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Negative Unintended Consequences of Innovation- a case study regarding innovation and sustainability: The new Extended Value Creation Mechanism for Global Sustainability, the SNE SFI GS-framework
Linköping University, Department of Management and Engineering, Business Administration.
Linköping University, Department of Management and Engineering, Business Administration.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Innovation is often related to positive outcomes for the majority to enjoy that enhances welfare and facilitates everyday activities. In different fields of study (economics, management, sociology, history and science and technology) it is becoming a field of magnitude (Malerba and Brusoni, 2007). Fagerberg and Verspagen (2009) discuss the emerging interest of innovation in the field of social science. Although the interest within the subject of innovation is high, very little research has been done regarding the aim to contribute to the design innovation policy, developed by scholars studying the field of innovation. One often so neglected study within innovation is in the field of negative unintended consequences of innovation (NUCoI) (Sveiby et al, 2012). One main contributor of innovative activities is organizational operations leading to value for end customers. While firms often have the aim to create value with innovation for the greater benefit in society, sometimes these value-creating mechanisms may create unintended negative consequences in addition to the positive effects. While innovations are increasing in rapidness and numbers of output produced, the effects on society and the natural environment needs to be highlighted. With assumptions regarding vague CSR implementation in corporations (Newell, 2005), this research tries to grasp understanding on how NUCoI is perceived from the managerial perspective in organizations regarding their stakeholder viewpoint. As a starting point, the authors use Charlie Chaplin’s famous quote “More than machinery, we need humanity” from the movie “The Great Dictator” indicating the importance of caring for various stakes.

Purpose: The aim of this research is to highlight the new field of study in social science; Negative unintended consequences of innovation (NUCoI) in relation to the societal natural environment (society and the natural environment). The research contributes to the existing frameworks on organizational value creation mechanisms in innovation policy to incorporate the aspect of negative consequences of innovation (NCoI), in terms of sustainability to highlight the importance of secondary stakeholders.

Results: The new Extended Value Creation Mechanism for Global Sustainability, the Societal-Natural-Environment Stakeholder Framework of Innovation and Global Sustainability framework (SNE SFI GS-framework), aims to contribute in the long-term perspective for research in innovation policy by highlighting one aspect of a field of the often so neglected societal natural environment perspective, when competing rivalry becomes too fierce. The framework highlights the importance of secondary stakeholders, where primary stakeholders may act as a “link” between the organization and secondary stakeholders. Additionally, the authors suggest going to basic practices regarding sustainability with valuating the natural resources for a prospering sustainable society. The aspects in the research include stakeholder-theory, value-creation in terms of the societal natural environment, and innovation as a field of social science, negative consequences and organizational sense-making.

Place, publisher, year, edition, pages
2013. , 121 p.
Keyword [en]
Negative Unintended Consequences of Innovation, Value Creation, Globalization, Strategy, Management, Stakeholder theory, CSR, Pro-Innovation Bias
National Category
Business Administration
URN: urn:nbn:se:liu:diva-95610ISRN: LIU-IEI-FIL-A—13/01598—SEOAI: diva2:636727
Subject / course
Master's Programme in Business Administration – Strategic
Available from: 2013-09-09 Created: 2013-07-11 Last updated: 2013-09-09Bibliographically approved

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