Abstract
In this chapter, we demonstrate how open innovation can be applied to sustainability contexts. In this regard, we specifically address the leadership challenges encountered in accessing the wide variety of knowledge from multiple external stakeholders. First, we demonstrate that implementing open innovation for sustainability requires specific organizational capabilities that are different from what a firm might already possess regarding its general innovations. Second, we argue that successfully leading open innovation for sustainability entails broadening the scope of external stakeholder engagement to collaborate with non-conventional stakeholders such as local communities. Some sustainability-oriented innovation initiatives may also benefit from transactional type of stakeholder engagement where frequent interactions assist companies to establish stable search platforms and secure timely access to external knowledge.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsBibliography
Adams, R., Jeanrenaud, S., Bessant, J., Denyer, D., & Overy, P. (2016). Sustainability-oriented Innovation: A systematic review. International Journal of Management Reviews, 18(2), 180–205.
Aragón-Correa, J. A., Hurtado-Torres, N., Sharma, S., & García-Morales, V. J. (2008). Environmental strategy and performance in small firms: A resource-based perspective. Journal of Environmental Management, 86(1), 88–103.
Arnold, M. (2017). Fostering sustainability by linking co-creation and relationship management concepts. Journal of Cleaner Production, 140, 179–188.
Ayuso, S., Ángel Rodríguez, M., García-Castro, R., & Ángel Ariño, M. (2011). Does stakeholder engagement promote sustainable innovation orientation? Industrial Management & Data Systems, 111(9), 1399–1417.
Behnam, S., Cagliano, R., & Grijalvo, M. (2018). How should firms reconcile their open innovation capabilities for incorporating external actors in innovations aimed at sustainable development? Journal of Cleaner Production, 170, 950–965.
Bini, L., Bellucci, M., & Giunta, F. (2018). Integrating sustainability in business model disclosure: Evidence from the UK mining industry. Journal of Cleaner Production, 171, 1161–1170.
Bonte, W., & Dienes, C. (2013). Environmental innovations and strategies for the development of new production technologies: Empirical evidence from Europe. Business Strategy and the Environment, 22(8), 501–516.
Bos-Brouwers, H. E. J. (2010). Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practice. Business Strategy and the Environment, 19(7), 417–435.
Cainelli, G., De Marchi, V., & Grandinetti, R. (2015). Does the development of environmental innovation require different resources? Evidence from Spanish manufacturing firms. Journal of Cleaner Production, 94, 211–220.
Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology. Boston, Mass: Harvard Business School Press.
Chesbrough, H., & Bogers, M. (2014). Explicating open innovation: Clarifying an emerging paradigm for understanding innovation. In H. Chesbrough, W. Vanhaverbeke, & J. West (Eds.), New frontiers in open innovation. New York, United States: Oxford University Press.
Chesbrough, H., & Crowther, A. K. (2006). Beyond high tech: Early adopters of open innovation in other industries. R&D Management, 36(3), 229–236.
Clarke, S., & Roome, N. (1999). Sustainable business: Learning—Action networks as organizational assets. Business Strategy and the Environment, 8(5), 296–310.
Crossan, M. M., & Apaydin, M. (2010). A multi-dimensional framework of organizational innovation: A systematic review of the literature. Journal of Management Studies, 47(6), 1154–1191.
Dahlander, L., & Gann, D. M. (2010). How open is innovation? Research Policy, 39(6), 699–709.
Dangelico, R. M., Pujari, D., & Pontrandolfo, P. (2017). Green product innovation in manufacturing firms: A sustainability-oriented dynamic capability perspective. Business Strategy and the Environment, 26(4), 490–506.
De Marchi, V. (2012). Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms. Research Policy, 41(3), 614–623.
del Rio, P., Penasco, C., & Romero-Jordan, D. (2015). Distinctive features of environmental innovators: An econometric analysis. Business Strategy and the Environment, 24(6), 361–385.
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835–2857.
Faems, D., De Visser, M., Andries, P., & Van Looy, B. (2010). Technology alliance portfolios and financial performance: Value-enhancing and cost-increasing effects of open innovation. Journal of Product Innovation Management, 27(6), 785–796.
Foxon, T., & Pearson, P. (2008). Overcoming barriers to innovation and diffusion of cleaner technologies: Some features of a sustainable innovation policy regime. Journal of Cleaner Production, 16(1), S148–S161.
Freeman, R. E. (1984). Strategic management: A stakeholder perspective (p. 13). Boston: Pitman.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge: Cambridge University Press.
Frooman, J. (1999). Stakeholder influence strategies. The Academy of Management Review, 24(2), 191–205.
Galliano, D., & Nadel, S. (2015). Firms’ eco-innovation intensity and sectoral system of innovation: The case of French industry. Industry and Innovation, 22(6), 467–495.
Gassmann, O., & Enkel, E. (2004). Towards a theory of open innovation, three core process archetypes. Paper presented at the Proceedings of the R&D Management Conference, Lisbon, Portugal.
George, G., Schillebeeckx, S. J. D., & Liak, T. L. (2015). The management of natural resources: An overview and research agenda. Academy of Management Journal, 58(6), 1595–1613.
Ghassim, B., & Foss, L. (2018). Understanding the micro-foundations of internal capabilities for open innovation in the minerals industry: A holistic sustainability perspective. Resources Policy.
Ghisetti, C., Marzucchi, A., & Montresor, S. (2015). The open eco-innovation mode. An empirical investigation of eleven European countries. Research Policy, 44(5), 1080–1093.
Greenwood, M. (2007). Stakeholder engagement: Beyond the myth of corporate responsibility. Journal of Business Ethics, 74(4), 315–327.
