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Strategic Management and Organizational Innovation: Strategic Innovation as a Means to Improve Organizational Sustainability

A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: closed (10 March 2023) | Viewed by 58263

Special Issue Editors


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Guest Editor
HUFS Business School, Hankuk University of Foreign Studies, Seoul 02450, Republic of Korea
Interests: knowledge acquisition from MNEs; MNE subsidiary performance; corporate social responsibility of MNEs; the impacts of FDI on economic growth
Special Issues, Collections and Topics in MDPI journals

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Guest Editor
Department of International Trade, Andong National University, Andong 36729, Korea
Interests: reverse knowledge transfer; rapport between exporters and importers; ESG management strategy of SMEs; Vietnam hotel management strategy

Special Issue Information

Dear Colleagues,

No one can deny that there are numerous previous studies that deal with strategic management and innovation. However, we should note that it is hard to find extant empirics, which try to examine both research areas by connecting them. For instance, despite its importance, strategic innovation has received scant scholarly attention from researchers, and in addition, they (i.e., researchers) generally have a propensity to overlook the link between strategic innovation and organizational sustainability. Strategic innovation is a firm's process of reforming or renovating its organizational strategy to accelerate business development, increase corporate value for shareholders and investors, and enhance competitiveness. Such innovations are crucial for firms to retain organizational long-term sustainability. Prominent examples of firms that have successfully applied strategic innovation may include Samsung, which effectively diversified its business scope; Nintendo, which produced some of the most popular consoles in the video game industry; and Ikea, which was typical of eco-friendly simplicity. Meanwhile, we assume that strategic innovation initiatives are designed and undertaken by the board of directors and executive team, but this is just a conjecture, and we do not know exactly how it is pursued for organizational sustainability. In this vein, the guest editors would like to invite submissions from researchers who study diverse theoretical perspectives, adopt various empirical approaches, and conduct multiple levels of analysis, as well as qualitative and quantitative experiments on the issue. We welcome submissions from diverse disciplines but are not limited to the following research keywords.

We look forward to receiving your contributions.

Prof. Dr. Byung Il Park
Prof. Dr. Gap-Yeon Jeong
Guest Editors

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • strategic innovation as part of organizational strategy
  • strategic innovation as a conduit for sustainable growth
  • strategic innovation as a means to reinvent new products and services
  • strategic innovation to compete against rivals in markets
  • strategic innovation to develop business models
  • strategic innovation to expand the customer base
  • strategic innovation to efficiently improve corporate brand and target customers
  • strategic innovation to make the supply chain and value chain more efficient and long-lived companies (i.e., proxy for sustainability)

Published Papers (14 papers)

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Editorial

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5 pages, 158 KiB  
Editorial
Strategic Management and Organizational Innovation: Strategic Innovation as a Means to Improve Organizational Sustainability
by Gap-Yeon Jeong and Byung Il Park
Sustainability 2023, 15(21), 15292; https://doi.org/10.3390/su152115292 - 26 Oct 2023
Viewed by 1213
Abstract
Welcome to this Special Issue of the Sustainability Journal on ‘Strategic management and organizational innovation: Strategic innovation as a means to improve organizational sustainability’ [...] Full article

