Implementation of sustainability-oriented innovation in business – studying organizational and external capabilities: evidence from Poland

Abstract

The concept of sustainability-oriented innovation is recent and still under researched. The aim of the Thesis is to contribute to the field and investigate how do companies operating in Poland apply sustainability-oriented innovation (SOI) to their core business activities, what are the differences between various business forms of organization in terms of SOI, and what type of capabilities facilitate implementation of SOI. Given early stage of empirical research on sustainability-oriented innovation, an exploratory-descriptive case study research strategy was taken applying qualitative methods. 6 interviews with managers and CEOs of 4 companies located in Warsaw were conducted. In addition, two academic expert panels with specialists from University of Lodz and Lappeenranta University of Technology were carried out in order to support the findings. The study found out that in case of companies which purpose is to create positive impact and develop sustainable products or services by using innovative approaches, SOI activities are embedded in organizational culture and process so that it is difficult to differentiate between main business activities and SOI. In the other two cases SOI practices were in line with core business activities thus reflected the main operations and were determined as a part of CSR strategy. Activities are industry specific and are contingent upon resources and capabilities possessed. Among list of success factors management support, CEO’s personal values, dedicated and motivated team, investments in research and development, organizational culture, non-hierarchical communications channels, empowerment of employees, provision of time and space for failures were identified as key organizational capabilities facilitating integration of SOI practices. Whereas market demand, NGOs’ pressure, regulations enforced, access to external funding, networking and cooperating present external or collaborative capabilities supporting implementation of sustainability oriented innovation in companies. SOI takes a systemic approach that drives the transformation to become sustainable business embedding and integrating social, environmental and economic value creation together.