Hall, J. K., & Martin, M. J. C. (2005). Disruptive technologies, stakeholders and the innovation value-added chain: A framework for evaluating radical technology development. R&D Management, 35(3), 273–284.
Hall, J. K., & Vredenburg, H. (2003). The challenges of innovating for sustainable development. MIT Sloan Management Review, 45(1), 61–68.
Hall, J. K., & Wagner, M. (2012). Integrating sustainability into firms’ processes: Performance effects and the moderating role of business models and innovation. Business Strategy and the Environment, 21(3), 183–196.
Hansen, E. G., Bullinger, A. C., & Reichwald, R. (2011). Sustainability innovation contests: Evaluating contributions with an eco impact-innovativeness typology. International Journal of Innovation and Sustainable Development, 5(2–3), 221–245.
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20, 986–1014.
Heldal, T., Schiellerup, H., & Aasly, K. A. (2016). Minerals for the green economy.
Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What’s the bottom line? Strategic Management Journal, 22(2), 125–139.
Holmes, S., & Smart, P. (2009). Exploring open innovation practice in firm-nonprofit engagements: A corporate social responsibility perspective. R&D Management, 39(4), 394–409.
Ingenbleek, P. T. M., & Dentoni, D. (2016). Learning from stakeholder pressure and embeddedness: The roles of absorptive capacity in the corporate social responsibility of Dutch Agribusinesses. Sustainability, 8(10).
Jamali, D., Yianni, M., & Abdallah, H. (2011). Strategic partnerships, social capital and innovation: Accounting for social alliance innovation. Business Ethics: A European Review, 20(4), 375–391.
Kassinis, G., & Vafeas, N. (2006). Stakeholder pressures and environmental performance. Academy of Management Journal, 49(1), 145–159.
Kazadi, K., Lievens, A., & Mahr, D. (2016). Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders. Journal of Business Research, 69(2), 525–540.
Ketata, I., Sofka, W., & Grimpe, C. (2015). The role of internal capabilities and firms’ environment for sustainable innovation: Evidence for Germany. R&D Management, 45(1), 60–75.
Lane, P., Koka, B., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31, 833–863.
Laursen, K., & Salter, A. (2006). Open for innovation: The role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27(2), 131–150.
Mothe, C., & Nguyen-Thi, U. T. (2017). Persistent openness and environmental innovation: An empirical analysis of French manufacturing firms. Journal of Cleaner Production, 162, S59–S69.
Murphy, M., Perrot, F., & Rivera-Santos, M. (2012). New perspectives on learning and innovation in cross-sector collaborations. Journal of Business Research, 65(12), 1700–1709.
Muscio, A., Nardone, G., & Stasi, A. (2017). How does the search for knowledge drive firms’ eco-innovation? Evidence from the wine industry. Industry and Innovation, 24(3), 298–320.
Nidumolu, R., Prahalad, C. K., & Rangaswami, M. R. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review, 87(9), 56–64.
Peng, X., & Liu, Y. (2016). Behind eco-innovation: Managerial environmental awareness and external resource acquisition. Journal of Cleaner Production, 139, 347–360.
Rennings, K. (2000). Redefining innovation—Eco-innovation research and the contribution from ecological economics. Ecological Economics, 32(2), 319–332.
Segarra-Ona, M., Peiro-Signes, A., Albors-Garrigos, J., & De Miguel-Molina, B. (2017). Testing the social innovation construct: An empirical approach to align socially oriented objectives, stakeholder engagement, and environmental sustainability. Corporate Social Responsibility and Environmental Management, 24(1), 15–27.
Sharma, S., & Henriques, I. (2005). Stakeholder influences on sustainability practices in the Canadian forest products industry. Strategic Management Journal, 26(2), 159–180.
Sharma, S., & Vredenburg, H. (1998). Proactive corporate environmental strategy and the development of competitively valuable organizational capabilities. Strategic Management Journal, 19(8), 729–753.
Spithoven, A., Vanhaverbeke, W., & Roijakkers, N. (2013). Open innovation practices in SMEs and large enterprises. Small Business Economics, 41(3), 537–562.
Suopajärvi, L., Poelzer, G. A., Ejdemo, T., Klyuchnikova, E., Korchak, E., & Nygaard, V. (2016). Social sustainability in northern mining communities: A study of the European North and Northwest Russia. Resources Policy, 47, 61–68.
Trott, P., & Hartmann, D. (2009). Why ‘open innovation’ is old wine in new bottles. International Journal of Innovation Management, 13(4), 715–736.
van der Have, R. P., & Rubalcaba, L. (2016). Social innovation research: An emerging area of innovation studies? Research Policy, 45(9), 1923–1935.
West, J., Salter, A., Vanhaverbeke, W., & Chesbrough, H. (2014). Open innovation: The next decade. Research Policy, 43(5), 805–811.
Wilson, M. (2003). Corporate sustainability: What is it and where does it come from? Ivey Business Journal (Online), 1.
Zollo, M., Cennamo, C., & Neumann, K. (2013). Beyond what and why: Understanding organizational evolution towards sustainable enterprise models. Organization & Environment, 26(3), 241–259.
Acknowledgements
We thank Wim Vanhaverbeke for encouraging us to write this chapter and for his valuable comments. Lene Foss thanks Malin Kvalheim for her assistance.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Ghassim, B., Foss, L. (2020). How Do Leaders Embrace Stakeholder Engagement for Sustainability-Oriented Innovation?. In: Pfeffermann, N. (eds) New Leadership in Strategy and Communication. Springer, Cham. https://doi.org/10.1007/978-3-030-19681-3_6
Download citation
DOI: https://doi.org/10.1007/978-3-030-19681-3_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-19680-6
Online ISBN: 978-3-030-19681-3
eBook Packages: EngineeringEngineering (R0)