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CM V83 - Business strategies for sustainable innovation*"CLOSED FOR FURTHER ENROLMENT"

Faculty
Christian Erik Kampmann (associate professor), Guest lecturers
Course Coordinator
Christian Erik Kampmann
Prerequisite/progression of the course
The course is open to students in the CBS cand.merc./M.Sc. program or equivalent. Non-CBS student participation is subject to approval by the course. Knowledge of corporate strategy and innovation is an advantage but not strictly required beyond the B.Sc. business degree level.
Course content, structure and teaching
This course is about developing corporate and business innovation strategies, i.e., the successful development and commercialization, of sustainable technologies at the strategic level. The need to transform our economy towards sustainable production is a defining theme of our age. Most experts agree that the demands for sustainability will dramatically alter competitive positions in existing industries and create new commercial opportunities and entirely new markets and industries. For instance, we will see major changes in energy systems, supply lines, materials processing and logistics, leading to new “industrial eco-systems” and business models. Accordingly, managerial thinking must move from the limited perspective of “Does it pay to be green” towards recognizing the strategic threats, challenges and opportunities in this transformation process – or ignore it at their peril. This raises questions for managers, such as: What particular demands are raised by the drive towards sustainability for my industry or my company? How do sustainable innovations/strategies differ from other types of innovations/strategies? What are possible frameworks, principles, and models that can guide sustainable innovation and strategy making?
We approach the issue in three different ways: 1) By characterizing and categorizing sustainable innovations and comparing them to other types of innovations; 2) by applying theories, concepts, models, and methods from the general innovation strategy literature to sustainable innovation cases; and 3) by presenting new theories specifically designed to address sustainability as a corporate strategic principle. The first set of themes includes definitions of sustainability, distinctions between autonomous and systemic sustainability, the role of government regulation, public attitudes and the “green consumer”, as well as empirical studies of whether or when it “pays to be green”. The second theme is based on theories such as industrial organization, the resource-based view of the firm, transaction cost economics, platform strategy, first- and late-mover advantages, open innovation, and user-driven innovation, all applied to sustainable innovation. The third theme presents frameworks specifically addressing sustainable innovation such as the “natural resource based view”, “natural capitalism”, “bottom-of-the-pyramid”, systems approaches, environmental management, and alternative classifications of archetypical “green” strategies. Having moved through these three perspectives, we will discuss the current, rapidly moving frontier of thinking in sustainable strategy and where it is moving.
The course will combine lectures, in-class discussions, and project work. The first part of the course is primarily focused on theoretical frameworks while the second part focuses on applications and includes guest speakers from companies involved in sustainable business innovations. Active class participation is expected of you: it will greatly enhance your own learning as well of that of your fellow students. The course includes a mini project focused on a particular sustainable innovation case, either a specific company, an industry, or a technology, where you will apply the frameworks learned.
The course's development of personal competences
No special skills developed beyond normal study skills such as research, interviewing, writing, class dialogue, and group work.
Learning Objectives
Upon completing the course, the student should be able to
  • Describe, classify and critically discuss the notion of sustainable innovation strategy in general, including empirical evidence of when it “pays to be green”
  • Describe, classify and critically discuss the course’s concepts, theories, methods, and models (henceforth “theories” for short) of corporate strategy and innovation strategy
  • Apply these theories to simplified examples on demand and reflect upon the quality and applicability of theories to the issue at hand
  • Critically reflect upon the applicability of the different theories in general
Apply the theories to a detailed real-world greentech innovation case in the mini-project by:
  • Presenting relevant facts and context of the case and identifying the key problems
  • Justifying the choice of theories and relevant data
  • Using the theories to analyze the chosen problem
  • Providing tentative managerial implications, and
  • Critically reflecting upon the theories used and provide suggestions for extending or combining theories to better fit the problem at hand.
Type of examination, exam aids and assessment
Oral exam based on mini-project.
Recommended literature
Literature will be based on electronic downloads rather than a printed compendium (to save paper and retain flexibility).
  • Ambec, S; Lanoie, P (2008): Does It Pay to Be Green? A Systematic Overview Academy of Management Perspectives, 22 (4): 45-62. (18 p).(18 p.)
  • Braungart, M; McDonough, W; Bollinger A, 2007, "Cradle-to-cradle design: creating healthy emissions – a strategy for eco-effective product and system design." Journal of Cleaner Production 15: 1337-1348.(12 p.)
  • Chesbrough, H.W. and M.M Appleyard (2007): Open Innovation and Strategy, California Management Review, 50: 57-76. (21 p.)(21 p.)
  • Christensen, J.F. (2009) "Towards a Framework of Open Business Dynamics", Working Paper, CBs-INO(37 p.)
  • Schoemaker, PH (1995) Scenario planning: a tool for strategic thinking. Paul J.H. Schoemaker, Sloan Management Review 36(2) (Winter 1995): 25-40(16 p.)
  • Ehrenfeld, John R (2005) "The Roots of Sustainability." MIT Sloan Management Review 46, no. 2: 23-25 (3 p.)(3 p.)
  • Gawer, Annabelle, and Michael A. Cusumano. 2008. "How Companies Become Platform Leaders. (cover story)." MIT Sloan Management Review 49, no. 2: 28-35.(8 p.)
  • Hopkins Michael S. (2009) "Sustainability, but for Managers." MIT Sloan Management Review 50, no. 3: 11-15(5 p.)
  • Ignatius, Adi (2009) "Why Green Is Growing (When Not Much Else Is)." Harvard Business Review 87, no. 9: 10-10(1 p.)
  • Lash, Jonathan, and Fred Wellington. 2007. "COMPETITIVE ADVANTAGE ON A WARMING PLANET." Harvard Business Review 85, no. 3: 94-102. (9 p.)
  • MIT/BCG (2009) "The Business of Sustainability: Findings and Insights from the First Annual Business of Sustainability Survey and the Global Thought Leaders’ Research Project", MIT Sloan Management Review special report.( p.)
  • Nidumolu, Ram, C. K. Prahalad, and M. R. Rangaswami (2009) "WHY SUSTAINABILITY IS NOW THE KEY DRIVER OF INNOVATION. (cover story)." Harvard Business Review 87, no. 9: 56-64(9 p.)
  • Orsato, R.J. (2006): Competitive Environmental Strategies: When Does it Pay to Be Green? California Management Review, 48 (2): 127-143.(17 p.)
  • Porter M.E. and M.R. Kramer (2006): Strategy & Society - The Link Between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review, December: 78-92.(15 p.)
  • Reinhardt, F.L. (1999): Bringing the Environment Down to Earth, Harvard Business Review, July-August: 149-157. (8 p.)(8 p.)
  • Simanis, E., and S. Hart. (2009): "Innovation From The Inside Out." MIT Sloan Management Review 50, no. 4: 77-86.(10 p.)

Last updated by The Electives Office 20/10/2010