Systematic Review - Network for Business Sustainability

in-house expertise regarding such matters as regulatory
obligations, changes in raw materials, product redesign
or life-cycle assessment methodologies. Collaborations
and stakeholder relationships provide diverse and new
sources of knowledge to support SOI. Sustainabilityoriented
innovators actively collaborate with internal
and external stakeholders to identify useful and relevant
knowledge.
1. Co-operate and network externally to
compensate for lack of resources or lack of
expertise and to enhance legitimacy and social
licence to operate
Traditional innovation studies have pointed to firms’
increasing co-operation with external sources of
specialist knowledge, such as universities and lead
users, as an important factor in their innovation
performance (Chesborough, 2003; Von Hippel, 1986).
Such collaborations reduce the complexity of SOI —
even more so than in the development of conventional
innovations (e.g. Ayuso et al., 2011; Petruzzelli et
al., 2011). A shared commitment to sustainability
considerations promotes collaboration.
Stakeholder collaboration describes diverse
engagements both inside and outside the boundaries
of the firm with, for example, regulators, value-chain
associates, industrial or commercial customers,
waste-disposal firms, recycling firms, competitors,
trade associations, scientific institutions, trade unions,
government agencies, lobby and special-interest
groups, NGOs, the wider public and media. Each may
contribute to SOI by sharing their knowledge.
For small- and medium-sized enterprises (SMEs), the
stability and recurrent transactions of their network
are key to improving their environmental performance
(Biondi, Iraldo & Meredith, 2002).
In Practice
Network collaborations allow technological
innovations to be applied to similar
production processes and products. In the
textiles sector, a small number of SMEs
(including competitors, hence co-opetition)
participating in a European Commission
program invested in a single R&D project,
sharing financial resources to buy a pilot
plant for testing production processes. The
circulation of know-how in these networks
is a major facilitating factor in developing
innovations. Adapted from Biondi et al.
(2002).
Similarly, in the automotive industry, fuel-cell technology
development has occurred in international networks,
with firms strategically acquiring access to emerging
competencies (Peters & Coles, 2006).
The knowledge component of these collaborations
is particularly important. Because of the complexity
of sustainability issues, firms need collaborators who
can provide complementary knowledge-intensive
competencies. Collaborations provide opportunities
for learning about desirable sustainability solutions,
discontinuous innovations and market opportunities
(Könnölä, Carrillo-Hermosilla & Gonzalez, 2008).
Collaboration with diverse actors also supports a
company’s social licence to operate.
2. Collaborate internally and across functions
to integrate SOI across the firm and enhance
opportunities for new product success
Innovating for Sustainability 24