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Compliance-Innovation Quality Loop
Source publication
The areas of Governance, Risk and Compliance (GRC) and innovation are under-explored in research generally, and specifically in sustainability-oriented research. In this paper we propose a practice-based concept of Compliance-Innovation and set out its significance for sustainability. Development of the concept is based on a literature review and e...
Citations
... Sustainability has to be integrated into the whole organization. Compliance is needed to obtain reduction in resource usage and innovations are needed to do things in a new way (Doyle et al., 2019). ...
Purpose
This study aims to describe how large corporations, facing digitalization and sustainability, can use established models and theories to find appropriate organizations design for these “new” challenges.
Design/methodology/approach
The information processing perspective presented by Jay Galbraith (Galbraith, 1974) can be an appropriate platform to analyze organizational requirements, also in new complex and uncertain situation. The authors use the Miles and Snow (1978) typology to explain how traditional design can be appropriate in the new world of sustainability and digitalization.
Findings
With the new types of business models, the design should have a holistic view. The design should be split into three levels: the corporation as a whole, the large business units and the operating units. Each of these units can follow traditional organizational forms with an internal market-based coordination combined with digital platform systems.
Originality/value
Both large and small corporations now face big challenges related to adapting their business models, managerial processes and organizational structures for digitalization and sustainability. Digitalization and sustainability combine the various pieces of the corporation into a tightly coupled network with a real time coordination of activities making it difficult to obtain local adjustments without disturbing the whole. At the same time, there is a strong need for both being locally agile with a focus on effectiveness and at the same time being very efficient. The literature calls for new organizational forms to handle this situation. The authors show that “old” designs properly coordinated can be an appropriate design as well.
... Knowledge creation generated from diverse knowledge has implications for making HR a strategic asset in achieving sustainable competitive advantage (Doyle, McGovern, McCarthy, & Perez-Alaniz, 2019). Knowledge creation has been found to be an enabler in achieving sustainable competitive advantage (Quartey, 2019;Sulistiyani, Udin, & Rahardja, 2018). ...
... Innovativeness is measured by indicators of assimilation, differentiation, inversion, and integration (Gallouj, 2015). Albert (2019) states that innovativeness and sustainable competitive advantage are closely related; innovation can improve sustainable competitive advantage (Litungkangas et al., 2019), and that the strength of a company's innovation is a factor that determines its ability to design strategies and sustainable competitive advantage (Doyle et al., 2019). Thus, H4: Innovativeness influences sustainable competitive advantage ...
... At last, innovativeness had a positive influence on sustainable competitive advantage. It is consistent with research conducted by Doyle et al. (2019) that the strength of a company's innovation is a factor that determines its ability to design strategies and sustainable competitive advantage. This research produced positive effects because the dimension of innovativeness could create something new, implement new products and processes, respond to changes, and want to meet new challenges. ...
This study aims to analyze the relationships between knowledge diversity, knowledge creation, innovativeness, and sustainable competitive advantage. The respondents of this study were 200 employees from SMEs in Central Java-Indonesia. Data were obtained using the distribution of questionnaires and analyzed by applying structural equation modeling (SEM) with AMOS 20 software. The results revealed that knowledge diversity and knowledge creation had a relation with innovativeness and sustainable competitive advantage.
... The effect of personal use of product (PR1) Indirect effects of product (PR2) Compliance mechanism of products and policies (PR3) Product research and development (PR4) Product complaint mechanism (PR5) [65][66][67] ...
... The effect of personal use of product (PR1) Indirect effects of product (PR2) Compliance mechanism of products and policies (PR3) Product research and development (PR4) Product complaint mechanism (PR5) [65][66][67] Transparency and Communication (TC) Societal commitments and welfare (TC1) Understanding commitments and alignment (TC2) Effective and strategic communication to stakeholders (TC3) Transparent disclosure of sustainability reports (TC4) Business ethics and corporate citizenship (TC5) [68][69][70] Economics (ECO) Development and impact of infrastructure investments (ECO1) CSR and sustainability activities expenditure (ECO2) Deliver to effective economic and financial strategy (ECO3) Risks for assessing economic/financial performances (ECO4) Declare economic/financial statements for stakeholders (ECO5) Financial regulatory and compliance (ECO5) [71][72][73][74] Environmental (ENV) ...
Corporate sustainability is considered a fundamental paradigm and solution in creating a prosperous future for organizations. However, social sustainability issues and pandemic problems from COVID-19 have affected corporations and interrupted plans for sustainable development. To date, corporate sustainability frameworks have taken a relatively narrow view of this paradigm. This study highlights serious challenges to corporate sustainability while providing a framework in an attempt to enable more sustainable business practices. To fill the gap in the literature, we have developed a framework to organize and prioritize important sustainability indicators. The first phase of the study involves the classification of 45 sub-criteria of corporate sustainability under nine main categories by using a literature review and novel Fuzzy Delphi method. The resulting categories are Corporate Governance, Product Responsibility, Transparency and Communication, Economic, Environmental, Social, Natural Environment & Climate Vulnerability, Energy Consumption along with Energy Saving, and includes Pandemic COVID-19 as a new aspect of social sustainability. Next, we applied Fuzzy Analytical Hierarchical Process (FAHP) to help determine the weights and prioritizing the criteria and sub-criteria. The results revealed that the Pandemic, along with the Natural Environment & Climate Vulnerability, ranked higher among the main criteria category. Whereas, emergency response planning, social distances, modification of working hours, and just in time delivery are the most influencing sub-attributes among the 45 sub-barriers of different categories. Contributions of this study include new insights regarding corporate sustainability criteria and subcriteria, application of novel methods, and integrated framework for dimensions of corporate sustainability. This study is among the first of its kind to consider the COVID-19 pandemic as an essential category and social sustainability attribute of corporate sustainable business practices. Outcomes of this study can help assist scholars, corporations, and decision-makers in understanding sustainable development initiatives while simultaneously improving social sustainability practices.
