Fuzzy sustainability incentives in new product development

Abstract

Purpose – This paper investigates the challenges encountered by manufacturing companies in managing sustainability in new product development (NPD). It describes six case studies of manufacturers aiming for sustainability improvements but experiencing difficulties in implementing them. Design/methodology/approach – The paper starts with a literature study. Academic literature offers explanations as to why manufacturers want to implement sustainability in NPD, and suggests methods for such implementations. This paper employs the systems theory of control to build a research framework for analyzing the challenges. Empirical data are gathered through workshops and interviews with NPD managers in the case companies. Findings – In-depth analyses have provided three insights. First, the study shows that sustainability pressures and incentives in a firm's contexts can be fuzzy or even absent. The fuzziness of sustainability incentives is often neglected in the literature on sustainability and NPD. Second, the case companies face difficulties when setting the scope, goals, and ambitions that effectively direct NPD decisions and efforts toward designing sustainable products. Third, the results show that deploying sustainability methods, tools, and metrics, such as a life-cycle assessment or design for environment (DfE), are not sufficient to achieve sustainability in NPD. These findings call for research on sustainability and NPD processes in contexts where sustainability incentives and needs are fuzzy so as to acquire insights applicable to sustainable product development management that is proactive rather than reactive. Originality/value – Instead of focusing only on the output of sustainable products, this paper presents a more nuanced perspective on managing sustainability in NPD. Moreover, by adopting the holistic perspective of the systems theory of control, the authors challenge the assumption that there are already sufficient external incentives to force companies toward greater sustainability. Consequently, in the light of proactive sustainability management, the authors recommend three tracks for further research: organization and filtering of information concerning sustainability pressures and incentives in a firm's context; and how to manage sustainability proactively rather than reactively.

Be Sustainable to Be Innovative: An Analysis of Their Mutual Reinforcement

“…The majority of these investigations focus on sustainability-oriented supply chain programs [44]. However, fewer studies relate the external sustainability programs to managing new external insights for sustainability, (e.g., [17,45]). It is argued that environmental and social sustainability development relates to the exploration of alternatives and to actions related to the new product development [7,17].…”

Recommendations for Implementing Sustainability in New Product Development for Supply Chain Management

“…In mature, sustainable NPD processes and organizations, sustainability scope and targets are clear and operational; customized tools, databases, design for sustainability methods, and supply chain tools exist; process definitions include sustainability issues; roles and responsibilities are clear; and NPD designers are experts in sustainability and are active in knowledge networks (Allen et al, 2012). It is imperative that top management develop a cohesive strategy (Alblas et al, 2014) that aligns the firm and its associated supply chains toward delivering sustainable products and services. Corporations that are beginning to address sustainability should focus on what sustainability means for their business and products through defining a sustainability strategy, scope, targets, and processes first, and worry less at the beginning about the metrics (Allen et al, 2012).…”

Managerial Best Practices to Promote Sustainable Supply Chain Management & New Product Development

“…[12,29,[38][39][40], is essential and includes strategy development, resource allocation, financial support and support for a common, shared information system. Top management needs to actively promote sustainability through its vision, mission statement, scope, and goals towards directing NPD decision towards sustainable products [34]. Research supports the best practice in sustainable NPD as developing a sustainability vision and explicit strategic targets [41,42].…”

“…Research supports the best practice in sustainable NPD as developing a sustainability vision and explicit strategic targets [41,42]. (Unfortunately, in many industries and firms, sustainability pressures and incentives may be absent or fuzzy [34], and companies struggle with developing a sustainable vision [18]). Recent research demonstrates that many companies have some level of sustainability in its strategy and vision [18].…”

“…Current literature reviews provide limited overviews of difficulties and challenges -such as cost implications, inadequate knowledge and skills, ambiguous laws and regulations, and communication and coordination complexity-in managing sustainability in NPD [31,34]. While current efforts appear to focus on industry and policy levels, the managerial level lacks direction and attention to integrate sustainability into NPD practices.…”