Research

Jump to: Editorial

18 pages, 2222 KiB  
Article
Developing a Framework for Evaluating and Predicting Management Innovation in Public Research Institutions
by Kyungbo Park, Jeonghwa Cha and Jongyi Hong
Sustainability 2023, 15(9), 7261; https://doi.org/10.3390/su15097261 - 27 Apr 2023
Viewed by 813
Abstract
As the external environment changes rapidly, organizations need management innovation to adapt to and exploit change as an opportunity. To innovate, it is necessary to evaluate management innovation, because if an organization can measure the degree of management innovation, it can also achieve [...] Read more.
As the external environment changes rapidly, organizations need management innovation to adapt to and exploit change as an opportunity. To innovate, it is necessary to evaluate management innovation, because if an organization can measure the degree of management innovation, it can also achieve it. Moreover, if management innovation is predictable, profits can be maximized, and costs can be minimized by allocating efficient resources and establishing appropriate strategies. Therefore, this study attempts to predict the management innovation in public research institutions. Basic data mining and ensemble data mining techniques were used for the prediction. This analysis targeted public research institutes in South Korea. The results showed that the predictive power of public research institutions with high innovation was high. This study suggests that management innovation can be predicted in highly innovative public research institutions. Furthermore, this study’s framework can be applied to other industries. Full article
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16 pages, 963 KiB  
Article
The Impact of Digital Marketing Innovation on Firm Performance: Mediation by Marketing Capability and Moderation by Firm Size
by Sang-Uk Jung and Valeriia Shegai
Sustainability 2023, 15(7), 5711; https://doi.org/10.3390/su15075711 - 24 Mar 2023
Cited by 9 | Viewed by 15036
Abstract
Digital marketing innovation plays an important role in a company’s performance. Since this concept is quite new, there are not many empirical studies on the impact of marketing innovations. The purpose of this study is to examine the impact of digital marketing innovation [...] Read more.
Digital marketing innovation plays an important role in a company’s performance. Since this concept is quite new, there are not many empirical studies on the impact of marketing innovations. The purpose of this study is to examine the impact of digital marketing innovation on firm performance, consider the mediation effect of marketing capability on the impact of digital marketing capability on firm performance and explore the potential moderating effect of firm size on the mediation effect. Using KOSPI and KOSDAQ data and a linear moderated mediation estimation, we found that digital marketing innovation on firm performance through marketing capability has significant direct and indirect effects, with indirect effects greater than direct effects. Theoretical and practical implications are also discussed in this article. Full article
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23 pages, 352 KiB  
Article
The Moderating Effect of a Golden Parachute on the Association between CSR and Firm Value: Does Gender-Driven Innovation Matter?
by Collins E. Okafor, Nacasius U. Ujah, Eunho Cho, Winifred U. Okafor and Kevin L. James
Sustainability 2023, 15(6), 5483; https://doi.org/10.3390/su15065483 - 20 Mar 2023
Cited by 1 | Viewed by 1549
Abstract
We revisit the debate on whether a firm’s corporate social responsibility (CSR) activities enhance firm value. Research on related topics has produced mixed results suggesting a need to further investigate factors that directly or indirectly impact the CSR–firm value association. To this end, [...] Read more.
We revisit the debate on whether a firm’s corporate social responsibility (CSR) activities enhance firm value. Research on related topics has produced mixed results suggesting a need to further investigate factors that directly or indirectly impact the CSR–firm value association. To this end, we examine if a firm’s adoption of a golden parachute (GP) moderates the relationship between CSR and firm value. We also investigate if diversity-based innovation as it pertains to the gender of executives reveals any difference in the CSR–firm value relation. Using a sample of 11,065 firm-year observations of publicly traded US firms from 2007 to 2016, we find that CSR activities are significantly and positively associated with firm value. More importantly, our study shows that for US firms that issue GPs, this severance pay strengthens this positive relationship, suggesting that CEOs with a GP engage in more value-enhancing innovative CSR projects than their counterparts without it. This finding supports the conflict resolution theory and the resource-based view of the firm. A test to examine if the gender of the corporate executives alters their behavior towards CSR when the GP protects them shows an inverse relationship between female executives and CSR–firm value association. This interesting finding lends credence to related theories suggesting that women in male-dominated fields may feel pressured to conform to the stereotype of women as less competent than men and may adopt traditionally masculine behaviors to counteract this stereotype. As they climb the corporate leadership ladder endowed with a GP, the stereotype threat may still prevail, adversely affecting the CSR–firm value outcomes. These results remain robust after a series of sensitivity tests. Full article