[Citation: Ikram, M., Zhang, Q., Sroufe, R., & Ferasso, M. (2020). The social dimensions of corporate sustainability: an integrative framework including COVID-19 insights. Sustainability, 12(20), 8747.]
... Corporations, supply chains, communities, and nations can achieve sustainability through innovation (Silvestre and Ţ îrc a, 2019). Innovation is the implementation of new or improved products, processes, marketing methods, or organizational methods in business practices or supplier selection (Rauter et al., 2019;Doyle et al., 2019). Social issues such as poverty, social exclusion, corruption, human rights, safety, and equity are serious challenges that negatively affect organizational supply chains and prevent firms from achieving sustainable development (Silvestre and Ţ îrc a, 2019). ...
In today’s competitive business environment, corporations attempt to achieve sustainability through innovation. Innovation is considered by researchers and scholars to be a key driver for achieving sustainability. One of the key parts in any sustainable supply chains is sustainable supplier evaluation and selection. However, few sustainable supply chain management (SSCM) studies have focused on sustainable supplier evaluation and selection, particularly in the context of sustainable innovation management. Thus, supplier evaluation and selection studies that consider overall sustainability (social, environmental, and economic) innovation criteria are nearly non-existent. To deal with this issue, this paper proposes a decision framework to assess sustainable innovative suppliers. A combination of best worst method (BWM) and modified Preference Ranking Organization Method for Enrichment of Evaluations (PROMETHEE) is employed as an integrated model in the analysis. The BWM is initially applied to identify the sustainable innovation criteria weights, and then the modified PROMETHEE is used to analyze the suppliers’ performance. A manufacturing case example is employed to verify the utility and applicability of the proposed methodology. This paper can assist industrial managers, researchers, and decision-makers in understanding and focusing on sustainable innovation, particularly when selecting suppliers, and enhancing their supply chains’ sustainability to make progress toward sustainable development.
The purpose of this research was to study the factors influencing the good corporate governance of the listed companies on the stock exchange of Thailand. This research was a mixed-methodology research with 500 respondents including directors, executives, and inspectors who were responsible for the good corporate governance of the listed companies on the stock exchange of Thailand. The second order confirmatory factors were analyzed through IBM SPSS AMOS. Four factors influencing the good corporate governance of the listed companies on the stock exchange of Thailand were found through the qualitative research with in-depth interview. The result of hypothesis test revealed that the four factors positively influenced the good corporate governance of the listed companies at statistical significance level of 0.01. The sustainable development influenced the good corporate governance of the listed companies most, the corporate social responsibility, risk management, and Internal control system, respectively. The results of second order confirmatory factor analysis found that it was in accordance with the empirical data. The Chi-square minimum probability (CMIN/P) was of 0.108, the Chi-square minimum discrepancy per degree of freedom (CMIN/DF) was of 1.137, the goodness of fit index (GFI) was of 0.964, and the root mean square error of approximation (RMSEA) was of 0.017.
RESUMO: Objetivo do estudo: Este artigo
teve por objetivo compreender as razões da
limitação no usufruto dos incentivos fiscais por
empresas que inovam, por meio da lei do bem,
apontando possíveis alternativas para renúncia
fiscal. Metodologia: A análise documental legal
e para-legal e, também, a investigação à luz de
entrevistas realizadas levando em consideração
as instituições envolvidas no processo de
assessoramento, avaliação, aprovação e auditoria
de projetos de P&D para concessão de benefícios
via Lei do Bem, e beneficiário dos incentivos
fiscais.
A considerable literature has grown up around the theme of the impact of knowledge spillover on the firm’s innovation performance. Nevertheless, few literatures draw on any research into the impact of transnational knowledge spillover on innovation quality, especially from conscious and unconscious perspectives. What’s more, it has been proven that absorptive capacity plays a crucial role on innovation quality, while the relationship between knowledge spillover and absorptive capacity and its impact on innovation quality have yet to be identified. This study therefore defines the trans-national knowledge spillover and distinguishes it from involuntary to voluntary, analyzes their impact on the innovation quality of high-tech industries in host countries, and builds a theoretical model that involves absorptive capacity as the moderating variable. Meanwhile, this study collects data on China’s high-tech manufacturing industries from 2010-2017 to conduct an empirical analysis and the main results were described as following: with an increase in unconscious transnational knowledge spillover, the innovation quality of high-tech manufacturing industries firstly decreases and then increases. Conversely, with an increase in conscious transnational knowledge spillover, the innovation quality of high-tech manufacturing industries firstly increases and then decreases. Impressively, absorptive capacity has a significant positive moderating effect on the relationship between transnational knowledge spillover and the innovation quality of high-tech industries in host countries.
