In-Store Service and Process Innovation as a Mediator Between Perceived Sustainable Innovativeness and Organizational Performance

This research examines how managers’ perceptions of product-based sustainable innovativeness are associated with retailer performance, both directly and indirectly through in-store service and process sustainable innovation, considering both non-financial and financial performance outcomes. Survey data were collected through face-to-face interviews with 200 store managers in major Spanish metropolitan areas and analyzed using structural equation modeling. The results indicate that service and process sustainable innovation within stores significantly mediates the relationship between perceived product-level sustainable innovativeness and both financial and non-financial performance. The findings emphasize the strategic relevance of aligning product innovation with service-based sustainability initiatives to support retail performance.