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Influenced by factors such as fluctuations in market supply and demand and the rapid development of new technologies, manufacturing companies are facing greater challenges to transform and upgrade. The existing relevant studies about sustainable innovation capabilities mostly focus on classification of innovation or from a static resource-based view and less on quantitative measurement from a dynamic perspective and inter-organizational relationships. This paper takes a dynamic capabilities and social capital theory, explore the concept and dimensions of sustainable innovation capabilities and then makes development of a new scale.

This paper uses a combination of qualitative and quantitative research methodologies to develop a measure of sustainable innovation capabilities in two studies. Grounded theory methodology is used to explore the concept definition and dimensions of sustainable innovation capabilities. Exploratory factor analysis and confirmatory factor analysis are conducted to refine and validate the factor structure, and then the authors developed the sustainable innovation capabilities scale.

The results show that sustainable innovation capabilities composed of ideation capabilities, opportunity capture capabilities, agile learning, creative inheritance and networking capabilities. The sustainable innovation capabilities that firms should possess are reflected at the firm level and inter-organizational relationship level, and the culture-specific dimension of creative inheritance reflects the influence of national and organizational culture.

The research reveals the internal driving force of the manufacturer's sustainable innovation capabilities, as well as the role and uniqueness embodied in the specific culture, providing a new perspective for improving the manufacturer's sustainable innovation capabilities.

This chapter introduces the volume’s theme by describing the challenges of sustainability in the agri-food industry and the critical role of agri-food supply chains. Following a description of traditional and sustainable supply chain management practices, we discuss the likely characteristics of sustainability-oriented innovations and how organizations pursuing higher levels of economic, social, and environmental performance will need to adapt their capabilities.

Drawing on the emerging concepts and practices from sustainable supply chain management as well as traditional and emerging concepts from innovation, we develop general propositions and expectations about how organizations might address sustainable effectiveness in their supply chains. The importance of the agri-food industry to all three pillars of sustainable effectiveness and predictions about the inability to feed future populations gives the discussion a certain urgency.

Sustainability-oriented innovations in the agri-food supply chain are different from traditional innovations. We develop propositions regarding the driving motivations, their nature and scope (i.e., more radical and systemic than incremental and focused), and the importance of a multi-stakeholder approach. The 10 cases presented in the volume are summarized.

The purpose of this study is to identify the factors that contribute to the successful implementation and management of sustainable innovation in research-intensive sectors such as the life sciences industry.

The study was conducted through a combination of two methods. The first was qualitative interviews of 21 sustainability experts and leaders in the life sciences industry who were responsible for implementing sustainable innovation. They were selected through nonprobabilistic purposive sampling. The second method was thematic content analysis using the MAXQDA software.

The study identified that successful implementation of sustainable innovation in research-intensive firms begins with the alignment of the executive vision for sustainability with the business objectives of the research-intensive firm. Furthermore, implementation of sustainability practices is identified as a function of organizational reconfigurations that facilitate purposeful inflow and outflow of ideas and knowledge between internal firm resources and external stakeholders, anchored by the objectives of the research-intensive firm.

The study explicated factors only within life sciences industry based on qualitative interviews. The study offers scope for cross-sector quantitative evaluation.

To the best of the authors’ knowledge, this study is among the first studies to systematically delineate the underlying factors that govern successful implementation of sustainable innovation in research-intensive industries, through integration of the resource-based view and stakeholder theory and thereby provide a framework for research-intensive organizations to implement sustainable innovation practices.

Food sustainability is a world-acknowledged issue that requires urgent integrated solutions at multi-levels. This study aims to explore how food firms can improve their sustainability performance through digital traceability practices, considering the mediating effect of sustainability-oriented innovation (SOI) and the moderating effect of supply chain learning (SCL) for the food supply chain therein.

Hierarchical regression with a moderated mediation model is used to test the proposed hypotheses with a sample of 359 food firms from four provinces in China.

Digital traceability has a significant positive impact on the three pillars of sustainability performances among food firms. SOI (product innovation, process innovation and organisational innovation) mediates the relationship between digital traceability and sustainability performance. SCL plays moderating roles in the linkage between digital traceability and both product and process innovation, respectively.

