Sustainability Innovation Cube — A Framework to Evaluate Sustainability-Oriented Innovations

Abstract

Corporations increasingly subscribe to the principles of corporate sustainability, which is generally described as the integration of economic, environmental and social dimensions. Concerning innovation management, this emphasises the role of sustainability-oriented innovations (SOI). SOI is considered a tool both to address sustainability issues and to tap into new customer segments and markets. Yet SOI are very risky: both their market success and non-economic sustainability are uncertain. This paper presents a generic model termed the "Sustainability Innovation Cube" (SIC) for structuring innovations' sustainability effects in order to better inform corporate decision-makers about how to minimize the directional risk of SOI. The model includes the three dimensions: target, life cycle and innovation type. A qualitative expert study reveals the opportunities and challenges related to the developed model. Finally, practical implications are derived, limitations are discussed and a brief outlook is given.

When technological discontinuities and disruptive business models challenge dominant industry logics: Insights from the drugs industry

“…Qualitative expert studies are useful to access and understand practitioners' visions (Hansen et al, 2009) (Eisenhardt, 1989;Glaser and Strauss, 1967), after which we completed this first data collection round with an extensive literature review on scientific, economical and managerial issues in the drug industry.…”

Encyclopedia of Corporate Social Responsibility

“…SOI incorporates even higher risks as additional environmental and social dimensions have to be considered (Dyllick & Hockerts 2002;Fichter & Paech 2004;Paech 2007;Hansen et al 2009). According to Paech et al (2007) SOI is linked to 'directional risks', as the direction of (environmental and social) sustainability impacts of innovations are highly uncertain, particularly in the long term.…”

“…In this regard, the term 'sustainability-oriented innovation' (SOI) emphasizes that sustainability is not an end point but rather a (normative) direction which is linked to (directional) risks (cf. Fichter & Paech 2004;Paech 2007;Wagner & Llerena 2008;Hansen et al, 2009). …”

“…Two major dimensions can be considered for specifying the outcomes of SOI: the target dimension and the lifecycle dimension (Hansen et al 2009). …”

“…The presented function innovations (and thereby also most of the PSS innovations) all require adaptations to a varying degree of a company's business model, and thus it is often spoken of business model innovations (Chesbrough 2007;Hansen et al 2009;Schaltegger et al 2012; see also [Business Model Innovation]). For example, a car manufacturer engaging in car sharing services follows an entirely new value proposition linked to new pricing and revenue models, completely changed sales organization, and (probably) new partners in the value chain.…”