Dynamic Capabilities for Sustainability: Revealing the Systemic Key Factors

By applying systems thinking theory to capabilities literature, this paper examines the factors that support the development of dynamic capabilities towards sustainable management. For such, we conducted an in-depth single case study using Soft System Methodology (SSM) in an energy organisation from an emerging economy. Our analysis of the last twenty years of operation revealed that the organisation has developed new ways to change and adapt in a disturbing environment by integrating sustainability into three factors: (1) integrative strategy (green products, biodiversity, organic processes and self-sufficient electricity), (2) sustainable culture (sustainable mindset, environmental awareness, learning orientation and decision-making processes) and (3) organisational routines for innovation (new green processes and products, partnerships/alliances and knowledge management). Our results extend the literature by raising a conceptual framework of the fundamental dimensions of dynamic capabilities for sustainability. This is the first study that connects systems thinking and dynamic capabilities theories applied to sustainable management.