A Systematic Review on Sustainability-Oriented Innovation in the Social Enterprises

Abstract

Sustainability-oriented innovation (SOI) is a subset of innovation that focuses on not just maximizing profits but also on minimizing negative consequences for the environment and society. Despite the fact that the study of SOI has grown rapidly in recent years, little is known about how SOI takes place in social enterprises (SEs). The aim of this study is to understand SOI in SEs with two research questions focusing on the current state of the research and the identification of emergent themes and subthemes regarding SOI practices in SEs. The method used was a systematic review of the scholarly literature guided by the PRISMA protocol. The systematic search and filtering process resulted in 27 studies, which were filtered out of a total of 100 studies. The study’s findings show that process/organizational innovation, such as business model transformation and stakeholder management to increase SEs’ societal impact, is widely practiced in SEs. Unlike SOI in commercial organizations, which is dominant in the subcategory of SOI of environmental innovation, SOI in SEs is more prevalent in social innovation. Several challenges faced by SEs in developing SOIs were also revealed, including a lack of long-term funding, low entry barriers for potential competitors, and inefficiencies. A number of potential future directions were also discussed.

Eco-Innovation Performance of Lithuania in the Context of European Environmental Policy: Eco-Innovation Indicators and Efficiency

“…To finish the preceding debate on the importance of eco-innovation in deciding on the application of the concept of sustainable economic growth, it is obvious that eco-innovation is vital for attaining sustainable growth in light of the globalization of economies and its effect on global pollution and the use of scarce resources. Thus, eco-innovation arises as a chance to develop sustainable technologies for production sustainability, green energy, eco-efficiency, and consumption awareness [8][9][10]15,22]. Roleders et al [44] evaluated the main components of eco-innovation activities in achieving sustainable development.…”

“…Industry must not only reframe its social and economic duties regarding the environment, but also invest in eco-innovation activities that maximize economic gain while minimizing environmental harm [6]. In the literature, eco-innovation [7] was formulated in various ways, such as Green Innovation [8,9], Sustainable Innovation [10,11], Ecologic Innovation [12,13], and Environmental Innovation [14,15]; however, the concept of eco-innovation has been used significantly in recent years [16]. The term "eco-innovation" refers to the development of novel and economically viable goods, processes, systems, services, and design processes that satisfy human needs while reducing the consumption of natural resources and the emission of hazardous chemicals through their existence [17].…”

“…The EIO, similar to the Oslo Manual, categorized eco-innovation into four primary groups as product eco-innovation, process eco-innovation, organizational eco-innovation, and marketing eco-innovation [17]. Some studies in the literature place greater emphasis on the relationship between the environmental aspects of product and process eco-innovation [10]. Rennings (1998) [33] categorizes eco-innovations as technological, organizational, and social, taking non-commercialization of the eco-innovation into mind, and thus defines corporate eco-innovation.…”

Export performance in four ASEAN countries: The role of international quality certification, information and communication technology capability, and innovation

“…First, ICT plays a role in driving economic growth and can also directly increase productivity, while the second role is that ICT can lead to firm innovation which can also increase the total factor productivity (TFP) of the economy (Díaz‐Chao et al, 2015). ICT‐based innovations and applications have become major drivers of enhanced organizational performance, economic growth, and social change (Harsanto, Mulyana, Faisal, & Shandy, 2022; Harsanto, Mulyana, Faisal, Shandy, & Alam, 2022; Yunis et al, 2018).…”

Toward Sustainable Development: The Causes and Consequences of Organizational Innovation

“…A study by Aouadi and Marsat [1] also suggested that the management of companies that integrate ESG strategies are better able to secure competitive advantage, improve operational efficiency, maintain reputation, reduce waste, and ultimately enhance shared value and sustainability with stakeholders. A study by Harsanto et al [2] has reviewed the literature on sustainability-oriented innovation in social enterprises, which found that process and organizational innovation, such as business model transformation and stakeholder management, can help social enterprises to increase their social impact. Mercedes Rubio-Andrés and Abril [3] discussed that sustainability-oriented innovation is closely related to organizational values.…”