Impact of Continuous Innovation on Sustainability

This study examines the impact of continuous innovation on sustainability. It discusses the role of innovation in maintaining sustainability and analyzes the positive effects of innovation on business reputation and brand image. The study also explores different models and concepts of corporate social responsibility (CSR) applied by organizations to fulfill social needs and contribute to sustainability. A case study on Starbucks is used to illustrate the application of innovation in CSR and sustainability practices.

Business Project
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ABSTRACT
Overview- The relevance and importance of corporate social responsibility (CSR) is highly
significant today in this capitalist economy, to ensure the sustainability of life and business in the
future.
Method - Here, interpretivism philosophy has been used and qualitative strategy is used. The
data is gathered through secondary data collection method to obtain data. Thus, journals, articles,
etc. will be analysed and data is gathered.
Findings- Continuous innovation increases firm competency and capability. They are able to
emphasis more on use of resources in efficient way. Besides that, it provides them new platforms
for growth and opportunity. Negative impact of continuous innovation on sustainability is
company requires huge funds and resources in order to implement innovation.
Conclusion - CSR model of Kottler, triple bottom line, etc. is applied by company which has
helped in gaining competitive advantage in market. Also, Starbucks measures outcomes obtained
from implementing practice and then compare it with set goals.
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Table of Contents
ABSTRACT....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
RESEARCH QUESTION...............................................................................................................4
METHODOLOGY..........................................................................................................................5
LITERATURE REVIEW................................................................................................................6
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Innovation has become a basic component and source for every organisation. Without
innovation it has become difficult for business to survive in market. Along with that, innovation
has enabled in making change in process, procedure, methods, developing new products and
services, etc. Besides that, it also provides a competitive edge to companies to maintain their
reputation and brand image in market. Moreover, in order to succeed for long term and to
compete with rival’s innovation is necessary. But in present times, various organisations are
focusing on sustainability (Ansari, and Modarress, 2019). This is because it is concern for firms
to provide eco friendly products and services to people. CSR allows firm to contribute towards
society and solve others issues as well. However, it has been found that there is great impact of
CSR on firm reputation and image. It not only allows in creating a positive brand image in minds
of people but also empower employees to utilise resource in effective way.
Besides that, there are several models and concepts of CSR which are applied by
organisation in order to fulfil social needs. Also, CSR matter a lot to business which allows to
focus on customer needs as well. In present times, innovation is also implemented in CSR. This
is done to boost company image in market. Here, new ways of using resources is applied that has
helped in saving cost and expenses. Furthermore, new products are produced that can be recycled
and decomposed in easier way. There are new goals and objectives that are formed by
companies. Also, long term vision is set in CSR to ensure that reputation is maintained. The
relevance and importance of corporate social responsibility (CSR) is highly significant today in
this capitalist economy, to ensure the sustainability of life and business in the future. In addition,
energy efficiency is new concept emerged in CSR. The businesses are able to interact with
stakeholder and identify their needs (Pieroni, McAloone, and Pigosso, 2019). Thus, it has given
insight to them regarding their needs.
RESEARCH QUESTION
Aim- To analyse impact of continuous innovation on sustainability. A case study on Starbucks.
Objectives –
 To examine role of innovation in sustainability
 To analyse impact of continuous innovation on sustainability
 To recommend practice of sustainability that can be applied.
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Research question
 What is the role of innovation in sustainability?
 What is the impact of continuous innovation on sustainability?
 How sustainability practices can be applied by company?
METHODOLOGY
Research Philosophy- This is the first element described by researcher. It gives an overview
about overall researcher is been done. It becomes easy for researcher to proceed further after
selecting philosophy. Here, interpretivism philosophy will be used. It will help in finding impact
on innovation on sustainability.
Research strategy- It refers to procedure followed in collecting data. Generally, there are two
common research strategies used. These are quantitative and qualitative. In qualitative, only data
related to topic is collected and analysed to get more depth understanding. In present study,
qualitative strategy will be used (Smith and Stirling, 2018).
Research Approach- This will help in conducting the research in a smooth way. Generally, there
are three approaches which can be used. It includes deductive, inductive and abductive
approaches. In current research, scholar will use inductive approach.
Data Collection Method- Data collection is a process in which information is used from other
related sources to search answers of problems and examine the results. It can be divided into two
parts: primary and secondary data. The researcher will use secondary data collection method to
obtain data. Thus, journals, articles, etc. will be analysed and data is gathered.
Data Analysis- It is a process of interpreting and analysing data to obtain the precise information.
