Is there a two-way relationship between management practices and firm innovation? Evidence from asian-european countries

Abstract

This study examines the two-way relations between management practices and corporate innovation in the Asia-Europe region. These are critical factors for business survival and success, fostering economic growth and addressing environmental issues. The study uses data from the World Bank Enterprise Survey (WBES), covering 14 Asia-European countries in 2023. Using a partial least squares structural equation modeling (PLS-SEM) approach, the results indicate a direct bidirectional relationship between management practices and corporate innovation. innovation. This relationship is also positively influenced by indirect factors such as energy management policies, the business environment, and the level of market competition. Consequently, the study emphasizes the importance of integrated management strategies, considering solutions to promote innovation and achieve sustainable development