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Organizational Learning to Integrate Sustainability

Organizational Learning to Integrate Sustainability. Bernd Siebenhüner/Marlen Arnold Oldenburg University. GELENA Research Group Social Learning and Sustainability Oldenburg University. Agenda. Background Framework Findings Consequences.

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Organizational Learning to Integrate Sustainability

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  1. Organizational Learning to Integrate Sustainability Bernd Siebenhüner/Marlen Arnold OldenburgUniversity GELENA Research Group Social Learning and Sustainability Oldenburg University www.gelena.net

  2. Agenda • Background • Framework • Findings • Consequences www.gelena.net

  3. Background: Claims for Learning in Concepts of Sustainable Business • Triple bottom line (Bowden, et al. 2001, Elkington 1997), • Company oriented sustainability (COSY) (Schneidewind 1994, Schneidewind, et al. 1997), • Corporate social responsibility (European Commission 2002, Ruggie 2002,Clarkson 1995) • Corporate sustainability (Dyllick, Hockerts 2002, Gladwin, et al. 1995, Schaltegger, et al. 2003, Shrivastava, Hart 1995a, Welford 1997) www.gelena.net

  4. Background: Implications • Many claims for the need of organisational learning towards sustainable development • Little empirical knowledge in the field • Attempt to focus on less researched influencing factors of organisational learning • Research of organisational handling of businesses • in 3 business fields: Mobility, Housing & Construction, Information & Communication Technologies www.gelena.net

  5. Framework: Sustainable Learning Defining Organisational Learning towards Sustainable Development • Changes in organisational routines, activities, and communication... • that result from changes in organisational knowledge and value base, • that address sustainable development • that lead to actual improvements www.gelena.net

  6. Framework: Forms of Learning and Changes • Single-loop learning: • Adaptive learning, changes in operations and outputs • Error correction, strategies, culture and values remain unchanged • Double-loop learning: • Strategies and values are changed/transformed • Often reflexive process • Incremental changes: • Adjustments in product and process designs • Additive technologies, limited adaptations • Radical changes: • New or far-reached changed processes, products and services • New forms of satisfying given needs www.gelena.net

  7. Conceptual Framework • External Influences • Market pressures • Public/stakeholder demands • Legal & technological requirements • Consultants • Structure • Hierarchical structures • Staff & job rotation • Reflexive mechanisms • Culture • Values and norms • Communication • Leadership styles • Conflicts Organisational Learning: Single-loop learning Double-loop learning • Behaviour • Change agents • Intrapreneure www.gelena.net

  8. Our Study • Case studies of 6 German medium-sized and large corporations • 3-6 interviews in each company, personal visit and additional telephone interviews • Period: between May and October 2004 • Interviews with management, sustainability department and research & development department • Additional questionnaire www.gelena.net

  9. Framework: Our Sample • Criteria • Sustainability related changes in product or process designs (successful/positive examples) • Stakeholder integration (dialogues, participating concepts) • General sustainability strategies with observable effects • Success stories in the fields of: • Mobility (1 medium-sized businesses, 1 large company) • Housing & Construction (2 medium-sized businesses) • Information & Communication Technologies (2 large companies) www.gelena.net

  10. Process Results Single-loop Learning Double-loop Learning Incremental changes Large company (Mobility) Large company (I&C), Large company (I&C) Radical changes 2 SMB (H&C), SMB (Mobility) Findings: Learning • Medium-size businesses have a higher potential for radical change than large companies • Double and single loop learning observed in both groups www.gelena.net

  11. Findings: Influencing Factors Structure: • Seize is important for the range of changes or results • Staff factors had barely influence • Reflexive mechanisms • Housing & construction companies: • target-driven learning mechanism • formal communication (manual, trainings) and top-down diffusion of new knowledge • Companies I&C: • well structured research & development processes drive learning and innovation • project and team work, platforms • Mobility companies: • guideline-driven learning processes • flexible organisational structure, self-organized teams www.gelena.net

  12. Findings: Influencing Factors (2) Organisational culture: • Culture matters for learning • Large firms: „good German corporate governance“: • stakeholder demands are taken seriously • companies in fear of loss of reputation • elaborate sustainability reporting schemes • Medium-size firms: management commitment crucial for „sustainability culture“ • Conflicts often occurred between economic (market) demands and sustainability objectives www.gelena.net

  13. Findings: Influencing Factors (3) Behavioural factors: • change agents played in most cases an important role combined with a participatory culture of decision making • Medium-size firms: change agents were in management functions • Large firms: Change agents mostly in sustainability units or R&D departments (I&C) External factors: • Stakeholder pressures in case of large firms highly relevant • Markets often hindering than supportive of sustainability initiatives • Contacts to external research institutions (e.g. universities) promoted sustainability initiatives • Legal requirements partly support sustainability changes www.gelena.net

  14. Conclusions • Proactive sustainable learning is impossible without „intrapreneurial“ change agents • Organisational structures are necessary to pass and implement information, knowledge and learning effects into the organization • Structural provisions do not suffice • Cultural factors no sufficient explanation for radical changes • Paradox: The higher the penetration of sustainable learning effects into the organization is the more a firm needs internal maintenance. (leadership, structure, …) • Management commitment essential, in particular in SMB • Transparency and publicity will be needed to allow stakeholders to monitor firm activities www.gelena.net

  15. Consequences • Large firms: need new institutions to implement the learning effects as well as new structures to anchor the learning effects deeply into the organization •  focus not only on platforms, but on human resource development: team work, project work • SMB: need new organizational structures to bundle and codify knowledge •  focus on platforms (codifying and transferring knowledge) • Change agents (Manager) with a high sustainable orientation is not enough, there is also a cooperative leadership necessary (internal participation (transferring and integrating knowledge) • How to develop markets towards sustainability from consumer and producer sides? www.gelena.net

  16. Thank you for listening! www.gelena.net

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