Dynamic capabilities and organizational routines for managing innovation towards sustainability

Previous studies demonstrate the role of companies' dynamic capabilities and accompanying organizational routines in effectuating their resources and competencies for innovating towards sustainability. However, it remains a question how the dynamic capabilities (i.e., sensing, seizing, and reconfiguring) and their underlying organizational routines have an effect on innovation towards a greater degree of sustainability. This study investigates this research question and finds a structure of dynamic capabilities and related organizational routines positively influencing companies' innovation towards a greater degree of sustainability as depicted in the figure underneath. The circles in the center of the figure show how reconfiguring directly, and indirectly, i.e. mediated by sensing and seizing, positively influences companies' sustainable innovation activities. The circles in the periphery of the figure represent the underlying organizational routines of these dynamic capabilities, and the control variables while measuring companies' innovation towards a greater degree of sustainability. The thickness and accompanying values of the arrows represent the measured weight of the dynamic capabilities, organizational routines and, control variables.187