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

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

Rafael Ignacio Perez-Uribe (EAN University, Colombia), David Ocampo-Guzman (EAN University, Colombia), Fabio Moscoso-Duran (EAN University, Colombia) and Maria Pilar Ramirez-Salazar (EAN University, Colombia)
DOI: 10.4018/978-1-7998-4909-4.ch019
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Abstract

This work aims to present the results of the application of the RISE model (innovation and business sustainability route) in 25 global purpose-driven micro, small, and medium-sized Bogotanas companies, beneficiaries of the Innova District project and its impact on the net margin. The working hypothesis is the management of innovation and sustainability has some impact on the net margin of the global purpose-driven micro, small, and medium-sized Bogotanas enterprises. It is a preliminary analysis, the findings and conclusions that were made based on the description of results and development of polynomial regressions only generated conclusive elements for the population of companies analyzed and the characteristics of the research proposed. However, the proposed hypothesis was verified for a group of companies, while, for a second group, the correlation between innovation and sustainability and the net margin was relatively low or almost nil.
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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.

Key Terms in this Chapter

EC: Economic dimension.

SD: Social dimension.

MSMEs: Micro, small, and medium enterprises.

Core Business: It is the main activity for which an organization exists. Activity that has the capacity to generate value and that is essential to achieve a competitive advantage of great benefit to the company.

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