Path of innovation to create sustainable organizational performance

Purpose Organizations are currently confronted with agile external dynamics, and achieving sustainable organizational performance requires the appropriate method. Therefore, this study aims to explain how innovation can achieve sustainable organizational performance, tracing the antecedents to produce a comprehensive model. Design/methodology/approach Based on previous studies, a cause-and-effect flow of thought to ascertain existing relationships between constructs as well as establish a coherent path was adopted. Participants consisted of 208 knowledge employees who worked in knowledge organizations in Indonesia. The proposed pathway was tested using structural equation modeling. Findings Sustainable organizational performance was realized through innovation driven by organizational learning. Meanwhile, this variable was realized through knowledge sharing, formed by organizational culture and strategic alliances. Sustainable performance is effectively achieved by an internal driver compared to an external driver. Research limitations/implications This study focused on 208 knowledge employees in knowledge organizations. This limitation led to weak generalization of the analysis. Practical implications The results offered substantial managerial insight, namely a pathway to coherently build sustainable organizational performance for comprehensive implementation. Social implications Innovation is a process that cannot be actualized instantly, due to the impact on internal organization, social aspects and external environment. This study contributes to resource savings and the realization of the sharing economy. Originality/value This study differs from previous analyses due to the coherent proposal of a path to build sustainable organizational performance and the constructs to enable proper application.