| Summary: | The integration of innovation and sustainability has become important aspects for firms to consider in order to remain competitive. To address these issues and/or opportunities, firms need to have or acquire the knowledge and skills in order to have the capabilities necessary to implement and develop sustainable innovations. In a fluctuating market, the dynamic capabilities of a firm becomes important to address possible threats and opportunities prominent for sustainability-oriented innovations (SOI). In current literature, there is a lack of understanding on how the dynamic capabilities of a firm affect their ability to develop and implement SOI. Therefore, the purpose of this thesis was to explore how firms’ dynamic capabilities affect their ability to develop and implement SOI. To gather more in-depth insights about this phenomenon, this thesis conducted a single-case study on a firm operating in the greenhouse farming industry. The thesis concludes that the dynamic capabilities facilitate their abilities to develop and implement SOIs. Furthermore, eight microfoundations enabling dynamic capabilities were unveiled as key enablers of dynamic capabilities for firms ability to develop and implement SOIs. This thesis contributes to existing literature by acknowledging that the dynamic capabilities of a firm facilitate the development and implementation of SOI.
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