Abstract
Studies that integrate sustainable value with capabilities and product design are scant. To bridge this gap, this study adopts an exploratory case study method to clarify the process of sustainable value creation in product design from the capability perspective. Drawing from present literature and case practices, we suggest a new sustainable value-creation system composed of three capabilities: value chain operations, internal integration and external integration. The sustainable value flows and relationships between them are distilled explicitly. Taking it toward theorizing, this paper complements capability-oriented operations strategies by disclosing the dominant role of value chain operations, the fundamental role of integration capability, and reciprocity between internal integration and external integration. Our verified framework provides a holistic and systemic perspective to companies who are willing to integrate sustainability in product design and contextualize the firm-level sustainable value streams. Organizations should periodically reassess this system to create sustainable value.
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