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Yin, C.; Chang, H. The Link between Strategic Innovation and Organizational Sustainability. Encyclopedia. Available online: https://encyclopedia.pub/entry/23968 (accessed on 01 July 2024).
Yin C, Chang H. The Link between Strategic Innovation and Organizational Sustainability. Encyclopedia. Available at: https://encyclopedia.pub/entry/23968. Accessed July 01, 2024.
Yin, Chi-Yen, Hsiao-Hsin Chang. "The Link between Strategic Innovation and Organizational Sustainability" Encyclopedia, https://encyclopedia.pub/entry/23968 (accessed July 01, 2024).
Yin, C., & Chang, H. (2022, June 13). The Link between Strategic Innovation and Organizational Sustainability. In Encyclopedia. https://encyclopedia.pub/entry/23968
Yin, Chi-Yen and Hsiao-Hsin Chang. "The Link between Strategic Innovation and Organizational Sustainability." Encyclopedia. Web. 13 June, 2022.
The Link between Strategic Innovation and Organizational Sustainability
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This entry is adapted from the peer-reviewed paper 10.3390/su14116937

The academic and practical are very acquainted with both strategic innovation (SI) and organizational sustainability (OS) at present, but there are few studies discussing the correlation between SI and OS in these two subjects. 

strategic innovation organizational sustainability

1. Strategic Innovation

Strategic innovation has become a very popular keyword during the past 30 years and multitudinous well-known scholars have provided extraordinary expositions on strategic innovation [1][2][3]. Strategic innovation means that organizations can innovate in their value chain, establish new operating models, alter the rules of competition in their environment, and increase their competitive advantage, so as to obtain a fresh benefit. Anderson and Markides alleged in an article that innovation in developing markets is less about finding new customers and more about addressing issues, such as product acceptability, affordability, usability, and awareness [4]. Markides proposed that an enterprise can strategically redefine its business and catch its major competitors off guard by breaking the rules and thinking of new ways to compete [5][6]. Talke, Salomo and Kock asserted that the orientation of strategic innovation, which is aimed at discovering and satisfying emerging demands with novel technological solutions, has repeatedly been shown to be conclusive for a firm’s innovativeness and performance [7]. Strategic innovation involves the creation of growth strategies, business models, new product categories, or services that change the competition and generate a significant new value for customers, consumers, and the corporation [8][9][10].
Strategic innovation is the imperative element of strategic management that is expected for acquiring a competitive advantage [11]. Strategic innovation should follow three significant steps: deliberation, programming and execution, to then find its new benefit. Numerous researchers have developed a series of theories, definitions, constructs, and procedures [7][12], all directed towards dealing with objectives in order to describe the framework of strategic innovation as a methodology. Previous studies have contributed to distinct strategic innovation operational objects, concepts, definitions, frameworks, paradigms, perspectives, propositions, determinants, and impacts, which have been described for investigating the question of what strategic innovation is [13][14][15][16][17][18]. Many highly cited articles express the importance of strategic innovation from remarkable perspectives. Galambos and Sturchio examined small biotech startups that forced large firms to develop new strategies for innovation in the pharmaceutical industry [19]. Pitt and Clarke proposed a knowledge perspective on the management of strategic innovation and explored the conceptual links between knowledge development and the management of strategic innovation [20]. They also argued that strategic innovation is the purposeful orchestration of organizational knowledge development and application. Kodama presented the aim of implementing strategic innovation, where companies deliberately integrated the above strategies based on event-based pacing practiced by the existing organizational bodies in a Japanese case study [21]. Furthermore, Charitou and Markides disputed that disruptive strategic innovation may not necessarily be superior to the traditional instruments of competing, claiming that rushing to embrace them can be detrimental for established companies when other responses, including ignoring the innovation, may make more sense [22].
Strategic innovation is not a one-shot tournament and continuous innovation in both operations and strategies is the long-term way for an organization to survive, that is, offense is absolutely the best defense. Otherwise, the innovation will be imitated by competitors and then it just become a flash in the pan under long-term observation [11].

