Advertisement

Journal of the Academy of Marketing Science

, Volume 45, Issue 1, pp 14–36 | Cite as

Innovating for sustainability: a framework for sustainable innovations and a model of sustainable innovations orientation

  • Rajan VaradarajanEmail author
Conceptual/Theoretical Paper

Abstract

In an environment characterized by growing awareness of environmental sustainability among various stakeholders in organizations, innovating for sustainability can be expected to grow in importance from the standpoints of organizational legitimacy, reputation, and performance. Relatedly, a firm’s sustainable innovations capabilities as a source of competitive advantage and the sustainability related attributes of a firm’s product offerings as bases for market segmentation, target marketing, positioning, and differentiation can also be expected to grow in importance. The emergence of sustainability as a major driver of innovation highlights a number of important issues that merit investigation, such as potential avenues for sustainable innovation and sustainable product innovation and factors underlying differences between firms in their commitment to a sustainable innovations orientation. In an attempt to gain insights into these issues, this paper presents (1) a conceptual framework delineating potential avenues for sustainable innovations and (2) a conceptual model delineating a number of firm-related and industry-related antecedents of sustainable innovations orientation, along with performance outcomes of sustainable innovations orientation. Implications for theory, research, and practice are discussed.

Keywords

Sustainability Sustainability and marketing Sustainable innovations Sustainable innovations orientation Sustainable innovations performance 

