Overcoming emerging sustainability challenges in organisations through innovation : a dynamic capabilities perspective

Abstract

The increasing pressure on organisations to transform their traditional business models to business model innovations for sustainability is high on the agenda for executives. The Financial Services industry in South Africa (SA) play a defining role in this transition as organisations often grapple with finding the balance between the drivers and barriers of Sustainable Business Model Innovation (SBMI) from the internal and external environments. The Financial Services industry is a valuable contributor to SA’s GDP growth. This study aimed to gain new insights into the phenomenon of SBMI implementation. By gaining a deeper understanding of SBMI implementation, leaders can source the appropriate tools to mitigate their sustainability challenges and identify enablers in the SBMI journey. The study leveraged a dynamic capabilities perspective to understand how organisations bring innovation into sustainability strategies which lie at the juncture of SBMI implementation and strategy. This study adopted an exploratory, qualitative research design. The data was gathered from 21 semi-structured interviews with sustainability business professionals and experts across South Africa’s Financial Services industry. The study concluded with a conceptual framework to provide a tool for organisations on their SBMI journey. The research outcomes of this study contribute to nascent SBMI literature.