Innovation and Sustainability Management as a Key Factor in Global Purpose-Driven Micro, Small, and Medium-Sized Bogotanas Companies: Its Impact on Financial Results in MSMEs

Introduction

In this chapter, the authors will expose the results obtained by thorough organizational diagnoses that took place in 25 micro, small and medium sized enterprises (MSMEs) located in Bogotá, Colombia. These MSMEs were beneficiaries of a local government programme designed by the Office of the Mayor of Bogotá known as Distrito Innova, programme designed to help local entrepreneurs transform their endeavors into competitive companies, known as Global- Purpose Driven companies.

By the same token, EAN University¹ has devoted years of efforts and resources to study the genesis of Colombian and Bogotá´s MSMEs. Such efforts have come to fruition in the form of the design of several business and organizational assessment models, one of which has been coined as the RISE Model (Route for Innovative and Sustainable Enterprises).

Hence, the authors’ purpose with this chapter is to analyze the results obtained by means of assessing these 25 MSMEs by dint of the RISE model and thereby get a more crystal clear idea of what managerial factors can contribute or hamper a company’s competitiveness, factors that include innovation, an element that has tremendous influence in competitiveness and organizational sustainability.

Once the 25 companies were assessed through the RISE model, a polynomial regression analysis was undertaken to try and prove the hypothesis “innovation and sustainability have an impact in the net profit margin.”

Current and future challenges within the realm of sustainable innovation are examined, explaining why corporate sustainability appeals to all types of business models, whether it is commercial, managerial, financial, environmental and/or social, they are all linked and susceptible to the concept of corporate sustainability, a concept that not only creates and maintains an organization’s financial value, but it allows an organization to truly understand how its actions affect the environment, and how to best address those effects.