Sustainable innovation is critical because it is a driver for sustainable development, and it is a core business concept for creating and maintaining a sustainable competitive edge. However, maintaining sustainable innovation over the long run is difficult in the current turbulent and complex environment. The article contributes to the literature by presenting an open system perspective of sustainable innovation with practical applications for organizational redesign. This will require the engagement and the integration of the parts of the organization, its culture, purpose, structure, processes, functions and manner by which it interaction with its containing system. It also necessitates redesigning and transforming organizations from their current deterministic and animated forms into social systems. Directions for further research and theory development are presented.