Value Challenge: The Role of Sustainability as an Open Innovation Approach

The great challenge of our time is to answer the question: How do companies successfully compete in changing markets and environments while contributing to sustainable development? This study aims to find a possible answer to this question by investigating sustainability as an open innovation approach and analyzing its effects on enterprise value. Sustainability is characterized by different scores because an international standard has not yet been identified. Hence, not all sustainability scores can properly evaluate the sustainable strategies implemented by companies. Using a sample of European listed companies, we sought to identify which score best represents sustainability as an open innovation approach. In addition, through the implementation of a two-stage regression model, we found a positive effect of sustainability as an open innovation approach on firm value. Overall, our results highlighted that in a changing landscape, open innovation is a successful approach to address sustainability challenges, leading toward value creation.