16 pages, 1257 KiB  
Article
How Will the Relationship between Technological Innovation and Green Total Factor Productivity Change under the Influence of Service-Oriented Upgrading of Industrial Structure?
by Qingyan Zhu
Sustainability 2023, 15(6), 4881; https://doi.org/10.3390/su15064881 - 9 Mar 2023
Cited by 3 | Viewed by 1223
Abstract
Technological innovation is closely related to the green total factor productivity (GTFP), which has played an important role in China’s sustainable development goals. However, the relationship between technological innovation and GTFP may change due to the influence of economic factors such as the [...] Read more.
Technological innovation is closely related to the green total factor productivity (GTFP), which has played an important role in China’s sustainable development goals. However, the relationship between technological innovation and GTFP may change due to the influence of economic factors such as the service-oriented upgrading of industrial structure. This study used a panel dual-threshold regression model to perform an empirical analysis in order to explore this change. We introduced dummy variables to divide the samples into three categories according to the threshold value for group regression. The results show that technological innovation will still promote GTFP under the influence of the service-oriented upgrading of industrial structure. However, this positive influence has a double threshold effect; that is, it led to a nonlinear nexus. The role of technological innovation in promoting GTFP will decrease when the service-oriented upgrading of industrial structures crosses the first and the second thresholds. Additionally, the promotion effect of technological innovation on GTFP in provinces with high levels of service-oriented upgrades of industrial structures is smaller than that in provinces with a low degree of service-oriented upgrading of industrial structures, and even tends to be 0. When the government guides technological innovation to promote the improvement of GTFP, it needs to reasonably consider the composition of industrial structure and coordinate with effective industrial policies. Full article
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16 pages, 1002 KiB  
Article
The Mediating Effect of Green Human Resources Management on the Relationship between Organizational Sustainability and Innovative Behavior: An Application in Turkey
by Ergün Kara, Melda Akbaba, Emre Yakut, Makbule Hürmet Çetinel and Mehmet Mert Pasli
Sustainability 2023, 15(3), 2068; https://doi.org/10.3390/su15032068 - 21 Jan 2023
Cited by 9 | Viewed by 3382
Abstract
With globalization, it is required to support the innovative behaviors of employees as a driving force in order for organizations to increase their market share, provide competitive advantage and ensure organizational sustainability. The purpose of this study is to establish the intermediary role [...] Read more.
With globalization, it is required to support the innovative behaviors of employees as a driving force in order for organizations to increase their market share, provide competitive advantage and ensure organizational sustainability. The purpose of this study is to establish the intermediary role of green human resources management in the relationship between employees’ innovative behavior and organizational sustainability in the tourism sector. Data collection was achieved by conducting a survey of 615 hotel employees who work in accommodation establishments which are located in the city of Muğla (Turkey). In the scope of this study, validity and reliability analysis of the measurement scales were conducted and SmartPLS software was applied to implement a variance-based structural equation model. Within this framework, the research primarily discussed the variables among the relationship of organizational sustainability, IB, and green human resources management, and hypotheses were formed. A mediation test was conducted by selecting the bootstrap method in order to test the indirect effect that employees have on the perception of innovative behavior. The result of the study shows organizational sustainability has a significantly positive effect on innovative behavior and green human resources management, and also it emerged that green human resources management has a partial mediating effect on the success of organizational Sustainability on innovative behavior. Findings of the research state that whilst it is anticipated that the study can contribute to the literature theoretically and practically, a variety of proposals have been put forward for the benefit of future studies and operators to use. Full article
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22 pages, 3194 KiB  
Article
Sustainable Business Models Innovation and Design Thinking: A Bibliometric Analysis and Systematic Review of Literature
by Juliana Kurek, Luciana Londero Brandli, Marcos Antonio Leite Frandoloso, Amanda Lange Salvia and Janaina Mazutti
Sustainability 2023, 15(2), 988; https://doi.org/10.3390/su15020988 - 5 Jan 2023
Cited by 17 | Viewed by 5471
Abstract
The process of integrating sustainability into businesses and processes is still recent, both in startups, small and medium-sized companies and even multinationals. Sustainable business models became a phenomenon of global interest and Design Thinking has been increasingly used as a strategy to support [...] Read more.
