Stakeholder engagement in environmental innovation

Abstract

This chapter explains why stakeholder engagement is even more critical for environmental innovation than for traditional innovation, arguing that learning how to successfully engage stakeholders in environmental innovation is one of the most critical levers in transforming our organizations and economy towards environmental, as well as social, sustainability. Five theoretical lenses that that are useful for thinking about stakeholder engagement in innovation are introduced: stakeholder theory, resource-based view, absorptive capacity, institutional logics and dynamic capabilities. The evidence from a systematic review of 88 peer-reviewed articles is synthesized into a framework for stakeholder engagement in environmental innovation, with each element of the framework illustrated with empirical evidence from eight case studies of environmental innovation partnerships. The framework sets out the engagement management, engagement learning and operational capabilities required to engage stakeholders in environmental innovation, as well as the outcomes and benefits of such engagement. Research directions are identified, and guidelines for practices are proposed.