The Impact of Sustainability Learning On Sustainability Innovation

Abstract

Currently, palm oil industries are highly responsive to the improvement of global integration, innovation, the requirement of sustainable development and new technology. These raise challenges for a companys ability to survive. This papers objective is to analyse the effect of formal and non-formal learning in palm oil business units. This has an impact on sustainability innovation practices and is complemented by the absorptive capacity to take up knowledge on sustainability requirements and policy. It is then implemented into sustainability innovation. This research model was empirically researched using a quantitative survey that incorporated cross-sectional data from 100 estate or mill managers who use palm oil sustainability certification. The data obtained was analysed with PLS Based SEM by using the Smart PLS 3.0 application. The result shows that the direct effect of variable formal sustainability organisational learning has a significant impact on sustainability-oriented innovation. However, non-formal sustainability organisational learning has no significant impact. Formal sustainable learning may be adopted to increase sustainability innovation practice by the partial mediation of absorptive capacity. Overall, this study clarifies the empirical findings and research in the field of formal and non-formal learning by investigating the relationships and effects of sustainable innovation.