Embracing stakeholder engagement in sustainability-oriented innovation: Internal capabilities and dynamics of open innovation in the Norwegian minerals industry

Abstract

The transition towards a sustainable minerals industry will rely on pursuing sustainability-oriented innovation (SOI), requiring continuous innovations in extraction and production processes, product offerings and the way the industry deals with its social responsibilities. Considering the breadth of SOI, mineral firms have no choice but to engage with and seek knowledge from multiple key external stakeholders. However, this stakeholder multiplicity poses significant challenges to firms, bearing in mind the diverse knowledge backgrounds and interests of these stakeholders, as well as the internal capabilities required to integrate and apply the externally acquired knowledge. Despite the growing scholarly interest in studying stakeholder engagement in SOI processes, a considerable amount of knowledge in this research field is restricted to specific types of SOI that ignore the comprehensiveness of sustainability. Therefore, the overall aim of this thesis is to answer the following question: “Under which conditions and to what extent can engaging external stakeholders improve a firm’s SOI outputs and financial performance?”. This research question is explored through four sub-research questions in three empirical papers that draw on different theoretical perspectives and methodological approaches. The first and second papers provide insights into the conditions in which stakeholder engagement can be beneficial for SOI, focusing on internal and inter-organizational factors respectively. The third paper then positions SOI itself as a mediating condition that can assist firms to reap the financial benefits from stakeholder engagement practices. As far as the extent of the effect of stakeholder engagement is concerned, the second and third papers establish an empirical link between stakeholder engagement and SOI outputs. Overall, the thesis contributes to the literature and practice by uncovering the “what”, “how”, “why” and “when” of the phenomenon of stakeholder engagement in SOI.