What affects sustainability and innovation - Hard or soft corporate identity?

This research explored the effects of corporate identity on innovation strategies and sustainability. The study examined six aspects of corporate identity and four aspects of innovation strategies. In order to test our research model, application data was gathered through a survey of employees and managers of a leading furniture designer and manufacturer. Through factor analysis, two aspects of corporate identity were assessed: soft corporate identity and hard corporate identity. Significant findings emerged via structural equation modeling. The data indicates that soft corporate identity affects market innovation and process innovation, while hard corporate identity influences organizational innovation, market innovation, process innovation, and product innovation. In addition, process innovation and product innovation are shown to influence corporate sustainability. The analysis demonstrates that sustainability is influenced by hard corporate identity. The findings strongly suggest that organizations should develop innovative strategies for sustainable performance, particularly regarding hard corporate identity.