The researcher must be able to analyse data in an effective way so that aim and objectives will be
effectually attained. Here, thematic data analysis method will be used (El Bilali, 2018).
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LITERATURE REVIEW
Role of innovation in sustainability
As said by Gasde, Preiss, and Lang-Koetz, (2020), sustainability is becoming concern for
business in recent times. There has been major impact of environment change on people lives.
Also, the continuous change in climate is resulting in increasing global temperature and is affect
on entire ecosystem. Business plays vital role in maintaining sustainability. This is because they
implement several practices and contribute towards society as well. The business are only ones
that is highly impacting on environment in negative way. They are highly using resources such
as land, water, fossil fuels, etc. in ineffective way. So, it has led to disruption of resources and
creating imbalance between environment and ecosystem. Thus, it has led to creating negative
image of business in society and towards customers. Due to that they are not able to generate
high revenue and profits. In addition, it has become difficult for them to sustain in market for
long term as their reputation is hampered as well. However, businesses are focusing on
sustainability so that they can make minimise impact on environment. For that they are
implementing various practices that works towards best interest of society as well as stakeholder.
It is necessary for firm to sustain in local and global market by working in sustainable way.
Along with that, it is essential that organisation do not only focus on profits but also on
environment. Also, sustainability is highly important for business as from customer point of view
it helps in creating positive image. Besides, customer want firm to engage in saving and
protecting environment. In addition, they also want to solve issues related to environment.
Moreover, from business point of view it is required to get engage in maintaining sustainability
so that ecosystem is protected.
Georgiou, and et.al., (2020), said that innovation plays vital role in sustainability. It has
been found that business is able to apply new concepts in sustainability. In recent times, the base
of growth and expansion of business is formed on innovation. this is because there are various
types of innovation being occurred in business operations. In similar way, in sustainability as
well innovation is done. here, new products are developed that are eco friendly. Along with this,
companies are investing huge amount in R&D to find out new ways of sustainable practices. It
has allowed in finding out new ways to work in sustainable way. The firm need to make
continuous development in various practices so that impact on environment can be reduced.
Generally, there are 3 types of innovation in sustainability. They are eco, green and
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environmental innovation. thus, eco innovation refers to developing new products and services
which provide value to both business and customers. It helps in decreasing impact on
environment. It determines firm’s performance on basis of innovation. Here, green innovation
means change in hardware or software in technology which enable in conserving and saving
energy. There is positive impact on green innovation on firm performance. This allows them to
focus on social and environmental responsibility as well. However, environmental innovation
means to gain trust of customers in market. There is change in input and output as well of
materials which are being used in developing products. Firms engage in innovation for
sustainability related objectives, such as the reduction of material and energy costs and the
improvement of working conditions on health and safety. Sustainable innovation introduced
sustainability as a major goal of innovation.
In the view of Ávila, and et.al., (2017), there are various businesses which is facing
difficulty in implementing sustainability in present environment. They are not able to apply
practices of sustainability in effective way. Hence, it has not led to giving positive outcomes as
well. Thus, it requires for company to develop an effective strategy so that they are able enhance
capability and generate profit as well. It also allows in solving various social issues and
problems. CSR is viewed as an umbrella concept, which includes corporate citizenship,
corporate sustainability, stakeholder management, environmental management, business ethics
and corporate social performance. So, CSR is one strategy to run the business or sometimes its
core business especially in big organizations. In order to sustain for long term it is necessary for
companies to do and implement innovation. With that it becomes easy for business to apply
different practices of sustainability. It has been evaluated that Starbucks is successful example of
using innovation in sustainability. They have properly integrated CSR into their business model.
They communicate with stakeholders and then identify their needs.
According to Läpple, and Thorne (2019) starbucks has planned to recycle to all materials
and include usable cups up to 25% . besides that, LED lights are used by firm in their restaurants
that save energy as well. In addition, water faucet facility is applied in all stores of USA of
company. So, in this way they are able to save water and use it. also, Starbucks foundation is
charitable trust which is been established by firm towards sustainability.
Impact of continuous innovation on sustainability
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As elucidated by Lee, Díaz-Puente, and Vidueira, (2020), in order to maintain
sustainability for long term it requires for firm to make continuous innovation in it. This is
because it us useful in creating brand image in market. Moreover, it provides new ways and
techniques to apply various practices of sustainability by business. However, there is great
impact of continuous innovation on sustainability. It is found that there is positive impact of
innovation on sustainability. This is because innovation provide a framework and concept of new
ways of maintaining sustainability. Here, firm implement technology in process to reduce
wastage of resources. For example- use of AI, robots, etc. in operations and other business
functions allows in doing task in different way. Apart from that, use of energy efficient system
helps in reducing use of energy. Similarly, other innovations are also occurring such as use of
electric cars, renewable energy, etc. are some examples in it. Therefore, if firm is engaged in
continuous innovation then it enables in creating positive image of it in market. Technology is
now being used in all business functions. It is also used in sustainability.
