mediating role. Innovativeness affected both firm growth and firm competitiveness and simultaneously affected sustainable management. The results also showed that sustainable management did not affect firm competitiveness but rather firm growth. Originality/value This work extends the authors’ knowledge about sustainable management in the context of innovation performance. In addition, the study focuses on small firms representing low-tech industry. The study revealed the mediating role of sustainable management in the relationship between innovativeness and firm growth. This finding contributes to entrepreneurship theory by extending the authors’ understanding of the impact of innovativeness on firm performance as well as the role of sustainable management in this relationship. The latter also adds value to the emerging field of sustainable entrepreneurship.