This paper contributes as one of the first studies to develop digital traceability practices and their sustainability-related improvements for Chinese food firms; it extends studies on supply chain traceability to a typical emerging market. This finding can support food sustainability practice in terms of where and how to invest in sustainability innovation and how to improve economic, environmental and social performance.

This chapter compares and discusses the 10 sustainability-oriented food supply chain innovations described in the previous chapters. Our purpose is to address and reflect on the questions and challenges introduced in the first chapter.

The cases are first analyzed in terms of the extent to which the innovations were motivated and impacted the social, environmental, and economic dimensions of sustainability. The various sustainable food supply chain practices adopted are compared. The third section explores the innovation strategies used in the cases, including the type of strategy, the breadth and level of innovativeness of the strategy, the governance approach, and the extent of capability development required. The final section presents our conclusions.

The results suggest that to become truly sustainable, companies need to adopt a broad set of practices that address all three dimensions of sustainability, and develop strategies to make the sustainability-oriented innovation economically viable. The more radical and systemic the innovation, the more difficult it is to generate these outcomes.

The purpose of this study is to discuss policy review in the interest of sustainable innovations in Malaysia’s public procurement. This study also offers the overall relationship between existing policies related to sustainable innovations in public procurement and the coherences towards the four dimensions of sustainable innovations.

This study outlines the current policies in Malaysia which are related to sustainable innovation initiatives and explores the cohesiveness that appears disconnected and understood separately. Policy content analysis is conducted on the current policies related to sustainable innovations in the context of Malaysia’s public procurement.

This study observed that the current policies related to sustainable innovations in public procurement are actually interconnected with each other through a hierarchical framework. This study also demonstrates that the 12th Malaysia Plan has comprehensively encompassed every aspect of the environment, social, economic and innovation to contribute to one primary goal – green economic growth.

The proposed policy framework is expected to be beneficial for the administrator executive among the civil servant to connect the independent policies and, at the same time, contribute to the overall goal of green economic growth. Through a broad policy structure too, this study helps the industry player to recognize their potential in any area related to sustainable innovation.

The policy framework illustrated is new to the literature, especially in Malaysia’s context. The compilation of current policy grounded by the 12th Malaysia Plan has not been presented in any publications.

Business excellence relies heavily upon sustainable innovation. Still, sustainable innovation is an emerging concept in business practices and has yet to reach a common perception among small- and medium-sized enterprises (SMEs). This study aims to address sustainable innovation in SMEs and the factors driving sustainable innovation development.

An exploratory study was conducted to gain insight into the emerging concept of sustainable innovation in the SMEs’ context. Empirical evidence was collected from five case studies. Twenty-five interviews were conducted.

This study findings show that SMEs have different ways of understanding sustainable innovation, resulting in different approaches to integrate sustainable innovation into their business. In SMEs, sustainable innovation may not be a fixed concept due to its ambiguous boundaries and various ways of understanding. External and internal factors are driving SMEs’ sustainable innovation. It depends mainly on organizational culture and the capabilities of SMEs and their members in terms of cooperation and integration in work teams, conditions to achieve consensus, articulation of activities, coherence and commitment to the firms’ objectives. These factors collide and enhance each other and positively impact SMEs’ sustainable innovation.

The scientific relevance of this study lies in the integration of sustainable innovation research in the context of SMEs. There has been limited exploration of how SMEs perceive and engage in sustainable innovation and the factors that drive sustainable innovation development outside of large firms. This study empirically explored the concept of sustainable innovation in the context of SMEs to understand underlying factors related to sustainable innovation.

The development of more sustainable logistics calls for innovative thinking. In order to accelerate the development in the field, there is a need for increased understanding of the process behind successful implementation of sustainable logistics innovations (SLI). The purpose of this paper is to explore the SLI process, in order to identify critical factors, challenges as well as actors involved.

A multiple-case study in six Swedish retailers and logistics service providers (LSPs), successful in SLI implementations, was conducted. Both within-case and cross-case analyses were applied.

The SLI process consists of five phases. The positive relationship between formalisation and SLI success is supported. Critical activities and challenges not known from literature were found in each phase. Examples are the use of logistics and customer KPIs, quickness, developing simple concepts, using a sustainability business case template and selecting where to test SLIs. Some phases are involving many internal and external actors, while others involve few internal actors. Customers are not particularly involved, and retailers involve their LSP suppliers.

