Sustainable Innovation - Driving Factors in Large Firms

Abstract: During recent years, there has been a growing interest in sustainable innovation both in academia and in practice. Our qualitative, multiple case study examines this emerging field in the context of large firms. By doing so, this thesis contributes to the understanding of the concept as well as the underlying factors driving sustainable innovation. Theory highlighted both external and internal factors in firms’ sustainable innovation engagement. The empirical evidence identifies five key factors driving sustainable innovation in large firms; market demand, new business opportunities, interfunctional collaboration, management commitment and corporate culture. Furthermore, it clarifies to what extent each of the factors affects the process of developing sustainable innovation within firms. These factors are found to go together, sometimes collide and enhance one another. This study is built on rich data collected through semi-structured interviews together with secondary sources from four of Sweden's largest and industry leading firms; Atlas Copco, Ericsson, H&M and IKEA. Theoretical and managerial implications are discussed with important insights for both scholars and practitioners.