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Using stakeholder dialogue as a source for new ideas. A dynamic capability underlying sustainable innovation

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Author Info
Ayuso, Silvia () (IESE Business School)
Rodriguez, Miguel A. (IESE Business School)
Ricart, Joan E. (IESE Business School)
Abstract

This paper attempts to gain a deeper understanding of the firm's ability for integrating stakeholder insights into the process of organisational innovation within the context of sustainable development. Given the early stage of empirical research on the topic, we used an exploratory case study method of two Spanish companies that have successfully learned from stakeholder dialogue and have generated innovations that are both beneficial for the company and for sustainable development in general. The evidence from the two case studies suggests the existence of two simple capabilities - stakeholder dialogue and stakeholder knowledge integration - for generating innovations in accordance with stakeholder needs. Whereas stakeholder dialogue leverages organisational resources that promote two-way communication, transparency and appropriate feedback to stakeholders, stakeholder knowledge integration relies on non-hierarchical structures, flexibility and openness to change. The paper sheds some light on the under-researched issue of linking stakeholder dialogue and sustainable innovation, and contributes to opening the 'black box' of dynamic capabilities and advancing in the understanding of this fundamental organisational concept.

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Publisher Info
Paper provided by IESE Business School in its series IESE Research Papers with number D/633.

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Length: 21 pages
Date of creation: 29 May 2006
Date of revision:
Handle: RePEc:ebg:iesewp:d-0633

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Keywords: sustainable development stakeholders innovation capabilities

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  1. Gianmario Verona & Davide Ravasi, 2003. "Unbundling dynamic capabilities: an exploratory study of continuous product innovation," Industrial and Corporate Change, Oxford University Press, vol. 12(3), pages 577-606, June.
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