Short answer

Designers and engineers should actively seek opportunities for collaboration and external input (open innovation) throughout the product and system lifecycle to embed social and environmental value creation into their design processes.

Field: Innovation & Design
Source: Business Ethics the Environment & Responsibility (2023)
Method: Qualitative Case Study
Evidence: Strong effect

Implementing open innovation strategies can effectively integrate social and environmental benefits into core business operations, leading to the creation of shared value. This innovation & design research insight is drawn from a 2023 study published in Business Ethics the Environment & Responsibility. Using Qualitative case study, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and engineers should actively seek opportunities for collaboration and external input (open innovation) throughout the product and system lifecycle to embed social and environmental value creation into their design processes.

Study

Innovation & DesignRecentStrong effect

Open Innovation Practices Drive Shared Value Creation in Industrial Settings

Implementing open innovation strategies can effectively integrate social and environmental benefits into core business operations, leading to the creation of shared value.

Business Ethics the Environment & Responsibility · 2023

Key Findings

0129 distinct open innovation practices were identified across Enel's industrial sites.
02These practices were grouped into 11 microfoundations that support the three dynamics of creating shared value (reconceiving products/markets, redefining productivity, enabling local cluster development).
03Open innovation models are effective in addressing grand challenges like climate change.

Application

Design takeaway

How to apply

When designing new products or systems, consider how external partnerships and collaborative innovation can help achieve broader social and environmental objectives alongside commercial ones.

Project actions

01Consider how your design project can benefit from or contribute to broader societal goals.
02Explore partnerships or collaborations that could enhance your design's impact.

Method & Evidence

AimHow can open innovation practices be leveraged to create shared value by addressing societal challenges such as climate change within industrial operations?

MethodQualitative Case Study

ProcedureA 3-year in-depth case study was conducted at Enel, a renewable energy company, examining open innovation practices across the construction, operation, and repurposing phases of three industrial sites. Data was collected through interactions and analyzed in three steps to identify practices contributing to shared value creation dynamics.

ContextRenewable energy sector, industrial plant lifecycle management

Variables

IVOpen innovation practices

DVCreation of shared value (social, environmental, and economic benefits)

CVIndustrial plant lifecycle phases (construction, operation, repurposing), company size and sector (large renewable energy firm)

Strengths & Limitations

Strengths

+Longitudinal data collection over three years provides depth and context.
+Focus on microfoundations offers a granular understanding of how practices translate to value creation.

Limitations

A single company case might not represent all industries; the specific context of renewable energy might influence the types of open innovation practices observed.

Reliability & validity

The study's validity is strengthened by its in-depth, longitudinal approach to a single case. Reliability could be enhanced by triangulation of data sources and methods beyond direct interaction.

Think critically

To what extent can the success of open innovation in creating shared value be replicated in industries with less direct societal impact or in highly regulated environments?

Design Principles

"Integrate open innovation methodologies to systematically embed social and environmental value creation into industrial design and operations."

This research demonstrates a practical pathway for organizations to move beyond traditional corporate social responsibility by embedding sustainability into their innovation processes. It highlights how collaborative approaches can unlock new market opportunities and enhance operational efficiency while addressing significant societal challenges.

What This Means for Your Design

Companies can use 'open innovation' (working with outside people and organizations) to make their business better for society and the environment, not just for profit.

How to use in your project

1.Reference this study when discussing how collaborative design approaches can lead to 'creating shared value' and addressing global challenges.

Add to My Project

Quick Cite

Paragraph starter

The case of Enel demonstrates that open innovation practices are instrumental in creating shared value, effectively bridging business objectives with social and environmental benefits. By engaging external partners and ideas throughout the industrial lifecycle, organizations can develop solutions that address grand challenges like climate change while simultaneously enhancing productivity and market positioning.

Source

Business Ethics the Environment & Responsibility

Creating shared value through open innovation: Insights from the case of Enel industrial plants

journal · 2023

View source

Questions About This Research

What does the research say about open innovation practices drive shared value creation in industrial settings?: Designers and engineers should actively seek opportunities for collaboration and external input (open innovation) throughout the product and system lifecycle to embed social and environmental value creation into their design processes. Evidence: Business Ethics the Environment & Responsibility (2023).
Why does "Open Innovation Practices Drive Shared Value Creation in Industrial Settings" matter for design?: This research demonstrates a practical pathway for organizations to move beyond traditional corporate social responsibility by embedding sustainability into their innovation processes. It highlights how collaborative approaches can unlock new market opportunities and enhance operational efficiency while addressing significant societal challenges.
How can designers apply this research?: Designers and engineers should actively seek opportunities for collaboration and external input (open innovation) throughout the product and system lifecycle to embed social and environmental value creation into their design processes.
What were the main findings?: 29 distinct open innovation practices were identified across Enel's industrial sites.. These practices were grouped into 11 microfoundations that support the three dynamics of creating shared value (reconceiving products/markets, redefining productivity, enabling local cluster development).. Open innovation models are effective in addressing grand challenges like climate change.
What research method was used?: Qualitative Case Study.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2023 journal from Business Ethics the Environment & Responsibility.
What should I do differently in my next project?: When designing new products or systems, consider how external partnerships and collaborative innovation can help achieve broader social and environmental objectives alongside commercial ones.
What are the limitations?: Findings are based on a single case study within the renewable energy sector, which may limit generalizability to other industries or contexts.