Dynamic Capabilities as Enablers for Sustainability‐Oriented Innovation: A Case Study in a Footwear Industry

ABSTRACT The literature indicates the relevance of sustainability‐oriented innovation (SOI). However, the knowledge about the influence of dynamic capabilities (DCs) and critical factors (CFs) in developing these innovations is still insufficient. This paper aims to analyze the DCs' influence (through CFs) in developing SOIs through an in‐depth explorative case study in two Brazilian unities at a multinational shoe company. The empirical results showed that the development of SOIs depends on the high influence on environmental, resource integration, and technological capabilities and moderate influence on absorptive, organizational, and networking capabilities due to the absence or nonstructuring of its CFs. “Waste management” (related to environmental DC) and “reputation (related to organizational DC)” emerged from empirical evidence. The paper provides empirical evidence of DC's influence (through CFs) in developing SOIs by suggesting eight propositions.