Study sheds light on sustainable innovation

A recent study from the University of Eastern Finland reveals a significant shift in how sustainable innovation (SI) is understood within business research. The study offers a consolidated and holistic review of determinants of SI in business practices and research areas pertinent for integrating sustainability in business practices.

Through a comprehensive review of 242 scientific articles from the sub-disciplines of organization science, strategic management and entrepreneurship, the study identifies three overarching thematic conceptualizations of SI: transformations, outcomes and systems. The findings are published in the journal Sustainable Development.

“We also reviewed 142 natural science articles related to SI and found that most of them pointed to the need to know more about SI in a business context,” Postdoctoral Researcher Kristiina Leppälä notes.

Transformations examine how businesses change their structures and strategies to sustainable or even circular ones. Outcomes, on the other hand, examine the environmental, social and economic impacts of SI, while systems perspectives examine the broader ecosystems and networks that enable SI.

The researchers further examined these three thematic conceptualizations in an SI framework which consists of 13 sub-categorical dimensions stemming from the SI themes. The framework, in turn, offers a structured approach to the study and implementation of SI, thus achieving both academic as well as practical relevance and applicability.

The new SI multi-dimensional framework brings coherence to a previously fragmented theoretical landscape. Once a vague concept tied mainly to product and process development, SI has emerged as a critical area of study across multiple business disciplines.

This review contributes to the field by offering a comprehensive understanding of SI’s role in the ongoing sustainability transition, highlighting its integration at individual, organizational and systemic levels. The framework supports strategic decision-making in sustainability transitions and aligns with key UN Sustainable Development Goals.