This paper develops and empirically validates a framework of innovation adoption that explicates the mechanisms through which purposeful service businesses generate sustainability innovation through improvisation. The model differentiates between regimes of sustainability innovation: operational innovations that recast existent firm-centric processes towards cost-containing, environmentally friendly value and systemic business innovations that aim to devise system-wise, circular and regenerative innovations. Analysis of primary data from a sample of 275 small businesses in service activities confirms that the effect of sustainability innovation is partially mediated by improvisation practices. Businesses are more likely to extend the scope of their sustainability ambitions through formal practices when they draw on improvisation and collaborative practices. We contribute to the literature by documenting the role of improvisation in motivating the pursuit of sustainability-level ambitions and by unpacking the specific innovative practices implemented to achieve responsible goals.
