From Strategic Planning to Innovation: The Mediating Role of Environmental Proactivity in Food Industry Firms

Abstract

This study examines how strategic planning and environmental proactivity relate to firm-level innovation in small and medium-sized enterprises. Drawing on the resource-based view and dynamic capabilities perspective, the study conceptualizes strategic planning and environmental proactivity as complementary organizational capabilities that enable firms to respond to sustainability-related challenges while fostering innovation. Recent research has emphasized that environmental proactivity can function as a strategic resource rather than compliance-driven costs. However, empirical evidence on how these capabilities jointly relate to different types of innovation remains limited. Using survey data from 185 food industry firms and covariance-based structural equation modeling, the study examines relationships between strategic planning, environmental proactivity, operational innovation, and market-oriented innovation. The results indicate that strategic planning is positively associated with operational innovation and market-oriented innovation. Environmental proactivity shows a strong positive relationship with operational innovation and a moderate but significant association with market-oriented innovation. The study contributes to sustainability and innovation research by demonstrating how strategic and environmental capabilities jointly shape innovation within SMEs. For practitioners, the findings highlight the importance of integrating environmental considerations into formal strategic planning processes to support innovation.