2. Organizational Sustainability

Contrary to strategic innovation, organizational sustainability has become an emerging subject of concern in the last decade. Organizational sustainability is productive as the result of a congruent ideology of economic, societal, and ecological concerns that have an influence on human resources management [23]. Paulraj evaluated empirically the relationships between internal resources and capabilities, sustainable supply management, and organizational sustainability. Organizational growth refers to the natural expansion of size and development is the ability to improve by taking advantage of opportunities [24]. Carayannis, Sindakis and Walter provided insights on organizational design and governance, and the role that different stakeholders, predominantly customers, and partners play in the innovation process towards organizational sustainability [25], whereas Lopes et al. considered how organizational sustainability increasingly focuses on how to manage a new knowledge of ideas and practices that can expand a business [26].
A sustainability organization is (1) an organized group of people that intends to advance sustainability and/or (2) those actions of organizing something sustainably. Unlike in many business organizations, organizational sustainability is not limited to implementing sustainability strategies that provide an organization with economic and cultural benefits attained through environmental responsibility. For organizational sustainability, sustainability can also be an end in itself without further justifications. Florea, Cheung and Herndon integrated scholarship on organizational sustainability, human resource practices and values in delineating how four specific values—altruism, empathy, a positive norm of reciprocity, and private self-effacement—support effective human resource practices in organizations. They suggested that ethical and multicultural values are essential for planning and implementing effective management practices and organizational sustainability [27]. Moizer and Tracey constructed a causal-loop diagram that illustrates the relationships between resource allocation and a number of other variables thought to influence the sustainability of social enterprises [28].
In recent years, more abundant studies have attached significance to the comprehensive interdisciplinary nature of organizational sustainability, e.g., a conceptual framework in different cultural settings [29]; an exploration involving themes, functional areas, and the corresponding best practices to purpose a framework supporting the theoretical models [30]; the impacts of Lean Six Sigma over organizational sustainability [31]; the interplay between organizational sustainability, knowledge management, and open innovation [26]; a complex adaptive systems perspective on driving innovation capabilities [32]; a survey on the three dimensions of environmental, social, and economic/or government practices [33][34][35]; an empirical study by an integrated perspective on organizational trust, employee–organization relationships and innovative behavior [36]; and integrated quality and supply chain management business diagnostics for organizational sustainability improvement [37].
The Environment, Society, and Governance are closely related to the necessary costs related to Q (product quality), C (cost), D (transportation), and S (service) in the supply process of an original enterprise. The benefits are to make the most suitable solutions for altruistic purposes, mutual benefit, win–win outcomes and common sustainable development. Sustainability has many considerable sub-issues at the organizational gradation. For example, sustainability intends to translate the perfect harmony between the grace of heaven, earth, and humankind, namely, the process of maintaining an environmental consensus and balance between resource exhaustion, investment evaluation, technological elaboration, and institutional transformation when people meet human needs for future continuation. Sustainability can be an idea, a way of life, a method of improving, or an upgrade of an organizational system.

3. The Connection between Strategic Innovation and Organizational Sustainability

Strategic innovation can be a methodology or strategy deployment, but interdisciplinary consolidation, and multipurpose and multidimensional exploitations are emphasized by organizational sustainability. Nevertheless, the requirement for strategic innovation of an organization denotes that in the process of pursuing long-term survival and sustainable development, an organization needs to accomplish its ambitions and ensure a leading position [11]. Sustainability can also empower an organization to maintain its strengths and continue to gain advantages in already leading its competitive province and for future expansion. Moreover, it will achieve the ability to grow steadily over a long period of time. Partidario and Vergragt addressed a new way of influencing and stimulating technological innovations towards sustainability in a case study that gathered information about its production, environmental aspects, and technological innovations and applications [38]. Govindarajan and Trimble conducted an in-depth review of ten organizations, and they identified what the organizational DNA is for strategy innovation [39]. Through open innovation, companies can leverage knowledge management into an asset that promotes sustainable innovations that influence back on to organizational sustainability [26]. Yang examined the association between a team’s incivility climate and the team members’ perceived support for innovation, and they also discussed practical implications for organizational sustainability [40].
Strategic innovation refers to the process and result of continuous organizational expansion of an objective intent and an organization’s own cognition and behavior in order to meet its demands [41][42][43]. Specifically, strategic innovation is often the activity in an organization that follows the law of development of things for certain purposes and which changes the whole or some parts thereof so that they can be updated and developed. Carayannis, Sindakis and Walter explained how organizational sustainability would be affected, when innovation was performed in particular organizational designs and through the governance of manufacturers in developing countries [25]. Meanwhile, Yang concluded that there was a negative effect from a sentiment of team incivility against innovation for organizational sustainability [39]. Lopes et al. summarized in a case study: knowledge management and open innovation play a key role in effective organizational sustainability [26], while van de Wetering, Mikalef and Helms believed that information technology is a part of innovation capabilities that enhance organizational sustainability through information technology flexibility, partner collaboration, and environmental business factors [31]. In addition, Kilintzis et al. reported on innovation and its effects on the organizational sustainability of a population of small- and medium-sized enterprises with certain organizational characteristics [44].
As mentioned above in detail, the vast majority of the literature implicates innovation in being involved as a part of a strategy that built on the fundamental notion of organizational sustainability. Strategic innovation can be utilized by organizations through the definition and adjustment of their operational scope; the creation and accumulation of core resources, and the construction and strengthening of their corporate networks [45][46]. In addition, as many various categories of strategies are increasingly being applied, organizations are seeking more practical methods to make sense of what innovations they can postulate. This has led first to in-house management identifying better sustainability criteria. Moreover, when armed with the professionals to augment additional innovations, organizations are empowered to evaluate what sustainability innovations they are working towards.

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