The process of integrating sustainability into businesses and processes is still recent, both in startups, small and medium-sized companies and even multinationals. Sustainable business models became a phenomenon of global interest and Design Thinking has been increasingly used as a strategy to support this process. In this context, the aim of this article is to improve the understanding of how Design Thinking (DT) and its set of tools and methods contribute to the creation and innovation of sustainable business models (SBM). The analysis of frameworks indicates that the main methodologies linking Design Thinking and Sustainable Business Models are Workshops, Brainstorming, Co-creation and Prototyping. Also, approaches such as Circular Economy, Business Models and Product-Service System models are emerging as a means of enabling the collaborative consumption of products and services and with positive results for sustainable business. The analysis of the articles reveals that user-oriented innovation and analysis of stakeholder needs is present in practically all evaluated frames, but prototyping and experimentation represent a gap that should be better explored in the frameworks. Full article
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15 pages, 1560 KiB  
Article
Innovation Strategies for Textile Companies in Bangladesh: Development Using Quadrant Analysis Based on a Productivity Index
by Sarker Jewel, Jongyi Hong and Chaechang Im
Sustainability 2022, 14(24), 16329; https://doi.org/10.3390/su142416329 - 7 Dec 2022
Cited by 1 | Viewed by 2875
Abstract
Bangladesh currently occupies a vital place in the textile industry, but it is beset with critical problems, such as insufficient infrastructure, low labor efficiency, and the lack of awareness regarding innovation and political volatility among CEOs. To overcome this crisis, an essential task [...] Read more.
Bangladesh currently occupies a vital place in the textile industry, but it is beset with critical problems, such as insufficient infrastructure, low labor efficiency, and the lack of awareness regarding innovation and political volatility among CEOs. To overcome this crisis, an essential task is to measure the performance of individual companies because of the reality that “what you measure is what you get”. In consideration of these issues, this study developed a research framework on the basis of quadrant analysis and the Malmquist productivity index to capture the overall situation of Bangladeshi textile companies and provide useful information. The framework was then used to establish innovation strategies for such companies. The results of case studies indicated that even though improvements to the internal efficiency of these companies are sufficient, most of them need to innovate technology and policy. Applying the research framework to various fields can advance the formulation of optimized strategies tailored to a given company. Full article
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17 pages, 686 KiB  
Article
The Effects of Internal Market Orientation on Service Providers’ Service Innovative Behavior: A Serial Multiple Mediation Effect on Perceived Social Capital on Customers and Work Engagement
by Myoung-Soung Lee and Gap-Yeon Jeong
Sustainability 2022, 14(23), 15891; https://doi.org/10.3390/su142315891 - 29 Nov 2022
Cited by 1 | Viewed by 1418
Abstract
The purpose of this study is to understand the process through which internal market orientation leads to service innovative behavior via a serial multiple mediator model, with perceived social capital on customers and work engagement. It set and verified perceived social capital on [...] Read more.
The purpose of this study is to understand the process through which internal market orientation leads to service innovative behavior via a serial multiple mediator model, with perceived social capital on customers and work engagement. It set and verified perceived social capital on customers and work engagement as serial multiple mediation factors between internal market orientation and service innovative behavior. To achieve this, surveys targeting service providers working in the finance and insurance industries in South Korea were conducted. A total of 270 data were collected and used for analysis. The analysis showed that internal market orientation significantly increased perceived social capital on customers, and that perceived social capital on customers positively improved work engagement. In addition, it appeared that work engagement improved service innovative behavior. Regarding the serial multiple mediation effect, the direct effect of internal market orientation on service innovative behavior was not significant, but the serial multiple effect through perceived social capital and work engagement was significant. Thus, perceived social capital and work engagement fully mediated the relationship between internal market orientation and service innovative behavior. Full article
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20 pages, 649 KiB  
Article
The Effects of Digital Leadership and ESG Management on Organizational Innovation and Sustainability
by SiJian Niu, Byung Il Park and Jin Sup Jung
Sustainability 2022, 14(23), 15639; https://doi.org/10.3390/su142315639 - 24 Nov 2022
Cited by 21 | Viewed by 6381
Abstract
