Sustainability, resilience and innovation in industrial electronics: a case study of internal, supply chain and external complexity

Abstract

The electrical and electronic equipment industry is key to climate and energy transitions, but its activities have a significant environmental footprint. Tangible improvements in the sustainability of this sector are difficult because of the layers of complexity that characterize this industry’s products, processes and supply chains. This article analyzes the different facets of complexity relevant to sustainability in the industrial electronics sector, by implementing an in-depth longitudinal case study of a leading Italian business-to-business multinational company. We identify three core dimensions of complexity management that are pivotal for corporate sustainability: internal complexity, supply chain complexity and external complexity. We find that handling sustainability in complex production systems with multitier and multiproduct value chains presents organizational and managerial challenges but also offers new competitive opportunities for resilience and innovation. Once the appropriate metrics, know-how and information flows are established, our results highlight the transferability of sustainable innovations in these complex environments.