Innovation capabilities for sustainability: a comparison between Green and Gray companies

Abstract

PurposeThis paper aims to identify and compare the arrangements of innovation capabilities and their correlation with the socio-environmental responsibility of two groups: companies with less socio-environmental concern (Group Gray) and companies with greater socio-environmental concern (Group Green).Design/methodology/approachDescriptive and quantitative research with 1,322 Brazilian manufacturing companies was conducted. We analyzed (1) the actual arrangement of capabilities and (2) the ideal arrangement of capabilities with the greatest impact on innovation.FindingsResults suggest that there is a difference in the arrangement of capabilities between the two groups. Also, there is a difference between the capabilities that effectively receive the companies' attention and the capabilities that should be valued and developed. Green companies must focus their efforts on Transaction capability, followed respectively by Management, Development and Operation capabilities. Gray companies must focus on Development capability, followed by Management, Transaction and Operation capabilities.Originality/valueBy identifying the ideal capability arrangement, this research provides important information that can guide managers in planning internal strategies for investments, prioritizing management efforts and rearranging capabilities to boost innovation for sustainability.

The state of the art of innovation management: insights from a retrospective review of the European Journal of Innovation Management

“…The second emerging or declining theme is green innovation, which is made up of topics such as environmental innovation, eco-innovation, sustainable innovation and sustainable development. This is also seen through studies on the antecedents of green innovation (Cui et al, 2021;Song et al, 2021), the antecedents of green innovation adoption in SMEs (Jun et al, 2021), the democratization of the innovation process and eco-innovation (Weigt-Rohrbeck and Linneberg, 2019), the environmental innovation benefits (Di Paola and Russo Spena, 2021), the relationship between green innovation and firm value (Asni and Agustia, 2021), and the innovation capabilities for eco-innovation (Ostermann et al, 2022). It is evident that research under this theme is fairly coherent and the internal ties of topics within this theme would increase over time.…”

Innovation capabilities, innovation strategies and export performance: the moderating impact of corporate social responsibility

“…Based on the RBV, companies' capabilities are the foundation of their competitive advantages (Barney, 1991) as such competencies are precious, exceptional and hard to emulate. In this regard, Ostermann et al (2021) consider dimensions like transaction capability, followed respectively by management, development and operational capabilities in their research. Moreover, Guan and Ma (2003) and Oura et al (2016) considered innovation capabilities as a second-ordered construct divided into two core innovation capabilities, including R&D, manufacturing and marketing capabilities, as well as supplementary innovation capabilities such as learning, organizational and strategic capabilities.…”

Social, environmental, and economic dimensions of innovation capabilities: Theorizing from sustainable business

“…The environmental dimension is linked to the preservation of the environment. To be environmentally sustainable, companies need to consider the environmental benefits; commercial products; functions of mediation between the atmosphere, soil, and surface; release of gases; and other consequences and impacts of their actions on the natural ecosystem (e.g., flora and fauna) (Axsen & Kurani, 2013; Elkington, 2001; Ostermann et al, 2022). Commonly, environmental sustainability in business ensures pollution prevention, waste recycling, and energy conservation (Chen et al, 2006).…”

“…Thus, integrating sustainability precepts in the Technology Development capability improves the R&D process for sustainable product creation (Ostermann et al, 2022). Another example is Transaction capability's role in improving sustainable innovations in distribution and consumption channels, such as creating platforms that help consumers return used products for recycling (Ostermann et al, 2022). Also, companies need the support of stakeholders (e.g., suppliers and distributors) to improve sustainability‐oriented innovation, highlighting the role of inter‐organizational transactions to innovate products with social and environmental values (Goodman et al, 2017).…”