Managing the complexity of green innovation

PurposeGreen innovation can promote both environmental sustainability and economic growth. However, its development and implementation can be complex due to the need to align innovation activities within and across companies. In this study, the authors examined how this complexity can be managed by...

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Bibliographic Details
Published in:European journal of innovation management 2022, Vol.25 (6), p.850-866
Main Authors: Abadzhiev, Andrey, Sukhov, Alexandre, Sihvonen, Antti, Johnson, Mikael
Format: Article
Language:English
Subjects:
Alignment
Business Administration
Competitive advantage
Complexity
Configurations
Construction industry
Cooperation
Economic development
Environmental impact
fsQCA
Fuzzy sets
Företagsekonomi
Green innovation
Innovation
Innovations
Qualitative analysis
Sustainable development
Value analysis
Value chain
Wood construction
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Summary:PurposeGreen innovation can promote both environmental sustainability and economic growth. However, its development and implementation can be complex due to the need to align innovation activities within and across companies. In this study, the authors examined how this complexity can be managed by analyzing how individual companies combine different innovation activities to develop green innovation, and how companies along the value chain align to implement these innovations.Design/methodology/approachThe dataset comprises both interviews and a survey of senior executives from the Swedish wood construction industry. These data were first analyzed by using fuzzy set qualitative comparative analysis (fsQCA) to identify innovation activity configurations at the level of the individual company. The interviews were then analyzed to identify alignment mechanisms enabling the implementation of green innovation along the value chain.FindingsAt the company level, the authors found three innovation activity configurations with varying levels of complexity: (1) systemic innovation by proactive companies, (2) process innovation by reactive companies and (3) inaction by technology-independent companies. On the value chain level, the authors found three alignment mechanisms that facilitate the implementation of green innovation along the value chain. These mechanisms promote cooperation by increasing efficiency, opening up new market opportunities and increasing the level of servitization.Originality/valueThis paper analyzes the complexity of green innovation and provides novel insights into how complexity is managed at the level of both the individual company and the value chain.
ISSN:1460-1060
1758-7115
1758-7115
DOI:10.1108/EJIM-02-2022-0098