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Values-Based Innovation Management – Innovating by What We Care About
Abstract
Every human and every company holds values, but these values remain widely untapped as sources of and drivers for innovation. This book takes a valuesbased view on innovation and its management. It demonstrates the potential of values to integrate diverse stakeholders into innovation processes, to direct collaborative efforts, and to generate innovations that matter – innovations that cater to what we really care about. Historical and current case studies demonstrate how innovation in processes, products, services, business models, and even in whole organisations and networks may be driven and guided by notions of the desirable. Sustainability-orientation and social responsibility, but also values of privacy, safety, equity, or tolerance, qualify as relevant drivers and guidance for innovation within and across organisations. By reframing future scenarios, ethnographic research, and business modelling techniques, powerful methods are described to realise ideals by the means of business.
... The debate on how cultural and values-driven transformations can facilitate SOI is not yet well developed [6], and there is little understanding on the normative approaches that can be consistently integrated throughout this process. The lack of consolidated knowledge as well as of practical experiences prevent the diffusion of good practices [7,8], so far that it is claimed that SOI still relies on trial-and-error attempts [9]. ...
... It follows that values are persistent and should not be confused with interests. Interests in fact can be mediated in exchange for something, while values resist simple negotiation since they define 'who we are' [6]. ...
... The previous literature agrees that sustainability-oriented innovation (SOI) originates from radical changes to the corporate culture [2,3]. Unfortunately, there are a lack of models to guide and facilitate these transformations [6]. To fill this gap, this paper addresses two research questions, namely (RQ1) 'How can the culture for SOI be created and fostered?' and (RQ2) 'How can gamification be used to develop SOI?' The paper presents a novel approach that combines concepts from gamification and the SOI literature. ...
This research proposes a gamified approach to creating a culture for sustainable-oriented innovation. Specifically, we use action research to explore the mechanisms through which business decision-makers (such as entrepreneurs, executives and managers) reflect on their practices and obstacles to innovation, and then we use gamification to stimulate the involvement and creativity of managers. The main contribution of this paper is the design of a one-day gamified workshop in which participants collaborate first to identify common values and then to drive the co-creation of sustainable innovations. The workshop has been applied with managers of a real company to evaluate its playability and to validate its effectiveness in creating a culture for sustainable innovation.
... Attending to stakeholder values in innovation-related activities, it addresses drivers and barriers across different management dimensions, going beyond the traditional focus on process, product and service innovations. Breuer and Lüdeke-Freund's (2017) values-based innovation management framework builds on the integrated management framework developed by Bleicher (2011). It distinguishes between: ...
... Furthermore, the framework emphasises that an organisation's effectiveness depends on the degree of its meta-alignment with changing stakeholder values external to the organisation, vertical alignment across its normative, strategic, and operational levels of management, and horizontal alignment across its structures, activities and behaviours. Breuer and Lüdeke-Freund (2017) propose that the management (i.e., integration) of values on each of the three management dimensions contribute to corresponding forms of values-based innovation ( Figure 1): ...
... To accommodate the expectations of different subcultures, formats that facilitate innovation on the normative level benefit from co-development approaches that involve a wide range of employees as well as lead users from the workforce. Moreover, such co-development approaches can be combined with gamification formats that support bottom-up (re-)definitions of organisational values by collecting contributions from individual members and even newcomers to the organisation [e.g., for crowdsourcing of values as in the case of IBM's ValuesJam, see Breuer and Lüdeke-Freund (2017)]. On the strategic level, formats that facilitate business model innovation or strategic renewal should be aligned with the scope of the company's strategic agenda. ...
... Of particular importance is the third feature of the toolkit: the value-based approach to the development of business models. Here the toolkit supports the broader approach of values-based innovation management (Breuer and Lüdeke-Freund 2017a), which theoretically and empirically reveals the issues people really care about as a widely untapped source of ideas, and a reliable guideline for decisions throughout innovation projects. Accordingly the clarification of shared values and visions with the project team creates the common starting and reference 402 H. Breuer and F. Lüdeke-Freund point for the development of new business models. ...
