Fostering environmental sustainability through value creation in IOC : technology-innovative firm context

Abstract

Inter-organizational partnerships, where organizations collaborate to leverage and probe technologies and novel solutions to seize market opportunities and create positive environmental impacts, have emerged as a response to the growing demand for sustainability. The need for collaboration to improve sustainability centers around the reality that inter-organizational collaboration unlocks possibilities for more comprehensive and impactful outcomes, as parties each viewing different aspects of a problem, work together to constructively seek solutions that extend beyond their individual, limited perspectives of what is possible.

Research on inter-organizational collaboration (IOC) has primarily concentrated on two key areas: the motivations driving organizations to engage in collaboration, and identifying the key factors for success; improving the outcomes of collaboration per se. As previous research has contributed to furthering knowledge on the external and internal factors that promote successful collaboration per se, there is a need to explore the factors that drive collaboration to foster sustainability. In this regard, although value creation is central to inter-organizational collaboration, authors often provide insufficient detail about what value is created and how it becomes visible through inter-organizational collaboration. This thesis aims to explore how value creation in inter-organizational collaboration can facilitate benefits regarding environmental sustainability, namely in technology-innovative textile fibre and material production firms. The research is conducted as a qualitative multiple-case study with four organizations; the empirical data is gathered through semi-structured interviews from the participant organizations.

The findings of this study showed first that the internal functionality factors enabling the collaboration to create value entail openness, trust, mutual interest, solidarity, commitment to activities, actor bonds, aligned values and mission. Secondly, the findings demonstrated how value creation in IOCs, in the form of four types of value that are created in collaborative relationships; associational, transferred, interactional and synergistic value, generate benefits for the environment in diverse ways. Associational value created benefits for environmental sustainability through visibility of the sustainability issues, increased awareness of the ways to tackle challenges, contributing to consumer behavior, and improving transparency; Transferred value through the production of alternative products and processes with improved environmental features, and development with legislation for better industry practices; Interactional value through collaborative learning, sharing green knowledge, and adaptation, which were recognized to contribute to mitigating negative impacts and developing better actions toward the environment; and Synergistic value through eco-innovation.

This study presents insights on engaging in inter-organizational collaborations for environmental sustainability. By partnering with like-minded organizations that share their values and vision, businesses can pool resources, knowledge and expertise to foster a forward-thinking textile industry.