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Connecting strategic orientation, innovation strategy, and corporate sustainability: A model for sustainable development through stakeholder engagement

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  • Johannes W. F. C. van Lieshout
  • Andre H. J. Nijhof
  • Gijs J. W. Naarding
  • Robert J. Blomme

Abstract

This paper aims to enhance our understanding of the relationship between organizations' strategic orientation (i.e., instrumental, equidistant, and stewardship) and their innovational strategy (i.e., organizational ambidexterity and open innovation), and this relationship's influence on their sustainability performance. We expected organizations' strategic orientation to influence their innovational strategy and exhibit better corporate sustainability. We focused on 12 different multinational organizations in the Eurozone and found that inbound open innovation acts as a driver for corporate sustainability while simultaneously positively enabling organizations to pursue both financial and social initiatives. After suggesting open innovation as a new corporate sustainability antecedent, we only found empirical evidence of inbound open innovation. However, we would suggest that if organizations incorporated outbound open innovation in their strategy, they could likely improve their corporate sustainability. Also, we found that achieving an equidistant or stewardship orientation paves the way for sustainability to become an integral part of an organization's innovational culture and actualizes the organization's strategic behavior. Our findings further contribute to a deeper understanding of organizations' characteristics as their sustainability commitment grows and as they move from an instrumental to a stewardship orientation and implement an open innovational strategy.

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  • Johannes W. F. C. van Lieshout & Andre H. J. Nijhof & Gijs J. W. Naarding & Robert J. Blomme, 2021. "Connecting strategic orientation, innovation strategy, and corporate sustainability: A model for sustainable development through stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4068-4080, December.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:8:p:4068-4080
    DOI: 10.1002/bse.2857
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    3. Patrícia Tourais & Nuno Videira, 2024. "Sustainability transition strategies in a business context: A co‐creation process in the Portuguese hospitality sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 600-628, January.
    4. Mark Anthony Camilleri & Ciro Troise & Serena Strazzullo & Stefano Bresciani, 2023. "Creating shared value through open innovation approaches: Opportunities and challenges for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4485-4502, November.
    5. Keke Bai & Farid Ullah & Muhammad Arif & Sahar Erfanian & Saima Urooge, 2023. "Stakeholder-Centered Corporate Governance and Corporate Sustainable Development: Evidence from CSR Practices in the Top Companies by Market Capitalization at Shanghai Stock Exchange of China," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    6. Letycja Sołoducho-Pelc & Adam Sulich, 2022. "Natural Environment Protection Strategies and Green Management Style: Literature Review," Sustainability, MDPI, vol. 14(17), pages 1-25, August.

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