Dynamic Capabilities for Sustainability: Revealing the Systemic Key Factors

Abstract

By applying systems thinking theory to capabilities literature, this paper examines the factors that support the development of dynamic capabilities towards sustainable management. For such, we conducted an in-depth single case study using Soft System Methodology (SSM) in an energy organisation from an emerging economy. Our analysis of the last twenty years of operation revealed that the organisation has developed new ways to change and adapt in a disturbing environment by integrating sustainability into three factors: (1) integrative strategy (green products, biodiversity, organic processes and self-sufficient electricity), (2) sustainable culture (sustainable mindset, environmental awareness, learning orientation and decision-making processes) and (3) organisational routines for innovation (new green processes and products, partnerships/alliances and knowledge management). Our results extend the literature by raising a conceptual framework of the fundamental dimensions of dynamic capabilities for sustainability. This is the first study that connects systems thinking and dynamic capabilities theories applied to sustainable management.

Corporate Sustainability Strategies and Decision Support Methods: A Bibliometric Analysis

“…Findings show that executives have no common understanding concerning how sustainability is related to their daily business activities [7]. In this view, managers can combine, in the process of sustainability decision-making, external and internal drivers such as ethics, resources and cost savings, employees' shared values, leadership, reputation, market, laws, competition and customers' satisfaction into their strategic decision-making process, in order to make changes in their organizations and formulate a sustainability strategy that increases economic, ecological and social success [7,[36][37][38][39]. For example, Fairfield et al [40] examined how aspects of organizations, context, and decision-making processes can be aligned to influence the implementation and success of sustainability efforts.…”

A Literature Review of Inter-Organizational Sustainability Learning

“…System-level outcomes are macro-level societal or environmental benefits [208]. Several studies identified the system-level outcomes of inter-organizational sustainability learning by discussing how these alliances and partnerships help to address SDGs [5,19,131,176,193,203,209], or previously discussed millennium development goals [210]. For instance, Dzhengiz [203] provided evidence from electric utilities focusing on alliances and partnerships that address SDG 7 and 13.…”

On the conceptualization and measurement of dynamic capabilities for sustainability: Building theory through a systematic literature review

“…Unfortunately, the resulting variety of operationalizations can easily disorient researchers. Even though it is widely agreed that sustainability should be embedded into organizational capabilities (Amui et al, 2017; Cezarino, Alves, Caldana, & Liboni, 2019; Gelhard & von Delft, 2016), enabling an organization to adapt, change, and innovate toward different sustainability‐related paradigms (Geissdoerfer, Savaget, Bocken, & Hultink, 2017; United Nations, 2015; European Commission, 2015; Borland & Lindgreen, 2013; World Business Council for Sustainable Development [WBCSD], 2010; Garriga & Melé, 2004; Elkington, 1997), most extant studies provide little discussion on the characteristics of the possible operationalizations of these capabilities. For example, there is a lack of debate on whether it is possible to distinguish sustainability‐specific DCs (e.g., “Green Dynamic Capabilities”; Chen & Chang, 2013) from traditional DCs.…”