Driving Sustainable Innovation in New Ventures: A Study Based on the fsQCA Approach

Abstract

With the external environment becoming increasingly complex and changeable, how we can effectively enhance the innovation of companies in sustainability has become the focus of research. For startups, due to their lack of resources and poor independent innovation capabilities, they need to search for external knowledge from outside to meet their own needs. Therefore, obtaining external knowledge sources and adopting appropriate methods for knowledge search is the key to affecting innovation in sustainability. Moreover, enterprise capability is also an important factor restricting sustainable innovation. In this paper, we construct an integrated framework of resources and capabilities based on theoretical learning and practice between 2018 and 2021, containing technical knowledge, market knowledge, a formal search, an informal search, organizational learning, and strategic flexibility. Taking 450 new ventures in China as the research sample, we adopt the fsQCA method and derive the path driving the sustainable innovation of new ventures. The results show that resources and enterprise capabilities combine to influence sustainable innovation, and there are two configuration paths driving the sustainable innovation of new ventures. In the first pathway, a technical knowledge search, a market knowledge search, organizational learning and strategic flexibility are the core conditions; in the second pathway, a formal search, an informal search, organizational learning, and strategic flexibility are the core conditions.