Towards an Innovation Link between Dynamic Capabilities and Sustainability Strategy: Options for Emerging Market Companies

Abstract

Over the last few years, there has been considerable scholarly interest in the strategic management concept of dynamic capabilities. During the same period, sustainability policies and strategies have also become a major focus for many companies. These two areas have resulted in major new innovative opportunities for companies, including those located in emerging markets. However, up to the present time, few studies have attempted to combine the growing scholarly topic of dynamic capabilities with the equally important topic of sustainability strategy in the context of emerging market companies. This paper links these two areas through the theoretical lens of innovation theory. It develops and proposes four main business options for companies, particularly those from emerging markets, from an innovation perspective. The paper contributes new knowledge by identifying and expanding on the innovation strategy links between dynamic capabilities and sustainability strategy. It offers theoretical insights into the nature of that connection in the context of companies from both developed and developing economies.

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