Abstract
Companies can contribute to sustainable development in a dynamic and globalized market, such as today’s, through Sustainability-Oriented Innovation (SOI). However, to do this implies meeting specific requirements and dealing with greater complexity because of the higher level of sophistication of cooperation networks for this kind of innovation. In this context, to meet the requirements demanded by SOI, Foreign Direct Investment (FDI) is considered fundamental. However, it is not known whether their capacity to focus more on heterogeneous knowledge sources, which, thanks to their cooperation networks, are broad and geographically diverse, would have a differential impact on SOIs. Through comparative analysis, this paper attempts to shed light on the possible network differences for companies, with and without FDI, looking to undertake SOI. It focuses on the knowledge framework and geographical scope stemming from cooperation for successfully undertaking sustainable developments. To this end, three networks had to be set up, which include diversity, scope, experience, and frequency of national, European, and global cooperation. The results lend strength to the theory that SOI is favored by European and global cooperation networks if companies have FDI, and by national networks if there is no foreign participation. For this, the role of absorptive capacity is key, understood as a joint analysis of R&D intensity and the skills and education of employees tasked with innovation, and the implementation of new organizational methods. Lastly, it is confirmed that having FDI allows companies to have qualified employees, and better methods and organizational practices in connection with an openness to innovation.
Highlights
In the last decade, the interest of both professionals and academics has focused on knowing how different open innovation partners can improve this Sustainability-Oriented Innovation (SOI)
This paper shows how companies involved in SOI partnerships, both with and without Foreign Direct Investment (FDI), must be aware that for SOI to take place, it is important they sell on external markets, train their employees, and obtain public funding
It contributes to the literature that establishes that companies with FDI are better positioned than their national counterparts when it comes to translating the diversity of alliances into better innovation performance with a high level of absorptive capacity
Summary
The interest of both professionals and academics has focused on knowing how different open innovation partners can improve this Sustainability-Oriented Innovation (SOI) In this sense, SOI reflects the intention of the company to develop new products or services with scope in economic, environmental, and social sustainability [1,2,3,4]. Focuses on understanding how companies integrate a large number of actors in a sustainable context, in order to determine what the external links are within the diversity of options that allow them to undertake SOI [5,6] This diversity means there is a lack of knowledge about how SOI benefits from external cooperation, as these multiple new perspectives of stakeholders are needed to rethink and redesign products, processes, and services that comply with the requirements of sustainable development [2,7]. There is a need to use what the literature on inter-organizational cooperation, alliances, or networks can offer to carry out further research into SOI [6,8,9]
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