References

  1. Adams, C. (2002). Internal organizational factors influencing corporate social and ethical reporting: beyond current theorizing. Accounting, Auditing & Accountability Journal, 15(2), 223–250.CrossRefGoogle Scholar
  2. Adams, R., Jeanrenaud, S., Bessant, J., Overy, P. & Denyer, D. (2012). Innovating for sustainability: a systematic review of body of knowledge. Network for Sustainability. Retrieved from: nbs.net/knowledge.Google Scholar
  3. Ambec, S., & Lanoie, P. (2008). Does it pay to be green? A systematic overview. Academy of Management Perspectives, 22(4), 45–62.CrossRefGoogle Scholar
  4. Amit, R., & Schoemaker, P. J. H. (1993). Strategic assets and organizational rent. Strategic Management Journal, 14(1), 33–46.CrossRefGoogle Scholar
  5. Arnold, M. G., & Hockerts, K. (2011). The greening Dutchman: Philips’ process of green flagging to drive sustainable innovations. Business Strategy and the Environment, 20(6), 394–407.Google Scholar
  6. Arora, S., & Cason, T. N. (1995). An experiment in voluntary environmental regulation: participation in EPA’s 33/50 program. Journal of Environmental Economics and Management, 28(3), 271–286.CrossRefGoogle Scholar
  7. Arora, S., & Gangopadhyay, S. (1995). Toward a theoretical model of voluntary overcompliance. Journal of Economic Behavior and Organization, 28(3), 289–309.CrossRefGoogle Scholar
  8. Bansal, P. (2005). Evolving sustainably: a longitudinal study of corporate sustainable development. Strategic Management Journal, 26(3), 197–218.CrossRefGoogle Scholar
  9. Barnett, M. L., & Salomon, R. M. (2012). Does it pay to be really good? Addressing the shape of the relationship between social and financial performance. Strategic Management Journal, 33(11), 1304–1320.CrossRefGoogle Scholar
  10. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.CrossRefGoogle Scholar
  11. Berrone, P., & Gomez-Mejia, L. R. (2009). Environmental performance and executive compensation: an integrated agency-institutional perspective. Academy of Management Journal, 52(1), 103–126.CrossRefGoogle Scholar
  12. Berrone, P., Fosfuri, A., Gelabert, L., & Gomez-Mejia, L. R. (2013). Necessity as the mother of ‘green’ inventions: institutional pressures and environmental innovations. Strategic Management Journal, 34(8), 891–909.CrossRefGoogle Scholar
  13. Blättel-Mink, B. (1998). Innovation towards sustainable economy: the integration of economy and ecology in companies. Sustainable Development, 6(2), 49–58.CrossRefGoogle Scholar
  14. Bourgeois, L. J. (1981). On the measurement of organizational slack. Academy of Management Review, 6(1), 29–39.Google Scholar
  15. Brown, T. J., Dacin, P. A., Pratt, M. G., & Whetten, D. A. (2006). Identity, intended image, construed image, and reputation: an interdisciplinary framework and suggested terminology. Journal of the Academy of Marketing Science, 34(Spring), 99–106.CrossRefGoogle Scholar
  16. Buttol, P., Buonamici, R., Naldesi, L., Rinaldi, C., Zamagni, A., & Masoni, P. (2012). Integrating services and tools in an ICT platform to support eco-innovation in SMEs. Clean Technologies and Environmental Policy, 14(2), 211–221.CrossRefGoogle Scholar
  17. Chandy, R. K., & Tellis, G. J. (1998). Organizing for radical product innovation: the overlooked role of willingness to cannibalize. Journal of Marketing Research, 35(November), 474–487.CrossRefGoogle Scholar
  18. Chatterji, A. K., Levine, D. I., & Toffel, M. W. (2009). How well do social ratings actually measures corporate social responsibility? Journal of Economics and Management Strategy, 18(1), 125–169.CrossRefGoogle Scholar
  19. Christmann, P., & Taylor, G. (2001). Globalization and the environment: determinants of firm self-regulation in China. Journal of International Business Studies, 32(3), 439–458.CrossRefGoogle Scholar
  20. Claudy, M. C., Peterson, M., & O’Driscoll, A. (2013). Understanding the attitude-behavior gap for renewable energy systems using behavioral reasoning theory. Journal of Macromarketing, 33(4), 273–287.CrossRefGoogle Scholar
  21. Crittenden, V. L., Crittenden, W. F., Ferrell, L. K., Ferrell, O. C., & Pinney, C. C. (2011). Market-oriented sustainability: a conceptual framework and propositions. Journal of the Academy of Marketing Science, 39(1), 71–85.CrossRefGoogle Scholar
  22. Dierickx, I., & Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35(12), 1504–1511.CrossRefGoogle Scholar
  23. DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: institutional Isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147–160.CrossRefGoogle Scholar
  24. Drumwright, M. E. (1994). Socially responsible organizational buying: environmental concern as a non-economic buying criterion. Journal of Marketing, 58, 1–19.CrossRefGoogle Scholar
  25. Ebru, G. & Di Benedetto, C. A. (2015). Cross-functional integration in the sustainable new product development process: the role of the environmental specialist. Industrial Marketing Management, 44. doi: 10.1016/j.indmarman.2015.05.001.
