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Extant paradox theory suggests that adopting paradoxical frames, which are mental templates adopted by individuals in order to embrace contradictions, will result in superior firm performance. Superior performance is achieved through learning and creativity, fostering flexibility and resilience and unleashing human capital. The creativity mechanism of paradox theory is limited by a few propositions and a rough underlying theoretical logic. Using the extant theoretical base as a platform, the paper aims to develop a more powerful theory using a computational simulation.

This paper relies on a psychologically realistic computer simulation. Using a simulation to generate ideas from stored information, one can model and manipulate the parameters that have been shown to mediate the relationship between paradoxes and creative output – defined as the number of creative ideas generated.

Simulation results suggest that the relationship between paradoxical frames and creative output is non-monotonic – contrary to previous studies. Indeed, findings suggest that paradoxical frames can reduce, rather than enhance, creative output, in at least some cases.

An important benefit of adopting paradoxical frames is their capacity to increase creative output. This assumption is challenging to test, because one cannot measure private cognitive processes related to knowledge creation. However, they can be simulated. This allows for the extension of current theory. This new theory depicts a more complete relationship between paradoxical frames and creativity by accounting for subjective differences in how paradoxical frames are experienced along two cognitive mechanisms – differentiation and integration.

The purpose of this paper is to connect the literatures on sustainability, innovation and paradox to suggest that sustainability constraints – simultaneously addressing commercial and sustainability goals – will increase organizational innovation.

Drawing from the literatures on paradox, innovation and sustainability, the authors develop theory about how managers can deliberately enhance the generation and implementation of creative ideas within their organizations.

The authors build on the existing literature that suggests sustainability considerations should be strategically and deeply integrated elements of business activity by developing arguments about how such integration improves organizational performance. The authors argue sustainability considerations, by creating unique forms of constraints, improve organizational success by enhancing creative idea generation and implementation.

Even strategic leaders espousing to only maximize economic efficiency face the challenge of effectively managing sustainability constraints. The discrepancy between what they should do and the problems they face means strategic leaders often have fewer tools to manage and reflect on their own decision-making than is available in the management literature. This paper presents arguments from diverse research that describes potential decision processes and their outcomes.

This paper highlights an important shift in how sustainability constraints are fundamental drivers of long-term organizational performance.

Extant literature treats the simultaneous attention to sustainability concerns and commercial success as difficult accomplishments of clever strategic leaders. Instead, the authors propose that simultaneous attention to sustainability and commercial imperatives is fundamental to long-term organizational success, because it is a powerful determinant of new products, services and business models.