Companies around the world have recognized that environmental issues and social values constitute some of the most important management concerns and have actively introduced environmental, social, and governance management (ESG management, ESGM). In the digital age, an attempt is also often made to [...] Read more.
Companies around the world have recognized that environmental issues and social values constitute some of the most important management concerns and have actively introduced environmental, social, and governance management (ESG management, ESGM). In the digital age, an attempt is also often made to incorporate digital transformation into ESGM. However, research on the combination of digital leadership, ESGM, and organizational innovation is still in its early stages. Therefore, in this study, a research model was constructed by combining ESGM and organizational innovation (OI) from the perspective of digital leadership (DL). Specifically, for achieving organizational sustainability (OS), the mediating effect of two variables—ESGM and organizational innovation—was also explored, and empirical analysis was conducted on Korean and Chinese companies. We took into consideration the premise that the impact of digital leadership, ESGM, and organizational innovation on organizational sustainability could be different due to the differences in the cultures and systems of the two countries. For empirical analysis, partial least squares structural equation modeling (PLS-SEM) was used. The results showed that digital leadership in both countries had a significant effect on ESGM and organizational innovation. Specifically, both digital leadership and ESGM together with organizational innovation played an important role in organizational sustainability in the entire model. However, between digital leadership and organizational sustainability, the mediating effect of ESGM and organizational innovation was different, viz., Korea had partial mediating effects and China had complete mediating effects. It is expected that this study would fill the research gap in the area of digital leadership in ESGM and contribute to the implementation of corporate ESGM strategies and organizational innovation. Furthermore, valuable implications for organizational sustainability and the sustainable growth of companies are also presented. Full article
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13 pages, 261 KiB  
Article
When Digital Capabilities of MNC Subsidiaries Matters: The Moderating Effect of Subsidiary Autonomy in Korea
by Jaehwi Jeong, Donseung Choi and Jangsoon Kim
Sustainability 2022, 14(22), 15176; https://doi.org/10.3390/su142215176 - 16 Nov 2022
Cited by 3 | Viewed by 1286
Abstract
This study investigates the relationship between digital capabilities and the performance of MNC Korean subsidiaries and the moderating effect of subsidiaries’ autonomy. We examined the effect of digital capabilities of MNC subsidiaries on financial and non-financial performance represented by corporates’ sustainability and the [...] Read more.
This study investigates the relationship between digital capabilities and the performance of MNC Korean subsidiaries and the moderating effect of subsidiaries’ autonomy. We examined the effect of digital capabilities of MNC subsidiaries on financial and non-financial performance represented by corporates’ sustainability and the effect of the subsidiary autonomy that controls them. According to the result of the analysis, digital capabilities drive innovation enhancing both financial and non-financial performance of subsidiaries. In addition, it was found that the autonomy of the subsidiary significantly strengthens the positive relationship between the subsidiary’s digital capabilities and financial performance. Instead, the autonomy of the subsidiary does not appear to moderate the effect of the relationship between digital capabilities and non-financial performance significantly. These results suggest that subsidiaries’ digital capabilities improve financial and non-financial performance. In addition, the autonomy of subsidiaries suggests that the digital capabilities of subsidiaries can be a positive factor in the process leading to financial performance. Full article
17 pages, 2912 KiB  
Article
Product Innovation and Design Strategies for 5G Technology in China’s Home Appliance Companies
by Honglei Lu, Xin Cao and Yen Hsu
Sustainability 2022, 14(22), 14781; https://doi.org/10.3390/su142214781 - 9 Nov 2022
Cited by 2 | Viewed by 3844
Abstract
With the continuous evolution of mobile communication systems, 5G technology has become a key driver for a smart home appliance ecosystem. Fifth-generation technology may create opportunities and threats for the home appliance industry in the stock market, and so companies that do not [...] Read more.
With the continuous evolution of mobile communication systems, 5G technology has become a key driver for a smart home appliance ecosystem. Fifth-generation technology may create opportunities and threats for the home appliance industry in the stock market, and so companies that do not actively engage in product innovation activities will eventually be eliminated from the market because their products are not on trend. This study investigates Chinese household appliance industry firms to identify their innovation strategies, applied to cope with global competition and gain a competitive advantage, and explores the correlation and operation mode between innovation strategies and design strategies. For this study, we administered a questionnaire to analyze three innovation clusters for Chinese household appliance firms. Interviews were conducted to further understand the design strategies and priorities of Chinese home appliance companies in response to 5G technology, to explore the relationship between innovation strategies and product design strategies, and to provide a reference for the product design strategies of home appliance companies in response to global competition. Full article