  26. Eccles, R. G., Perkins, K. M., & Serafeim, G. (2012). How to become a sustainable company. MIT Sloan Management Review, 53, 43–50.Google Scholar
  27. Freeman, R. E. (1984). Strategic management: a stakeholder approach. Boston: Pitman.Google Scholar
  28. Fussler, C., & James, P. (1996). Driving eco-innovation: a breakthrough discipline for innovation and sustainability. London: Pitman.Google Scholar
  29. Garcia, R., & Calantone, R. (2002). A critical look at the technological innovation typology and innovativeness terminology: a literature review. The Journal of Product Innovation Management, 19(2), 110–132.CrossRefGoogle Scholar
  30. Ghoshal, S. (1987). Global strategy: an organizing framework. Strategic Management Journal, 8, 425–440.CrossRefGoogle Scholar
  31. Govindarajan, V., & Trimble, C. (2012). Reverse innovation: create far from home, win everywhere. New York: Harvard Business Review Press.Google Scholar
  32. Guiltinan, J. (2009). Creative destruction and destructive creations: environmental ethics and planned obsolescence. Journal of Business Ethics, 89, 19–28.CrossRefGoogle Scholar
  33. Haanaes, K., et al. (2011). First look: the second annual sustainability and innovation survey. MIT Sloan Management Review, 52(2), 77–83.Google Scholar
  34. Halila, F., & Rundquist, J. (2011). The development and market success of environmental innovations: a comparative study of environmental innovations and “other” innovations in Sweden. European Journal of Innovation Management, 14(3), 278–302.CrossRefGoogle Scholar
  35. Hansen, E. G., & Große-Dunker, F. (2013). Sustainability-oriented innovation. In S. O. Idowu, N. Capaldi, L. Zu, & A. Das Gupta (Eds.), Encyclopedia of corporate social responsibility (Vol. I, pp. 2407–2417). Heidelberg: Springer.CrossRefGoogle Scholar
  36. Hansen, E. G., Große-Dunker, F., & Reichwald, R. (2009). Sustainability innovation cube: a framework to evaluate sustainability-oriented innovations. International Journal of Innovation Management, 13, 683–713.CrossRefGoogle Scholar
  37. Hawkins, T. R., Singh, B., Majeau-Bettez, G., & Strømman, A. H. (2013). Comparative environmental life cycle assessment of conventional and electric vehicles. Journal of Industrial Ecology, 17, 53–64.CrossRefGoogle Scholar
  38. Heugens, P. P. M. A. R., & Lander, M. W. (2009). Structure! Agency! (And other quarrels): a meta-analysis of institutional theories of organization. Academy of Management Journal, 52(1), 61–85.CrossRefGoogle Scholar
  39. Huber, J. (2008). Technological environmental innovations (TEIs) in a chain-analytical and life-cycle-analytical perspective. Journal of Cleaner Production, 16(18), 1980–1986.CrossRefGoogle Scholar
  40. Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: antecedents and consequences. Journal of Marketing, 57, 53–70.CrossRefGoogle Scholar
  41. Johansson, G., & Magnusson, T. (1998). Eco-innovations: a novel phenomenon? Journal of Sustainable Product Design, 7, 7–18.Google Scholar
  42. Kanter, R. M. (2006). Innovation: the classic traps. Harvard Business Review, 84(11), 73–83.Google Scholar
  43. Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of Marketing, 54, 1–19.CrossRefGoogle Scholar
  44. Kohli, A. K., Jaworski, B. J., & Kumar, A. (1993). MARKOR: a measure of market orientation. Journal of Marketing Research, 30, 460–477.CrossRefGoogle Scholar
  45. KPMG (2013). The KPMG survey of corporate responsibility reporting 2013. KPMG.com/sustainability.Google Scholar
  46. Kronrod, A., Grinstein, A., & Wathieu, L. (2012). Go green! should environmental message be so assertive? Journal of Marketing, 76, 95–102.CrossRefGoogle Scholar
  47. Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder theory: reviewing a theory that moves us. Journal of Management, 34, 1152–1189.CrossRefGoogle Scholar
  48. Larson, A. L. (2000). Sustainable innovation through an entrepreneurship lens. Business Strategy and the Environment, 9(5), 304–317.CrossRefGoogle Scholar
  49. Leonidou, C. N., Katsikeas, C. S., & Morgan, N. A. (2013). Greening the marketing mix: do firms do it and does it pay off? Journal of the Academy of Marketing Science, 41(2), 151–170.CrossRefGoogle Scholar
  50. Luchs, M. G., Naylor, R. W., Irwin, J. R., & Raghunathan, R. (2010). The sustainability liability: potential negative effects of ethicality on product preference. Journal of Marketing, 74, 18–31.CrossRefGoogle Scholar
  51. Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction and market value. Journal of Marketing, 70, 1–18.CrossRefGoogle Scholar
  52. Machiba, T. (2010). Eco-Innovation for enabling resource efficiency and green growth: development of an analytical framework and preliminary analysis of industry and policy practices. International Economics and Economic Policy, 7(2), 357–370.CrossRefGoogle Scholar
  53. MacInnis, D. J. (2011). A framework for conceptual contributions in marketing. Journal of Marketing, 75, 136–154.CrossRefGoogle Scholar
