Sustainable innovation in a low- and medium-tech sector: Evidence from an SME in the footwear industry

Abstract

How does a small firm achieve sustainable innovation in a low- and medium-technology (LMT) sector as a market niche? Based on an exploratory case study, we find that Allbirds, a footwear startup, and its collaborators in the value chain in Korea, achieved sustainable innovation in sustainability branding (the total carbon footprint of footwear) and architectural innovation (a new integral design of the upper portion of footwear). We also find that Allbirds leverages various complementors' resources and capabilities across the value chain. Based on the results, we introduce an interpretive framework that explains a sustainable innovation in an LMT sector, driven by a small firm's efforts at collaboration with external stakeholders, centering on an architectural and radical marketing innovation, specifically, emphasizing the use of intra- and transsectoral knowledge. This study deepens understanding of sustainable innovation in the context of small and medium-size enterprises (SMEs) in an LMT sector.