Systematic Review - Network for Business Sustainability

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• Experimenting with more environmentally sound process innovation • Speculative development of greener products (Bowen, 2002) 6. Extend search activities into unfamiliar fields: use peripheral vision to search for weak signals Organizational Transformation firms extend their search activities into unfamiliar fields to search for indications of future sustainability concerns. Metaphors such as “using peripheral vision” or “searching for weak signals” emphasize that such searching extends beyond conventional market intelligence activities. Weak signals, which are precursors to significant trends and change mechanisms, emanate from a diversity of sources, including community action groups, social entrepreneurs, lobbyists and activists (Mulgan, Tucker, Ali & Sanders, 2007). Hart and Sharma (2004) propose a similar concept, “radical transactiveness,” a dynamic capability which seeks to systematically identify, explore and integrate the views of stakeholders on the “fringe” or in the “smart mob” specifically in order to manage disruptive change and create competitive imagination. Firms need to be alert to, pick up and use such weak signals (Aschehoug, Boks & Støren, 2012; Holmes & Smart, 2009; Joshi, 2010) by investing in the absorptive capacity of the firm (Cohen & Levinthal, 1990), reaching out and bridging new communities of stakeholders (Hollander, 2003) and through entrepreneurial “bricolage” — in other words, creatively using scarce resources (Halme, Lindeman & Linna, 2012). In a study of pioneering technological innovation directed to low-income markets, entrepreneurial bricoleurs acting at the peripheral edges of the organization were able to pick up signals in the potential market through their membership of community organizations (Halme et al., 2012). They then built new networks and influenced key stakeholders to mobilize resources to promote pro-poor business models. Such “institutional entrepreneurs” act at all levels, both inside and outside the organization, helping to build trust, broker solutions, secure resources and promote change. They create opportunities and dissipate resistance while building capacity, momentum and resilience of new approaches. 7. Unlearn outdated capabilities For Organizational Transformation, firms must collaborate with and learn from diverse stakeholders. Firms dealing with bottom-of-the-pyramid markets and innovating in resource-constrained environments may find that their R&D processes, which are accustomed to working with large resource inputs, become a core rigidity. Firms may need to unlearn outdated capabilities and, instead, draw on local talent pools to develop and implement the appropriate product designs and help reduce costs (Ray & Ray, 2010). In the case study of the development of the so-called people’s car, the Tata Nano (see page 39), Tata mined suppliers for innovative ideas for reducing the costs of design and manufacturing by leveraging and exchanging knowledge (Ray & Ray, 2011). Innovating for Sustainability 44
PROCESS INNOVATION A number of categories of activity, such as process innovation, span the different contexts of SOI. Although the labels may be common, the activity content of the categories differs, reflecting the shift from a wholly economic orientation to greater privileging of the dimensions of the Triple Bottom Line. 1. Adopt new process platforms such as closed-loop manufacturing and cradle-to-cradle innovation 2. Develop new networks into the wider social, economic, legislative systems and, particularly, into supply chains; develop long-term collaborative approaches with external partners 3. Start from a vision of the future and work backward, rather than moving forward from the present; set audacious goals even when the route may be unclear 1. Adopt new process platforms such as closedloop manufacturing and cradle-to-cradle innovation Firms innovating in the Organizational Transformation space close the loop in their processes. This bioinspired approach seeks to recover waste in production processes (and disposal) and turn it into new resources for production: it is exemplified in cradle-to-cradle innovation (McDonough & Braungart, 2002), closedloop production systems (Machiba, 2010) and the circular economy (Geng, Sarkis & Xue, 2012). The circular economy, for example, describes an industrial economy that is