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Systematic Review - Network for Business Sustainability

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Operational Optimizers must source and integrate<br />

knowledge relating to materials and energy use,<br />

pollution and waste creation, and the product life cycle.<br />

This knowledge can come from multiple sources, such<br />

as databases that assess the life cycle impacts of<br />

materials. Firms with effective knowledge management<br />

processes are more likely to be sustainable innovators;<br />

knowledge management is a necessary sub-capability<br />

underlying sustainable innovation (Ayuso et al., 2011).<br />

Firms must also be prepared to recruit external<br />

expertise to assist in tasks such as life cycle analyses<br />

and materials selection when necessary.<br />

1. Exploit existing knowledge management<br />

capabilities to identify and access relevant<br />

knowledge; reframe internal communications to<br />

focus on sustainability; unlearn existing knowledge<br />

that contradicts the firm’s sustainability principles<br />

Even at the beginning of the SOI journey, such as when<br />

adopting cleaner technologies, lack of the appropriate<br />

expertise can constrain firms’ ef<strong>for</strong>ts. Knowledge<br />

management is important <strong>for</strong> conventional innovation,<br />

but must be re-thought <strong>for</strong> SOI. Organizations must<br />

reframe their internal communications, reconfigure<br />

their internal relations, initiate new conversations and<br />

“unlearn” and replace redundant knowledge, such as<br />

that relating to unsustainable product components<br />

(Bossink, 2007; Magnusson, Lindström & Berggren,<br />

2003).<br />

2. Fill competence gaps through training, targeted<br />

recruitment and the import of expertise; integrate<br />

diverse elements of TBL considerations across the<br />

firm by issuing and monitoring guidelines<br />

Collaborations provide access to useful knowledge <strong>for</strong><br />

SOI, but the newly acquired knowledge must then be<br />

appropriately managed within the firm (Ayuso et al.,<br />

2011). Firms must have sufficient absorptive capacity<br />

(Cohen & Levinthal, 1990) — that is, the capability to<br />

absorb and integrate new knowledge. For example, in a<br />

novel partnering arrangement, suppliers worked with an<br />

assembly plant together to implement new technology<br />

by integrating the suppliers’ detailed knowledge of<br />

paint chemistry and environmental effects with the<br />

automakers’ detailed knowledge of final product<br />

requirements and assembly plant operations (Geffen &<br />

Rothenberg, 2000).<br />

The likelihood of successful SOI increases when<br />

more employees are specialized or have expertise in<br />

sustainability-related domains (Lee, 2009). Firm-level<br />

environmental capabilities can be enhanced in several<br />

ways: benchmarking and programs <strong>for</strong> reviewing<br />

products, services and operations; investments in<br />

employee training; cross-functional working; and<br />

inter- and intra-sectoral networking (Zwetsloot, 2001).<br />

For example, ABB bought a manufacturing firm<br />

that had the technical competences that it required<br />

but lacked (Sandström & Tingström, 2008). Firms<br />

can fill knowledge and competence gaps by hiring<br />

environmental specialists and by recruiting employees<br />

at all levels who have interests and skills in sustainability.<br />

Environmental training programs, especially <strong>for</strong> R&D<br />

staff, will support the firm’s culture of SOI (Lee, 2009;<br />

Petruzzelli et al., 2011).<br />

Environmental co-ordinators can further integrate<br />

sustainability thinking and behaviour (e.g. Pujari, Wright<br />

& Peattie, 2003) by integrating the diverse elements of<br />

Innovating <strong>for</strong> <strong>Sustainability</strong> 27

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