Exploring the role of dynamic capabilities as a core competency on sustainable innovation in the mining industry

Abstract

The aim of this research was to explore how mining capabilities can make use of the dynamic capability theory in their attempts to achieve sustainable innovation. The results of the study were based on 12 semi-structured interviews that were conducted with participants being senior managers, executives and mining consultants. From the interviews, the participants highlighted five key dynamic capabilities mining companies need to have in order to innovate sustainably. These key dynamic capabilities were financial liquidity, experienced and skilled management, flexible workforce, nature of resource mined and stakeholders’ support. To successfully build these dynamic capabilities, five key routines or processes were identified, which are; research and development, foresight, scenario planning, continuous improvement and embracing technology. The key barriers to sustainable innovation in the mining industry were also highlighted, and these were found to be; the literacy level, employers – unions relationships, mining legislation, culture and asset intensiveness nature of the industry. Based on literature study and the results from the interviews, a dynamic capabilities for sustainable innovation framework was developed and presented as a guide that can be used by mining companies in their attempts towards innovating sustainably by making use of dynamic capability theory.