restorative and eliminates waste. It comprises two types of material flow: biological nutrients, which are designed to re-enter the biosphere safely, and technical nutrients (non-biological materials), which are designed to circulate at high quality permitting re-use and so preserving or enhancing their economic value and minimizing waste (McDonough & Braungart, 2002). Cradle-to-cradle and circular economy models challengethe notion of a linear supply chain. Products are designed for disassembly: they can be returned to manufacturers once their useful life is over to be reprocessed and recycled into new products. They are part of a supply system. The manufacturer takes on the responsibility for the product at the end of its useful life and so is inspired to design products with the core considerations of disassembly and reuse. One key to successful cradle-to-cradle or closed-loop innovation is to design out components that could be harmful to the biosphere (Birkin et al., 2009). In Practice “At the end of their life cycle, all types of products we produce are reusable in our production processes for future uses: they can be removed from the wall or flooring, cleaned and used again in production processes, giving life to new products’’ (Dangelico & Pujari, 2010: 478). According to the originators of the concept (McDonough & Braungart, 2002), cradle-to-cradle innovation can be achieved through the following activities: • Signalling intentions: committing to the new paradigm rather than continuing to pursue incremental improvement • Restoring: striving for good growth rather than just economic growth Innovating for Sustainability 45
Page 1 and 2: innovating for sustainability A Sys
Page 3 and 4: Through innovation, companies can b
Page 5 and 6: Dear Reader, I’m pleased to share
Page 7 and 8: introduction This systematic review
Page 9 and 10: To address the needs of all firms,
Page 11 and 12: origins of SOI and its relation to
Page 13 and 14: customers or the acquisition of new
Page 15 and 16: We developed our model of contexts
Page 17 and 18: From the models reviewed, we envisi
Page 19 and 20: Dimension 2: Stand-alone/integrated
Page 21 and 22: OPERATIONAL OPTIMIZATION ORGANIZATI
Page 23 and 24: The previous chapters presented a m
Page 25 and 26: Internally, SOI can require working
Page 27 and 28: Operational Optimizers must source
Page 29 and 30: 2. Use available tools such as envi
Page 31 and 32: LCA has multiple variants (Kaval, 2
Page 33 and 34: • Reducing energy and chemical us
Page 35 and 36: 4. Ensure functionality is not comp
Page 37 and 38: In the Organizational Transformatio
Page 39 and 40: In Practice The contribution of lon
Page 41 and 42: sustainability goals and objectives
Page 43: eports or as social and environment
Page 47 and 48: In Practice The cradle-to-cradle me
Page 49 and 50: In Practice InterfaceFLOR is gradua
Page 51 and 52: In Practice There is a potentially
Page 53 and 54: development on the needs of the poo
Page 55 and 56: such innovations. Much more difficu
Page 57 and 58: discussion Firms are re-embedding t
Page 59 and 60: competitive advantages. Third, firm
Page 61 and 62: previous reviews Earlier literature
Page 63 and 64: The current study extends these pre
Page 65 and 66: additional materials The appendices
Page 67 and 68: appendix 1: methodology The systema
Page 69 and 70: SEARCHING THE SCIENTIFIC LITERATURE
Page 71 and 72: Search methods We used the followin
Page 73 and 74: At the outset of this project, the
Page 75 and 76: Data were coded according to biblio
Page 77 and 78: Table 8 JOURNALS PROVIDING ONLY A S
Page 79 and 80: DESIGN OF STUDIES Sectoral distribu
Page 81 and 82: which speaks to the contestation ar
Page 83 and 84: The studies in our sample are mixed
Page 85 and 86: THE ELEMENTS OF INNOVATION A tradit
Page 87 and 88: appendix 3: definitions of SOI This
Page 89 and 90: SUSTAINABILITY-RELATED AND SUSTAINA
Page 91 and 92: STUDY MODEL Alexander Ballard Ltd.
Page 93 and 94: appendix 6: frugal, reverse and soc
Page 95 and 96:
Benyus, J.M. (1997). Biomimicry: in
Page 97 and 98:
Del Río, P., Carrillo-Hermosilla,
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Hunt, C.B. & Auster, E.R. (1990). P
Page 101 and 102:
Machiba, T. (2010). Eco-innovation
Page 103 and 104:
Reay, T., Berta, W. & Kohn, M.K. (2
Page 105 and 106:
Wagner, M. (2007). On the relations
Page 107:
Network for Business Sustainability
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