Opportunistic behaviors are considered ethically and strategically troublesome since they disrupt otherwise mutually beneficial relationships. Previous literature has shown that firms attempt to protect their investments from opportunism by generating a large amount of patented marginal innovations in domains central to their industry. However, this approach may generate some ethical dilemmas by preventing firms and societies from more radical, collaborative, and much-needed environmental progress. We extend the environmental innovation literature using strategic and ethical lenses to analyze the potential of an (...) alternative, divergent way to provide financial opportunities for a focal firm without aiming to prevent innovative opportunities for competitors. Our longitudinal analysis of 6768 environmental patents from 59 large companies worldwide in the electrical components and equipment industry shows that high levels of innovation intensity, environmental scope, bargaining power, and environmental expertise increase the incidence of patented environmental innovations related to domains in which industry competitors are less focused (i.e., technological divergence). We also show a positive relationship between this divergence and market-based firm performance. Our results suggest that pursuing innovative divergence to avoid opportunism may make ethical and market sense and we also identify the organizational factors that can support these efforts. (shrink)

This paper explores the role of learning in organizational responses to sustainability. Finding meaningful solutions to sustainability challenges requires companies and other actors to broaden their thinking, go beyond organizational boundaries and engage more with their stakeholders. However, broadening organizational perspective and collaborating with diverse stakeholders involves inherent political and process-related tensions. Learning has been identified as a key organizing process for overcoming the challenges that arise through collaborative action for sustainability. In order to understand the role of learning in (...) organizational responses to sustainability, we conduct a cross-disciplinary systematic review of the literature on learning for sustainability and incorporate perspectives from diverse disciplines including business, management, environmental science, sociology, policy, urban planning, and development. The review explores how different disciplines conceptualize and operationalize learning for sustainability and identifies the common themes and challenges. Our findings highlight the different ways that power relations influence learning and decision-making processes, and how entrenched traditional value structures and ‘reflexive complicity’ limit practitioners and researchers alike in finding meaningful sustainability solutions. We conclude that shifting how we motivate business and management research on learning for sustainability, in a way that prioritizes sustainability outcomes over firm performance, could bring us a step closer to more meaningful responses to sustainability. Similarly, breaking patterns of ‘reflexive complicity’ by key actors in business could assist in shifting toward more radical and long-term responses to sustainability in practice. (shrink)