122
5.2.2 Sustainability-Oriented Innovation (SOI)
During the recent decades, the use of concepts connected to sustainable innovation,
such as green innovation, environmental innovation and ecological innovation, have
grown (Schiederig et al. 2012). In recent years, circular economy (Korhonen et al.
2018) and circular innovation (Guzzo et al. 2019) have also emerged as concepts.
Bigliardi and Bertolini (2012, p 400) offer three explanations for this growing interest: “it may confer legitimacy, enhance competitiveness, and highlight ecological
responsibility in an environment of both regulatory and consumer sensitization”.
However, the connection between innovation and sustainability has still to be developed further (Neutzling et al. 2018). Adams et al. (2016) have, after conducting a
structured literature review of both academic and grey literature, identified four
shortcomings with previous work. There is uncertainty regarding what sustainability actually means and how it can be achieved, because of the large variety of different conceptualizations. Previous work also tends to treat sustainability dichotomously
(sustainable/not sustainable), rather than as a dynamic, unfolding process that is
achieved over time. Further, previous work often overlooks the social dimension.
Finally, many reviews of environmental management and sustainability exclude
contemporary grey literature.
Based on their literature review, Adams et al. (2016) developed a framework of
sustainability-oriented innovation. Their perspective is that “sustainability-oriented
innovation involves making intentional changes to an organization’s philosophy and
values, as well as to its products, processes or practices to serve the specific purpose
of creating and realizing social and environmental value in addition to economic
returns” (p. 181). The framework starts as regulatory compliance with incremental
change at the firm level and culminates with radical change at the large-scale systems level. The researchers claim that moving through the framework requires a
step change in philosophy, values and behaviour, which will be reflected in the
innovation activity of the company.
The framework is divided into three dimensions (from diminishingly unsustainable to increasingly sustainable). The first dimension, technical/people, is about a
movement in the literature from a focus on technology, i.e. a “set of tools”, to a
recent focus on people-centred innovation. The second dimension, stand-alone/integrated, is internal and describes how “innovation for sustainable manufacturing has
moved from end-of-pipe, stand-alone solutions to modes of practice that require
sustainability to be more deeply embedded in the culture of the firm” (p. 183). The
third dimension, insular/systemic, reflects the firm’s view of itself in relation to a
wider socio-economic system beyond the firm’s immediate boundaries and
stakeholders.
These three dimensions represent three sustainability-oriented approaches on the
journey to a sustainable business, operational optimization, organizational transformation and system building that a firm can have when it comes to innovation objective, outcome and relationship, defining the sustainability of the business (Table 5.1).
P.-O. Ulvenblad
5.2.2 Sustainability-Oriented Innovation (SOI)
During the recent decades, the use of concepts connected to sustainable innovation,
such as green innovation, environmental innovation and ecological innovation, have
grown (Schiederig et al. 2012). In recent years, circular economy (Korhonen et al.
2018) and circular innovation (Guzzo et al. 2019) have also emerged as concepts.
Bigliardi and Bertolini (2012, p 400) offer three explanations for this growing interest: “it may confer legitimacy, enhance competitiveness, and highlight ecological
responsibility in an environment of both regulatory and consumer sensitization”.
However, the connection between innovation and sustainability has still to be developed further (Neutzling et al. 2018). Adams et al. (2016) have, after conducting a
structured literature review of both academic and grey literature, identified four
shortcomings with previous work. There is uncertainty regarding what sustainability actually means and how it can be achieved, because of the large variety of different conceptualizations. Previous work also tends to treat sustainability dichotomously
(sustainable/not sustainable), rather than as a dynamic, unfolding process that is
achieved over time. Further, previous work often overlooks the social dimension.
Finally, many reviews of environmental management and sustainability exclude
contemporary grey literature.
Based on their literature review, Adams et al. (2016) developed a framework of
sustainability-oriented innovation. Their perspective is that “sustainability-oriented
innovation involves making intentional changes to an organization’s philosophy and
values, as well as to its products, processes or practices to serve the specific purpose
of creating and realizing social and environmental value in addition to economic
returns” (p. 181). The framework starts as regulatory compliance with incremental
change at the firm level and culminates with radical change at the large-scale systems level. The researchers claim that moving through the framework requires a
step change in philosophy, values and behaviour, which will be reflected in the
innovation activity of the company.
The framework is divided into three dimensions (from diminishingly unsustainable to increasingly sustainable). The first dimension, technical/people, is about a
movement in the literature from a focus on technology, i.e. a “set of tools”, to a
recent focus on people-centred innovation. The second dimension, stand-alone/integrated, is internal and describes how “innovation for sustainable manufacturing has
moved from end-of-pipe, stand-alone solutions to modes of practice that require
sustainability to be more deeply embedded in the culture of the firm” (p. 183). The
third dimension, insular/systemic, reflects the firm’s view of itself in relation to a
wider socio-economic system beyond the firm’s immediate boundaries and
stakeholders.
These three dimensions represent three sustainability-oriented approaches on the
journey to a sustainable business, operational optimization, organizational transformation and system building that a firm can have when it comes to innovation objective, outcome and relationship, defining the sustainability of the business (Table 5.1).
P.-O. Ulvenblad