This study addresses the lack of empirical research in logistics innovation and has bridged the gap of innovation studies in other companies than in LSPs. Furthermore it has combined two developing areas, sustainable innovation and logistics innovation, into SLI. A number of critical activities and challenges, and complex patterns for actors’ involvement in the SLI process phases are explored as insights from particular cases; these results could be analytically generalised to theory.

The practical implications lie in guiding managers who wish to improve sustainability and innovativeness in logistics and, consequently, business success. Knowledge from successful companies about which phases to go through in which sequence, which challenges that can be expected and who to include in the SLI process could imply that more companies focus on SLI.

Knowledge on how to include sustainability in a clear innovation process, e.g., by making strong business cases, should imply an accelerated development of sustainable logistics in society.

This study addresses the lack of empirically-based research in logistics innovation and expands the concept to retailers.

This study attempts to create new insights into innovation management through the integration of innovation management processes and sustainable, iterative circles. Through the exploration of the use of sustainable, iterative circles in a manufacturing environment, this paper explores their role in facilitating customer-focused innovation practices. Other supporting antecedences for innovative behavior are reviewed, and their combined effect upon delivering cost-effective product developments are assessed.

Data were collected through semi-structured interviews in manufacturing organizations from the automotive industry. Interviews were conducted with senior functional managers to interpret the application of sustainable, iterative development circles. Analysis of the data was undertaken via thematic analysis based upon pertinent and emergent themes.

Sustainable, iterative development circles overcame the inherent path-dependency of traditional linear development approaches, whereas, traditional approaches structure the involvement of key business functions, iterative circles facilitate more flexible approaches to product development that more closely met the requirements of the customer, especially when those requirements are in a state of flux.

This iterative, customer-centric approach to product development reflects the increasingly dynamic market environments in which manufacturing organizations operate. Using this approach helps to focus the organization’s attention upon customer requirements rather than the challenges of adhering to the rigid dogma of a chosen development methodology.

This study proposes a new approach toward the development of innovations in manufacturing organizations utilizing the sustainable, iterative circles, and therefore, contrasts with the traditional, linear development methodologies that are usually employed.

The purpose of this paper is to examine the quality of collaboration towards Sustainable Energy Innovation (SEI) in Private Finance Initiative (PFI) projects. While the capacity of PFI to encourage collaboration towards innovation is largely advocated by its proponents; however, it remains to be supported by empirical evidence.

Adopting the Complex Product System (CoPS) innovation management model, the authors assess the quality of collaboration at the interface between the innovation superstructure of public sector clients and users, and the innovation infrastructure of private sector designers, contractors and operators. Two interactional elements are examined upon which the quality of collaboration is assessed: openness of communication and alignment of objectives. The authors apply the model to four new-built PFI school projects within the context of the UK government Building Schools for the Future Programme. Semi-structured interviews with total of 50 key stakeholders were used as the primary data collection method.

PFI has introduced a number of problematic issues weakening collaborative efforts towards innovation in the project environment. Particularly, the study underlines the restricting internal contractual relationships within the integrated Project Company and the misalignment of Design-Construction-Operation sustainability objectives. It also highlights ineffective communication with public sector clients and users brought in by the restricted nature of PFI engagement processes as well as the misalignment of public sector-private sector sustainability objectives.

The qualitative nature of the chosen research methodology limits the ability to generalise. The research findings need to be confirmed or rejected by means of quantitative research as representative of all PFI projects.

The study emphasizes the public authority’s role in relation to providing the necessary conditions for the creation of a collaborative environment conducive to SEI in PFI projects.

The study was able to expand the understanding of innovation and collaboration management processes in PFI projects in three respects: First, addressing the limited attention to innovation in PFI research, the study is the first to examine the quality of collaboration in PFI projects towards the implementation SEI. Second, examining the quality of collaboration in PFI projects through the lens of CoPS provides a new understanding of sustainability innovation and strongly indicates that the CoPS model should be expanded to account for the dynamics of innovation processes in the procurement of sustainable CoPS. Third, the explorative nature of the study was useful in generating research hypotheses that can form the basis for future research on SEI in PFI projects.