As per the view of Gasde, , Preiss, and Lang-Koetz, , (2020), Continuous innovation is
embedded within an organizational culture as it gives capacity to manage. As the manufacturing
sector environment is considered as turbulent, manufacturers are compiled so that the consistent
innovation can satisfy the needs of the consumers. Also incorporate relationship management
that able consumer feedback. As it leads to the consistent improvement as this study focuses on
manufacturers must be integrating organizational learning and knowledge management. It also
focuses on the organizational learning as the process regarding informed interpretation and open
minded inquiry. Within such context, there is not firm that can focuses on survival within market
without understanding the market’s dynamics. Thus, it is vital for the manufacturers to collect
and maintain knowledge within relation the marketplace so that develop various innovative ways
so that sustain several competitive benefit.
As per the view of (Smith and Stirling, 2018). Knowledge management system is
required for firm in order to adopt consistent innovation more successfully that relied on the
knowledge management strategy. While there are several opinions that are consistent innovation
that has been advocated through researchers but at the same time knowledge management
application has also not been integrates more successfully through firms. Within this it is
strongly believes that manufacturers require to establish an in depth understanding regarding the
knowledge management such as organizing, planning, motivating as well as controlling
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people ,system and process within the firm in order to assure that it is considered as knowledge
creates assets that can be improved as employed more effectively. In addition to this knowledge
management is focuses on identifying as well as mapping several intellectual assets in the firm
making several vast amounts regarding corporate information regarding sharing of the best
practices as well as technology. Within the knowledge management integrate resource such as
culture, technology, capabilities, experience as well as talent within order to increase the
competitive benefit. Integrating such resources to work sd s full firm relied on the culture and
learning of a firm. Within such fact it relied on a kind of system thinking approach as it relies
that there must be a holistic approach to the knowledge acquisition as well as application that
From such perspectives can be disseminated by the whole firm’s business process.
As per the view of Pieroni, McAloone and Pigosso, (2019) consistent innovation collects
BPM and knowledge management so that easily sustain best business practices. BPM is termed
as a holistic firm’s management practice that needs top management understanding as well as
involvement to the business process. It is relied on a kind of a process architecture that captures
the relationship between business process as well as able to support processes as well as their
alignment alongside goals as well as polices of an entity. Innovation provide a framework
reducing use of energy in creating positive image of it in market.
As stated by Son, and Kim, (2018), in future innovation will transform way of
maintaining sustainability. This is because it will not only change way of doing business but also
use of resources, developing new products, etc. This will highly impact in reducing costs and
waste. With that firm is able to focus on other areas as well and contribute more towards CSR.
Basically, innovation also helps in improving business efficiency. Continuous innovation enables
in using new technology and tools in sustainability. Thus, it also creates positive impact on
stakeholders and society as organization get engaged in protecting environment. They focus on
performing operations in sustainable way. Apart from it, continuous innovation increases firm
competency and capability as well. They are able to emphasis more on use of resources in
efficient way. Besides that, it provides them new platforms for growth and opportunity. Hence, it
increases capability of firm to transform use of resources. In this SME are highly impacted as
they are able to compete with others and establish strong brand image in market. It is essential to
make improvements in sustainability as with change in stakeholder needs new goals have to
formed. The change in product design, features, materials, etc. are helpful in innovation. There
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are some reasons as well due to which firm is required to do continuous innovation in
sustainability. The main impact of sustainability is on three areas that are economic, environment
and social. In all these it makes things to get it done in proper way. It helps in economic way as
costs are reduced and environment is protected. Thus, it results in fulfilling social needs and
building good reputation.
However, as critiqued by De and et.al., (2020) there is negative impact as well of
continuous innovation on sustainability. This is because company requires huge funds and
resources in order to implement innovation. So, they might not be in position to incur more cost
on it. Also, as new and advance technology is used thus entire infra is modified. Moreover, the
main impact is that way of performing operations changes as process or methods changes.