  54. Madsen, P. J., & Rodgers, Z. J. (2015). Looking good by doing good: the antecedents and consequences of stakeholder attention to corporate disaster relief. Strategic Management Journal, 36(5), 776–794.CrossRefGoogle Scholar
  55. Mariadoss, B. J., Tansuhaj, P. S., & Mouri, N. (2011). Marketing capabilities and innovation-based strategies for environmental sustainability: an exploratory investigation of B2B firms. Industrial Marketing Management, 40(8), 1305–1318.CrossRefGoogle Scholar
  56. Martin, A., & Rosenthal, E. (2011). A dash of cold water. The New York Times (Sep 17), p. B1, New York edition.Google Scholar
  57. Mitchell, R. W., Wooliscroft, B., & Higham, J. (2010). Sustainable market orientation: a new approach to managing marketing strategy. Journal of Macromarketing, 30(2), 160–170.CrossRefGoogle Scholar
  58. Neff, J. (2010). Agencies also on the hook for P&G's green scorecard. Advertising Age (May 12) http://adage.com/article/news/agencies-hook-p-g-s-green-scorecard/143817/
  59. Nidumolu, R., Prahalad, C. K., & Rangaswami, M. R. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review, 82, 57–67.Google Scholar
  60. Nikolaeva, R., & Bicho, M. (2011). The role of institutional and reputational factors in the voluntary adoption of corporate social responsibility reporting standards. Journal of the Academy of Marketing Science, 39(1), 136–157.CrossRefGoogle Scholar
  61. Olson, E. L. (2013). It’s not easy being green: the effects of attribute tradeoffs on green preference and choice. Journal of the Academy of Marketing Science, 41, 171–184.CrossRefGoogle Scholar
  62. P&G 2010 Sustainability report. (2010). www.pg.com/sustainability
  63. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: a multiple-item scale for measuring perceptions of service quality. Journal of Retailing, 64(1), 12–40.Google Scholar
  64. Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: a resource dependence perspective. New York: Harper & Row.Google Scholar
  65. Pfitzer, M., Bockstette, V., & Stamp, M. (2013). Innovating for shared value. Harvard Business Review, 86, 100–107.Google Scholar
  66. Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance. New York: Free Press.Google Scholar
  67. Porter, M. E., & Kramer, M. R. (2006). Strategy and society: the link between competitive advantage and corporate social responsibility. Harvard Business Review, 79, 78–93.Google Scholar
  68. Ramus, C. A. (2001). Organizational support for employees: encouraging creative ideas for environmental sustainability. California Management Review, 43(3), 85–105.CrossRefGoogle Scholar
  69. Rennings, K. (2000). Redefining innovation: eco-innovation research and the contribution from ecological economics. Ecological Economics, 32(2), 319–332.CrossRefGoogle Scholar
  70. Rosenbloom, S., & Barbaro, M. (2009) Green-light specials, now at Wal-Mart. The New York Times (January 25), p. BU1, New York edition.Google Scholar
  71. Sharma, A., Iyer, G. R., Mehrotra, A., & Krishnan, R. (2010). Sustainability and business-to-business marketing: a framework and applications. Industrial Marketing Management, 39, 330–341.CrossRefGoogle Scholar
  72. Siguaw, J. A., Simpson, P. M., & Enz, C. A. (2006). Conceptualizing innovation orientation: a framework for study and integration of innovation research. Journal of Product Innovation Management, 23(6), 556–574.CrossRefGoogle Scholar
  73. Srivastava, N. (2013). Triple bottom line performance: the role of business in nation building. ISB Insight, 1(1), 50–55. Mr. Y. C. Deveshwar, Chairman of ITC Limited, in response to a question by Srivastava (2013) on behalf of ISB Insight.Google Scholar
  74. Tellis, G. J., Prabhu, J. C., & Chandy, R. K. (2009). Radical innovation across nations: the preeminence of corporate culture. Journal of Marketing, 73(1), 3–23.CrossRefGoogle Scholar
  75. United Nations Environment Programme. (2005). Talk the walk: Advancing sustainable lifestyles through marketing and communications. New York: United Nations Global Compact and Utopies.Google Scholar
  76. Varadarajan, R. (2014). Toward sustainability: public policy, global social innovations for base-of-the-pyramid markets, and demarketing for a better world. Journal of International Marketing, 22(2), 1–20.CrossRefGoogle Scholar
  77. Walls, J. L., Phan, P. H., & Berrone, P. (2011). Measuring environmental strategy: construct development, reliability, and validity. Business Society, 50(1), 71–115.CrossRefGoogle Scholar
  78. Williams, C., & Millington, A. C. (2004). The diverse and contested meanings of sustainable development. The Geographical Journal, 170(2), 99–104.CrossRefGoogle Scholar
  79. Yadav, M. S., Prabhu, J. C., & Chandy, R. K. (2007). Managing the future: CEO attention and innovation outcomes. Journal of Marketing, 71(4), 84–101.CrossRefGoogle Scholar

Copyright information

© Academy of Marketing Science 2015

Authors and Affiliations

  1. 1.Department of MarketingTexas A&M UniversityCollege StationUSA

Personalised recommendations