... The maturity model is typically used at the beginning of a business modelling workshop to clarify a company's positioning and future perspective. Once the desired future maturity level for a business modelling project has been defined, examples of successful companies can be used as reference points [a large number of case studies, e.g., IBM or carpet manufacturer Interface, can be found in Breuer and Lüdeke-Freund (2017a)]. ...
... Our findings suggest that the values upheld by these businesses influence their innovation practices, fostering innovative behaviours and actions within these businesses (Eddleston et al., 2019). Furthermore, we contribute to developing values-based innovation within organisations, elevating values from the periphery of business activities to the core of value creation and innovation (Breuer and Lüdeke-Freund, 2017). We contend that values-based innovation necessitates integrating values as the foundation for innovation practices rather than pursuing innovation in any direction solely to generate new value for family businesses. ...
Values exert a significant influence on guiding strategic decisions and behaviours, including the innovation practices of family businesses. Innovation stands as a pivotal driver for entrepreneurship, business development, and economic expansion, with its continuous pursuit deemed essential for the success of family enterprises. Despite this importance, limited research has focused on the intersectionality of values and innovation within indigenous African family businesses. Through the examination of seven indigenous Black South African family businesses as case studies, our research uncovers the crucial role that the values held play in supporting innovation practices within these businesses. These values actively shape the innovation practices of family businesses by fostering a culture of creativity. By emphasising the centrality of values in innovation endeavours, our study significantly contributes to advancing values-based innovation within family businesses, elevating values from peripheral aspects of business operations to fundamental drivers of value creation and innovation.
... Examples of these tools include the Sustainability Innovation Pack (Breuer and Lüdeke-Freund, 2016), the Strong Sustainable Business Models (Upward and Jones, 2016), the Sustainable Value Analysis Tool (Yang et al., 2017), the Triple Layered Business Model Canvas (Joyce and Paquin, 2016), the Ecocanvas (Daou et al., 2020), the Lean Business Model Canvas (Maurya, 2010in Ching, 2014, and the SBM canvas (Bocken et al., 2018). Fewer tools, in comparison, come from a SE perspective. ...
The need for informed and well-structured business models underpinning social ventures designed to address the societal challenges of our times is great. This chapter begins by defining sustainability and highlighting its growing significance. Sustainability is recognized as a shared objective among diverse organizations striving to create a positive societal impact. Continuing, a focus on the concept of a business model and its recent developments is reviewed and asserts that social ventures and commercial enterprises have mutually influenced the development of each other’s business models. Additionally, the evolution, research, and development of business model theory through to practice, the components that underpin them, and their observed typologies and archetypes will be discussed in context of social ventures. This chapter identifies social ventures (or equally, social enterprises) as organizations that prioritize social over economic goals while drawing a critical share of their income from engaging in markets. The conclusion offers illustrative examples of business model categorizations and archetypes specifically within the realm of social ventures.
... De la misma forma, las partes interesadas, como los clientes, las organizaciones no gubernamentales o los medios de comunicación, que exigen que las empresas integren consideraciones de sostenibilidad en su actividad principal, pueden ser otra importante faceta motivacional (Amankwah et al., 2019). Y a nivel individual, valores personales como el altruismo, el universalismo o la benevolencia pueden impulsar el emprendimiento sostenible (Breuer et al., 2017a(Breuer et al., , 2017b. Por consiguiente, el espíritu empresarial sostenible puede interpretarse como algo centrado en la preservación de la naturaleza, el sustento de la vida y la comunidad en la búsqueda de oportunidades percibidas para crear futuros productos, procesos y servicios, en los que la búsqueda de oportunidades genera beneficios que, en un sentido amplio, incluyen beneficios económicos y no económicos para las personas, la economía y la sociedad (Hoogendoorn et al., 2019;Stawicka, 2021). ...