Hence, it becomes difficult for firm to make adjustment in it. Along with that, sometimes
innovation done in sustainability fails. It may be due to change in trends, needs of people, new
laws, etc. Therefore, when this happens it highly impact on firm brand image and reputation
adversely. They need to focus on fulfilling social needs to ensure that sustainability is
maintained. Another negative impact is that sometimes innovation implemented is not properly.
So, it leads to decrease in efficiency of working of employees. In this way goals and objectives
are not attained. There is change in way of managing and handling of operations.
It has been analysed that impact of continuous innovation on sustainability depends on
how well business is able to implement practices. Moreover, it depends on success and failure of
innovation in it and how it is adopted by society. In addition, it requires to monitor and evaluate
performance of innovation as well so that accordingly measures are taken. It allows in gathering
relevant data and info from market that how well sustainability is maintained. This also helps in
growth and development of business (Ansari, and Modarress, 2019). Along with that,
innovation has enabled in making change in process, procedure, methods, developing new
products and services, etc. Besides that, it also provides a competitive edge to companies to
maintain their reputation and brand image in market. Moreover, in order to succeed for long term
and to compete with rival’s innovation is necessary. However, businesses are focusing on
sustainability so that they can make minimise impact on environment The main impact of
sustainability is on three areas that are economic, environment and social. In all these it makes
things to get it done in proper way. It helps in economic way as costs are reduced and
environment is protected. Thus, it results in fulfilling social needs and building good reputation..
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For that they are implementing various practices that works towards best interest of society as
well as stakeholder. It is necessary for firm to sustain in local and global market by working in
sustainable way. Along with that, it is essential that organisation do not only focus on profits but
also on environment.
Recommend practice of sustainability
As elucidated by Pieroni, McAloone. and Pigosso, (2019) a firm is required to implement
various practices of sustainability so that they can create a strong brand image. Apart from that, it
allows in fulfilling needs of stakeholder as well and solving social issues. There are different
practices of sustainability which is available. But it depends on business and social needs that
what type of practice is implemented. However, it also depends on goals and objectives of
organization as well. In addition, there are certain theories and models of sustainability that can
be applied by company. In this triple bottom line model can be applied in it. It provides
accounting framework in which there are 3 dimensions that are social, environment and finance.
The model is different from traditional one as it only focuses on ecological and social. Moreover,
there are 3 P’s in it that is people, planet and profit.
In economic the variables included in it are personal income, job growth, etc. which state
flow of money in sustainability. However, in environment they are consumption of electricity,
fossil fuels, waste management, etc. these all needs to be minimized so that sustainability is
maintained. At last, comes social variables that relate with society. It this it includes element
such as poverty, unemployment rate, health, etc. With help of Triple bottom line, it becomes
easy for business to make decisions. It is because it provides framework regarding area and what
can be done for it. There are many organisations as well who are effectively using this model like
P&G, GM, Unilever, etc. It has enabled in focusing on all 3 areas and ensuring that needs of all
stakeholder is fulfilled (Pieroni, McAloone and Pigosso, 2019). However, government is also
focusing on this model to ensure that business take proper and effective action in maintaining
sustainability. Hence, it will encourage cooperation between management and stakeholder and in
this way goals and objectives of sustainability is maintained. Alongside, the model can be used
in regional development as well. It will help in setting of goals in context of sustainability.
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CONCLUSION
From above it can be concluded that Starbucks is able to maintain sustainability in effective
way. They are doing continuous innovation in it and to develop strong brand image. Moreover,
CSR model of Kottler, triple bottom line, etc. is applied by them which has helped in gaining
competitive advantage in market. Also, Starbucks measure outcomes obtained from
implementing practice and then compare it with set goals. So, different practices are applied such
as use of bamboo straws, reduce use of plastic, etc. It has led to creating positive and good brand
image in market.
Recommendations
 The researcher should use primary data collection method as well so that fresh data is
gathered. It will help in analysing secondary and primary data and then writing findings.
 A survey can be conducted and various others companies’ data is also collected in that. It
will help in generating outcomes that how they have maintained sustainability.
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REFERENCES
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Moreira, R.M., 2017. Barriers to innovation and sustainability at universities around the
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oriented innovation on sustainability performance of small and medium sized
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system. Italian Journal of Food Science. 30(2).
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for New Technologies: An approach for collaborative R&D projects. Technology
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and its impact on sustainability: an empirical study within family wineries in
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Läpple, D. and Thorne, F., 2019. The role of innovation in farm economic sustainability:
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economy and sustainability: A review of approaches. Journal of Cleaner
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Smith, A. and Stirling, A., 2018. Innovation, sustainability and democracy: an analysis of
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