Sustainable management practices and innovation capacity in family agribusinesses

Abstract

Sustainability and innovation have gained increasing importance in the competitive landscape of organizations. Therefore, this study aimed to analyze the relationships between the adoption of sustainable management practices and innovation capacity in family agribusinesses certified by the Family Agribusiness Program. To this end, a quantitative study using a survey design was carried out with 128 certified Brazilian family agribusinesses. Sustainable management practices were assessed based on the models proposed by Global Reporting Initiative and Callado. Regarding innovation capacity, the study by Valladares was used as a basis. Homals analysis (homogeneity analysis) was used for data analysis. The results showed that the family agribusinesses analyzed that have a high adoption of environmental practices consisting of transformative leaderships that inspire, encourage, and develop people and promote the involvement and cooperation of their employees, high organicity of the organizational structure that allows quick decision‐making and open and transparent communication, and a management for people that allows adequate working conditions, training, and professional recognition.

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“…For senior executives, developing a sustainable strategy has always been an important challenge, but usually, actual implementation is a more daunting challenge. In most cases of successful implementation of sustainability strategies [27,28], the CEO actually takes part and is the promoter of the company's focus on practising sustainability [29]. However, these senior managers often face a tough challenge: how to improve sustainability performance on three levels at the same time-social, environmental, and financial performance.…”