The United Nations' Sustainable Development Goals (SDGs) have emphasized the role of businesses in addressing global environmental and social challenges. As a result, companies are increasingly focusing on sustainability and integrating sustainable development goals into their business models. However, this transition presents complex and uncertain challenges, often referred to as wicked problems, as they involve multiple stakeholders with competing values. The complexity of sustainability challenges requires businesses to stimulate innovation and adapt their business models to be more inclusive, environmentally friendly, and innovative. In addition, managing innovation for sustainability is challenging, as it demands specific competencies and the ability to engage in broad activities by driving innovation for sustainable competitive advantage.
Previous research has made significant strides in examining competencies that are essential for leaders in addressing sustainability challenges and promoting innovation. However, there is still a lack of clarity regarding the specific competencies that leaders in companies should possess to tackle sustainability challenges and drive innovation effectively. The challenge lies in establishing a solid understanding of the relationship between sustainability competencies and their role in solving organizational sustainability issues. Consequently, the primary goal of this study is to investigate how managerial competencies can drive innovation for sustainability within organizations. By establishing this research objective, a corresponding research question was formulated.
How do individual sustainability competencies drive innovation for sustainability?
In order to address the question at hand, a comprehensive literature review was conducted to gain an understanding of the various definitions of innovation, the explored sustainability competencies, the role of leadership in sustainability innovation, and the existing arguments regarding competencies and innovation in prior studies. The insights obtained from the literature review were then used to formulate specific research questions, which guided the study's approach of utilizing semi-structured interviews to gather relevant data. Thirteen individuals representing three distinct industries were selected to participate in the interviews, sharing their experiences and perspectives on the subject matter. Following data collection, the gathered information was coded and analyzed, focusing on identifying common themes based on a similar context.
The study provides valuable insights into the fields of management and innovation by highlighting the significance of possessing diverse sustainability competencies for managers. These competencies play a crucial role in shaping the innovation capabilities of managers, thereby acting as a bridge in enhancing innovation and expanding organizational capabilities. The research identifies three distinct patterns that emerge as a result: organizational learning capabilities, collaboration capabilities, and stakeholder engagement capabilities.
Firstly, individual competencies such as system thinking, future thinking, tech competencies, and continuous learning enhance knowledge on an individual level, necessitating organizations to develop their own organizational learning capabilities to integrate and benefit from these competencies. Secondly, competencies such as emotional empathy, embracing diversity, and interpersonal skills contribute to collaboration capabilities at the organizational level, fostering better communication, positive relationships, and innovative solutions. Lastly, competencies related to stakeholder engagement, such as integration, influencing, and practical communication, empower individuals to drive the adoption of sustainability in innovation projects, facilitating effective communication with customers and involving diverse actors in decision-making processes. These patterns are developed when managers actively engage in collaboration with both internal and external stakeholders and involve them in sustainability innovation activities on an ongoing basis.
While the study primarily explores individual competencies, the discussion highlights the significance of organizations in fostering a supportive environment and establishing routines that enable individuals to effectively utilize their competencies in driving innovation. Therefore the study also delivered a framework targeted to individual and organizational management to enhance sustainability competencies at the individual level. Managers are encouraged to engage in industry-specific training programs actively, embrace a dynamic mindset that promotes continuous learning and the adoption of emerging best practices, and possesses intrinsic motivation, where individuals are driven by personal values and a desire to contribute to a better future. Simultaneously, at the organizational level, effective communication of sustainability objectives require to be delivered. At the same time, it is crucial to implement sustainability initiatives throughout all project levels of the organization. Lastly, through the recruitment process, organizations should prioritize candidates whose competency profiles align with the organization's sustainability strategies.