Environmental Factors in Business Engagement in Innovation for Sustainability
In this chapter, Iñigo explores the environmental factors that affect the engagement of businesses in innovation for sustainability (IfS). Looking at the literature on dynamic capabilities and socio-technical transitions and drawing on empirical evidence of eight cases of companies leading the way in IfS, three different degrees of dynamism are identified. In stable environments, firms often adopt a rather reactive approach to IfS, innovating towards compliance. In dynamic environments, firms draw an IfS-based strategy, offering solutions to challenges in their environment. Finally, discontinuous environments, despite the risks for the firm, pose the greatest opportunities for the firm to contribute to systems building through their IfSs. The research and managerial implications for IfS of such different degrees of dynamism are considered.
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