ABSTRACT
This chapter discusses the new challenges involved in corporate strategic change towards sustainability. It reviews the general findings of the existing literature and introduces a conceptual framework to examine the role that dynamic capabilities can play in the process of aligning firms’ strategic orientation with various internal and external sustainability interests. The institution-based perspective argues that, as government, customers, public media, and society as a whole have taken increasing interest in sustainability issues; failure to respond to this institutional pressure threatens a firm’s legitimacy and survival. Referring to the evolutionary theory, resource-based perspectives view corporate sustainability as an ongoing, non-linear journey towards the intersection of environmental, social, and economic competence. Corporate change towards sustainability is interpreted as a strategic change under the growing external pressure for environment- and society-friendly development. The fast growth of the research regarding dynamic capabilities has provided a rich body of distinctive views and constructs.
