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Full summary of Management of Sustainable Innovation
In this document you will find images of slides used during the lectures. Moreover, examples of different topics and concepts are provided.
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Management of SustainabilityLecture 1
Learning objectives:
Gain knowledge of what drives and necessitates organizations to
adopt sustainable innovation.
Gain knowledge of the three main approaches to sustainable
innovation and be able to explain how they differ from one
another.
Be able to evaluate sustainable innovation for shared value
creation and the debate surrounding the concept of shared value
creation.
Articles:
Adams, Jeanrenaud, Bessant, Denyer, & Overy (2016): This is a nice overview of
sustainable innovation literature. They map out the strategy, process, learning,
linkage, and organizational activities of the three main approaches to sustainable
innovation. You need to know these three approaches and how they are different from
one another. You can skip the section "Stage 2: Systematic review of SOI" [except the
bullet points above "descriptive summary" on p. 187]. Please thoroughly read the rest
of the article. We will use the model in figure 3 to classify and make sense of the
sustainable innovations we discuss in this class.
Porter & Kramer (2011): These are the scholars that popularised the term shared
value creation (SVC). This is perhaps the most well- known article written on the
topic. This is a short management article that presents shared value creation as the
gold standard for sustainable business. Their perspective on SVC is what we call the
'strategic perspective' in this class. You must know this article and be able to compare
their strategic perspective to the critical perspective of SVC by Crane.
Crane, A., Palazzo, G., Spence, L. J., & Matten, D. (2014): These scholars
represent a different way of thinking about shared value creation. They are very
critical of Porter and Kramer (original authors), pay attention to and understand their
critiques. Their perspective on SVC is what we call the 'critical perspective' in this
class. Do you agree with their critical view?
Slides:
, Sustainable development – Integration of the Three Dimensions of Sustainable Development
The Changing Role of Business in Society (Porter & Kramer, 2011)
Need a shift aways from:
o Shareholder and a short-term profit orientation towards
Which is?
o Stakeholder and shared value
Bring business and society back together
Economic value and conservation are not necessarily incompatible
How is this different from corporate social responsibility?
Shared Value Creation (CSV) (Porter & Kramer, 2011)
Societal needs should define markets
Expanding the total pool of economic and social value
Societal value creates economic value
Important: This does not necessarily raise costs for firms, because they can innovate to
increase their productivity and expand their markets.
Sustainable Innovation for CSV: A Strategic Management solution
“Intentional changes to an organization’s philosophy and values, as well as to its
products, processes or practices, to serve the specific purpose of creating and realizing
social and environmental value in addition to economic returns” (Adams et al., 2016)
Dimensions of Sustainable Innovation (Adams et al.)
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