Sustainability-oriented innovation through shaping the ecosystem; a case of an e-bus industry in Indonesia

Abstract

Sustainability orientation is increasingly becoming a focus in companies’ top management. In addition to social, environmental, and economic impacts, a sustainability-based strategy can be a source of excellence for the company in the future. Using the Network for Business Sustainability model as a lens, this study examines how companies are involved in the challenge of forming an ecosystem that is still not mature when developing the electric bus business. It includes how companies change their business orientation, identify and collaborate with stakeholders, and encourage the acceleration of regulatory existence. The company and new business’ top management were interviewed to understand the company’s orientation as part of a group of companies. A total of six interviews were conducted for this purpose. The factor of reconceptualizing the business’s purpose and influencing the ecosystem through strategy, linkages, and learning was explored as the determining factor. Flexibility in business models, influential partners in global supply chains, and good relations with government agencies were also crucial factors. This study contributes to research on sustainability-oriented innovation, and corporate entrepreneurship. This study provides a comprehensive and general framework for sustainability-oriented innovation, highlighting the guiding principles of any ecosystem approach to innovation management.

Keywords:

• Sustainability oriented innovation
• EV ecosystem
• electric bus
• business development strategy
• venture creation

PUBLIC INTEREST STATEMENT

Most business leaders now pay attention to sustainability. Business concerns profit, social welfare, and protecting the environment. This intention requires the implementation of innovation within a company. This study explains how sustainability-oriented innovation plays a role in business development in Indonesia’s e-bus sector. In an immature ecosystem, the company is changing its business orientation, identifying and collaborating with essential actors in the ecosystem, approaching regulators, and utilizing technology.

Acknowledgments

The authors are thankful to the 2022 Post Doctoral Committee at Universitas Diponegoro, for advisory and support to carry out this research.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

The work was supported by the Universitas Diponegoro grant number .339/UN7.A/HK/VIII/2022.

Notes on contributors

Muhammad Taufiq Amir

Muhammad Taufiq Amir gained his Ph.D in Management in 2014. Now he is the Head of the Management program (2016-present) at Universitas Bakrie. Taufiq’s research focuses on how organizational conditions strengthen the capabilities of individuals and firms. In particular, he examines how positive relationships, emotions, meaning, compassion, and resilience contribute to individual and organizational strength. In early 2023 he founded the Innovation & Transformation LAB, where he and his colleagues promote research and training streams on innovation, transformation, and sustainability.

Bulan Prabawani

Bulan Prabawani is a Professor as well as a researcher at the Department of Business Administration, Faculty of Social and Political Sciences. She graduated with a bachelor’s degree in Business Administration (UNDIP), a master’s degree in Management (UNDIP), and holds a doctoral degree from Edith Cowan University, Australia. Bulan is actively involved in research at Education for Sustainable Development (ESD) and Business Sustainability in which she has obtained national competitive grants for research and publication since 2014 for ESD, redenomination, business sustainability.