Lecture 1
Milestones in sustainable thinking
1972 – club of Rome; the limits to growth
1987 – united nations Brundtland report; our common future
2002 – Baumgart and McDonough; Cradle to cradle
2013 – Ellen MacArthur Foundation; towards the circular
economy
2015 – United nations; sustainable development goals
2018 – Kate Raworth; doughnut economics
Hockerts & Wüstenhagen 2010 Greening Goliaths
versus Emerging Davids
The paper analyses the interplay between greening goliaths and
emerging Davids, theorizing about the compounded impact that
promotes the sustainable transformation of the whole industry.
,Greening goliaths: large incumbent firms, using incremental
innovation to bring about sustainable development
Emerging Davids: start-up, young companies introducing disruptive
innovations
Both play a role of future industry success, making the interaction of the
two needed for impact.
Criteria Davids Goliaths
Age Rather new Old, incumbent
Size Small Large
Objective Socio-environmental Economical driven
form driven
Innovation Davids Goliaths
Disruptive Sustainable Sustainable corporate
entrepreneurship entrepreneurship
Incrementa Bioneers, social bricoleurs Sustainability management
l system, CSR, Eco-efficiency
Terminology:
Bioneers/Social bricoleurs:
o Small actors, active in a niche, using incremental innovation,
not seeking growth, staing in the left bullet niche
Sustainability/environmental management system:
o EMS, system supporting reducing impact for companies
CSR
o Sustainability efforts by corporates
Eco-efficiency
o Innovation strategy focused on gaining economic benefits
reducing the resources like materials, energy and water while
maintaining production levels
Sustainable entrepreneurship
o “The discovery and exploitation of economic opportunities
through the generation of market disequilibria that initiate the
transformation of a sector towards an environmentally and
socially more sustainable state.”
Using radical innovation to disrupt traditional markets
and drive industry wide change towards environmental
and social goals whilst remaining profitable
Co-evolution
When the start ups and incumbents in influence each other in the market.
, Author arguments
Need for transformational change, just incremental is not enough.
Therefore, different behaviour is expected.
Emerging David behaviour
- Advantage
- Innovative
- Part of the solution
- Value based, externalizing costs, asking a customer premium
Disadvantage
- Single issue focus, less good at addressing broad issues
- Idealistic or no attention for growth
- Prefer niche markets, so incumbents do not move in their markets
Greening goliath behaviour
Advantage
- Slow to react, once following catching up quick
- Benefit from premium prices set by start ups
- VC for monitoring Davids
Disadvantage
- Influence the setting and environmental standards in their favour
(Lobby)
- Keep standards fixed rather than encouraging improvement
Milestones in sustainable thinking
1972 – club of Rome; the limits to growth
1987 – united nations Brundtland report; our common future
2002 – Baumgart and McDonough; Cradle to cradle
2013 – Ellen MacArthur Foundation; towards the circular
economy
2015 – United nations; sustainable development goals
2018 – Kate Raworth; doughnut economics
Hockerts & Wüstenhagen 2010 Greening Goliaths
versus Emerging Davids
The paper analyses the interplay between greening goliaths and
emerging Davids, theorizing about the compounded impact that
promotes the sustainable transformation of the whole industry.
,Greening goliaths: large incumbent firms, using incremental
innovation to bring about sustainable development
Emerging Davids: start-up, young companies introducing disruptive
innovations
Both play a role of future industry success, making the interaction of the
two needed for impact.
Criteria Davids Goliaths
Age Rather new Old, incumbent
Size Small Large
Objective Socio-environmental Economical driven
form driven
Innovation Davids Goliaths
Disruptive Sustainable Sustainable corporate
entrepreneurship entrepreneurship
Incrementa Bioneers, social bricoleurs Sustainability management
l system, CSR, Eco-efficiency
Terminology:
Bioneers/Social bricoleurs:
o Small actors, active in a niche, using incremental innovation,
not seeking growth, staing in the left bullet niche
Sustainability/environmental management system:
o EMS, system supporting reducing impact for companies
CSR
o Sustainability efforts by corporates
Eco-efficiency
o Innovation strategy focused on gaining economic benefits
reducing the resources like materials, energy and water while
maintaining production levels
Sustainable entrepreneurship
o “The discovery and exploitation of economic opportunities
through the generation of market disequilibria that initiate the
transformation of a sector towards an environmentally and
socially more sustainable state.”
Using radical innovation to disrupt traditional markets
and drive industry wide change towards environmental
and social goals whilst remaining profitable
Co-evolution
When the start ups and incumbents in influence each other in the market.
, Author arguments
Need for transformational change, just incremental is not enough.
Therefore, different behaviour is expected.
Emerging David behaviour
- Advantage
- Innovative
- Part of the solution
- Value based, externalizing costs, asking a customer premium
Disadvantage
- Single issue focus, less good at addressing broad issues
- Idealistic or no attention for growth
- Prefer niche markets, so incumbents do not move in their markets
Greening goliath behaviour
Advantage
- Slow to react, once following catching up quick
- Benefit from premium prices set by start ups
- VC for monitoring Davids
Disadvantage
- Influence the setting and environmental standards in their favour
(Lobby)
- Keep standards fixed rather than encouraging improvement
