Organizational Sustainability and Business Innovation: A Strategic Framework for Long-Term Competitive Advantage Building Sustainable Organizations
DOI:
https://doi.org/10.63985/ttbr.v2i2.118Keywords:
organizational sustainability, business innovation, competitive advantage, dynamic capabilities, strategic frameworkAbstract
Organizations today face a persistent tension between pursuing profitability and meeting escalating expectations for environmental, social, and governance responsibility. This article develops an integrative strategic framework linking organizational sustainability and business innovation to long-term competitive advantage. Using a quantitative systematic literature review of 25 peer-reviewed sources published primarily between 2021 and 2026, screened through a PRISMA-based selection procedure from an initial pool of 142 records, this study synthesizes empirical and conceptual evidence on how dynamic capabilities, green and open innovation, strategic orientation, and business-model innovation jointly shape sustainable competitive positioning. Bibliometric coding of the selected studies indicates that organizations combining innovation capability with sustainability-oriented strategy report stronger, more durable performance outcomes than organizations pursuing either dimension alone. The proposed framework identifies four interacting pillars: dynamic capability renewal, sustainability-driven innovation, stakeholder-integrated value creation, and adaptive strategic orientation, moderated by environmental dynamism and mediated by competitive advantage. Findings suggest that the integration effect is strongest in resource-constrained and SME contexts, where innovation and sustainability jointly compensate for scale disadvantages. The article contributes a novel synthesis that repositions sustainability from a compliance cost to a strategic innovation resource, offering both a theoretical model and practical implications for managers designing resilient, future-oriented organizations.
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