Actualmente, están incrementando los problemas como la degradación ambiental, la brecha de riqueza y el acceso desigual a oportunidades y recursos. Estas preocupaciones han aumentado la necesidad de un espíritu empresarial sostenible, definido como prácticas comerciales sostenibles. El espíritu empresarial es central en la transición hacia un futuro más sostenible, mientras que la alineación de los objetivos sociales, económicos, ecológicos y los empresarios sostenibles juegan un papel importante. Esta revisión sistemática de la literatura analiza el campo del emprendimiento sostenible y el alcance de la integración holística en el ámbito empresarial global, por lo tanto, llena un vacío en la literatura existente. Su objetivo es analizar la profundidad de la literatura existente sobre el emprendimiento sostenible, sus definiciones y sus aplicaciones en las prácticas empresariales. El análisis se basa en una búsqueda bibliográfica en la base de datos Scopus, Scielo, Redalyc, Google Scholar, Science Direct, Dialnet y DOAJ, en torno a la palabra clave “emprendimiento sostenible”. Se concluye que los niveles deseados de sostenibilidad requieren colaboraciones entre todas las partes interesadas, mientras que la transición hacia modelos de negocio orientados a servicios ha contribuido al crecimiento del espíritu empresarial sostenible. Sin embargo, las estructuras institucionales existentes favorecen los negocios y sistemas insostenibles actuales sobre los sostenibles más nuevos, exigiendo que los ecoemprendedores inicien cambios institucionales.
... Business model innovation is the prime technique to achieve unique strategic positions and competitive advantages [6]. Sustainable business models provide the platform for radical innovation and foster strong sustainability business cases. ...
Mining is and will be inevitable in spite of the increasing implementation of circular strategies. The energy transition and population growth will boost the demand for critical raw materials. It is the opportunity for miners to reinvent their business models. Generating attractive new business cases with sustainability-oriented innovations meets investor and stakeholder expectations from the beginning. This contribution guides managers on their pathway towards sustainable success. Contextual sustainable business model patterns will be presented that can be adjusted individually, regardless of actor's size. It will also point out, how sustainable value creation can be measured on business model level.
Purpose
This research paper explores how grassroots innovation initiatives address and resolve the challenges of translating broad and inviting values such as sustainability, inclusiveness and aesthetics into practical and actionable structures. This study examines the tensions and difficulties projects face in operationalizing these values, revealing the gap between idealistic goals and real-world implementation. Moreover, this paper analyzes how role expectations and the concept of invitation ambiguity affect top down and bottom up approaches, offering insights for improving mechanisms to support grassroots innovations.
Design/methodology/approach
This study uses an exploratory qualitative methodology with an embedded case study design, focusing on the New European Bauhaus (NEB) and its award-winning projects. Data were collected through online self-assessment surveys, secondary data analysis, and semi-structured interviews with project owners and NEB Unit representatives.
Findings
The findings reveal significant challenges in translating broad and inviting values (sustainability, inclusion and aesthetics) into actionable outcomes for grassroots projects. Key issues include the need for clearer role definitions, tailored support, and adaptability. Conflicts between those values and a mismatch between expectations about stakeholders’ contributions highlight the need for designing more flexible and robust frameworks and robust frameworks.
Originality/value
This research explores the effects of invitational ambiguity within grassroots innovation, revealing how broad values ‐ like sustainability, inclusion and aesthetics ‐ are operationalized in real-world settings. By applying collective action theoretical frameworks to the unique case study of NEB projects, this study provides fresh insights into the dynamics between top-down European policies and bottom-up grassroots practices.
European companies have widely adopted sustainability goals as part of their strategy and normative guidelines but struggle to facilitate organisation-wide cultural transformation towards more sustainable development. Despite the rapid development of theoretical concepts and methods for values-based and sustainability-oriented innovation (SOI), we still do not understand the discrepancies between sustainability-oriented values and strategies on the one hand and their insufficient translation into innovation-related practices on the other. In order to advance our understanding of the cultural tensions and values-action gaps that constrain SOI at the organisational level and to derive corresponding measures for building values-based innovation cultures, we conducted ethnographic research at a leading technical inspection company in Germany. The resulting insights reveal tensions and gaps between espoused values of corporate sustainability and everyday practices with regard to innovation culture, vertical and horizontal integration, external interfaces, practices and methods and personal alignment. Their discussion enriches our theoretical understanding of values-based and sustainable innovation practices and identifies areas and entry points for managerial intervention to promote a sustainable innovation culture.
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