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20 pages, 696 KiB  
Article
What Drives Sustainable Development of Enterprises? Focusing on ESG Management and Green Technology Innovation
by Cong Zhang and Shanyue Jin
Sustainability 2022, 14(18), 11695; https://doi.org/10.3390/su141811695 - 18 Sep 2022
Cited by 32 | Viewed by 8352
Abstract
Sustainable development of a company is an important task in corporate management. Enterprises must constantly innovate and change to achieve sustainable development. In China, considering the need for sustainable development of enterprises and the requirement of the dual carbon goals of carbon peaking [...] Read more.
Sustainable development of a company is an important task in corporate management. Enterprises must constantly innovate and change to achieve sustainable development. In China, considering the need for sustainable development of enterprises and the requirement of the dual carbon goals of carbon peaking and carbon neutrality, the environment, social responsibility, and governance (ESG) management and green technology innovation of enterprises are in the spotlight. Therefore, this study aimed to use empirical analysis to verify whether the ESG performance of enterprises promotes corporate green technology innovation and to further explore corporate attributes that promote the relationship between the two. This study selected 933 Chinese A-share listed companies from 2015 to 2019 as the research object and used the fixed effect model to empirically analyze the relationship between ESG performance and the green technology innovation capability of enterprises. The results show that ESG performance plays an important role in promoting green technology innovation capability. Moreover, this study found that, compared to enterprises with low technology levels or short-listing life span, the ESG performance of enterprises with high technology level and long listing life span has a stronger role in promoting the green technology innovation capability of enterprises. Simultaneously, compared with non-state-owned enterprises, state-owned enterprises play a stronger role in the promotion. This study enriches the theoretical mechanism of ESG performance affecting green technology innovation of enterprises, and they have a certain reference value for promoting the sustainable development of enterprises. Full article
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23 pages, 971 KiB  
Article
What Is the Link between Strategic Innovation and Organizational Sustainability? Historical Review and Bibliometric Analytics
by Chi-Yen Yin and Hsiao-Hsin Chang
Sustainability 2022, 14(11), 6937; https://doi.org/10.3390/su14116937 - 6 Jun 2022
Cited by 7 | Viewed by 3649
Abstract
The academic and practical are very acquainted with both strategic innovation (SI) and organizational sustainability (OS) at present, but a literature review revealed that there are few studies discussing the correlation between SI and OS in these two subjects. This study attempts to [...] Read more.
The academic and practical are very acquainted with both strategic innovation (SI) and organizational sustainability (OS) at present, but a literature review revealed that there are few studies discussing the correlation between SI and OS in these two subjects. This study attempts to identify and classify these articles (SI and OS) in publications. Seven spotlights are noted in this paper in terms of the (1) published year, (2) citation report, (3) country/territory, (4) affiliation name, (5) document type, (6) Web of Science (WoS) categories, and (7) publication titles. A total of 125 (SI = 70 and OS = 55) articles were retrieved from the Social Sciences Citation Index (Web of Science). We applied a bibliometric analytics technique to depict a panorama among the core journals, document characteristics, and research trends over thirty years (1991–2021) by setting the article titled as “strategic innovation” or “organizational sustainability” in the SSCI electronic database. In this study, Bradford’s law was necessarily adapted to examine how many journal papers were frequently cited. These journals could be an exceptional reference for rising researchers to swiftly detect relevant information. The Kolmogorov–Smirnov (abbreviation: K–S) test was also conducted to survey whether the author’s productivity complied with Lotka’s law. The benchmarks were broadened to evaluate the capability and academic standing of different authors in a certain subject area. The results unveiled that comparing the expansionary scope of SI and OS research can fit well with industry, government, academia, and research for their various requirements, functions, and schemes. According to the above analysis, these findings simultaneously constitute an adequate preparation and represent a blueprint for those who need to refer to the collections to formulate an appropriate research platform in the near future. Full article
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