Innovation capabilities for sustainability: a comparison between Green and Gray companies

Abstract

This paper aims to identify and compare the arrangements of innovation capabilities and their correlation with the socio-environmental responsibility of two groups: companies with less socio-environmental concern (Group Gray) and companies with greater socio-environmental concern (Group Green). Descriptive and quantitative research with 1,322 Brazilian manufacturing companies was conducted. We analyzed (1) the actual arrangement of capabilities and (2) the ideal arrangement of capabilities with the greatest impact on innovation. Results suggest that there is a difference in the arrangement of capabilities between the two groups. Also, there is a difference between the capabilities that effectively receive the companies' attention and the capabilities that should be valued and developed. Green companies must focus their efforts on Transaction capability, followed respectively by Management, Development and Operation capabilities. Gray companies must focus on Development capability, followed by Management, Transaction and Operation capabilities. By identifying the ideal capability arrangement, this research provides important information that can guide managers in planning internal strategies for investments, prioritizing management efforts and rearranging capabilities to boost innovation for sustainability.