Resilience in the diffusion of sustainable innovations: navigating change in value networks

When we think about resilience, our minds often drift towards personal strength, the capacity to endure personal adversity, or psychological toughness. Yet, resilience is equally crucial in understanding how entire industries and markets adapt and thrive amidst significant changes, particularly when those changes aim for sustainability, writes FRONT Associate professor Hanna Komulainen.
An areal viwe on yard with a check board with people sitting around it on the benches

My recent explorations into sustainable innovation diffusion—especially in the context of bioplastic food packaging and ecoconcrete—revealed that resilience is not just a buzzword, but a foundational element in reshaping markets and value networks.

Sustainable Innovations like bioplastic packaging can operate at multiple levels of resilience – firm, network and macro

Imagine an existing industry network, comfortably entrenched in decades-old habits, supply chains, and business relationships. Now, introduce a sustainable innovation—such as bioplastic packaging—that requires dismantling parts of this established structure. This is not merely replacing one material with another; it is about redefining relationships, re-evaluating partnerships, and reconstructing the market logic itself.

Our research showed clearly that introducing innovations like bioplastics means operating at multiple levels simultaneously—firm, network, and macro. Each level demands a unique type of resilience:

  • Firm-Level Resilience: Firms must internally adjust their operations, products, and business models. This includes, for example, transitioning away from longstanding partnerships with petrochemical suppliers towards new relationships with bioplastic providers.
  • Network-Level Resilience: At the broader industry network level, resilience is about collectively handling disruption. Here, actors such as suppliers, retailers, research institutions, and NGOs must find new ways to collaborate. Network resilience means absorbing shocks, negotiating shifts in power and influence, and balancing competing interests effectively.
  • Macro-Level Resilience: This form of resilience involves managing changes at the level of market norms, regulatory pressures, and public expectations. Actors collectively shape these larger societal factors, often slowly and painstakingly.

Collective Action as a Resilience Strategy

Perhaps one of the most compelling findings from our studies is the recognition that resilience within innovation diffusion is inherently collective. No single actor—be it a company, policymaker, or even a group of NGOs—can effectively reshape markets alone. The resilience required to sustain momentum and achieve significant market change emerges from collaborative, distributed mobilization across multiple stakeholders. Our analysis highlighted this vividly through the concept of "distributed mobilization," especially in conservative industries characterized by strong existing institutional frameworks, like the construction sector or food packaging industry.

This collective resilience isn't solely built through direct, obvious actions aimed explicitly at market reshaping. Interestingly, our results suggest indirect supportive actions—like education or incremental changes towards sustainability—also build significant resilience, creating conditions that indirectly accelerate larger shifts towards sustainable markets.

Defensive Actors often slow down market shifts

Every innovation process faces resistance. Defensive actors—those who prefer maintaining the status quo—often slow down market shifts. However, our findings suggest their impact is surprisingly limited over the long term, primarily due to the overwhelming social pressure toward sustainability. Even resistance indirectly contributes to resilience, forcing proponents of innovation to clarify their strategies, strengthen their alliances, and deepen their commitment to sustainable goals.

University-industry collaboration is a resilience booster

An essential yet often overlooked source of resilience is university-industry collaboration (UIC). Our research underscored the role of UIC as a critical facilitator of market creation and socio-cultural shifts. By broadening the scope of collaboration from simple R&D (Research and development) towards long-term strategic alliances, universities and industries together enhance systemic resilience. Sustainable open innovation, specifically, proves beneficial in aligning technological, market, and institutional changes needed for transitioning toward circular economy and sustainability.

Final thoughts: building the new while dismantling the old

Resilience in the diffusion of sustainable innovations is fundamentally about managing simultaneous acts of creation and destruction—dismantling outdated networks while cultivating new, sustainable ecosystems. This duality is challenging yet essential for long-term success.

Our collective ability to withstand setbacks, adapt to new market realities, and persist through gradual, sometimes frustratingly incremental progress, defines the pace and depth of sustainable innovation adoption. Understanding and embracing resilience in its complexity, from firm-level adjustments to macro-level shifts, is not just advisable—it is indispensable.

As we continue this path toward sustainability, acknowledging resilience as a shared, strategic resource will undoubtedly become more vital. How resilient is your organization or network in the face of sustainable change? Perhaps it's time to find out.

Writer of this blog post is Hanna Komulainen, FRONT Associate professor (tenure track) in Resilient Organizations and Business Networks, Oulu Business School, Department of Marketing, Management and International Business.

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Authors

hanna.komulainen-oulu.fi
Docent, Associate Professor (tenure track)
Department of Marketing, Management and International Business
University of Oulu