Dynamic capabilities for sustainable change in the food processing industry: A multilevel perspective

Abstract

Businesses are increasingly exposed to dynamic market conditions due to changing legislation, societal values, and consumer preferences. While society and stakeholders hold companies accountable for respecting principles of sustainable development in their business conduct, it is essential to understand how individual, organizational, and supply chain capabilities for implementing sustainability in corporate structures and operational processes have evolved over the years. By applying well-accepted, theoretical frameworks regarding practices and dynamic capabilities for sustainability, the present study analyzed food processing companies in Germany using an exploratory research design. Data were collected through interviews with key informants and audit reports from sustainability standards in place at these companies in a period of seven years. While we found recursive relationships between dynamic capabilities and sustainability practices, our findings uncovered how dynamic capabilities are built and diffused within and across different levels and during different phases of the sustainability integration process. Thereby, the study investigated practices necessary to facilitate dynamic capabilities’ building such as cross-functional knowledge sharing practices for re-configuration capabilities. We contribute to the understanding of how practices are modified and reconfigured over time and on multiple levels to open pathways of transition toward sustainability. Managerial implications and avenues of future research are provided for decision-makers in the food processing industry accordingly.