Grand challenges demand collaboration through innovation across diverse stakeholders to address complexity and uncertainty. This study explores multi-stakeholder dynamics in R&D consortia, focusing on the IRIS² project—a European satellite initiative emphasizing strategic autonomy. By examining the interplay of coopetition and client-supplier relationships, we uncover the challenges of managing conflicting interests, diverse priorities, and risk-sharing among public and private actors. Using a longitudinal qualitative case study approach, we reveal how governance structures and collaboration strategies evolved to address these challenges. Key findings highlight the necessity of redefining roles to mitigate tensions and enhance cooperation, particularly among competing firms. This research contributes to the inter-organizational relationship (IOR) literature by detailing the emergence and management of complexities in multi-stakeholder consortia. Practical insights suggest that early proactive strategies and adaptive governance are vital for fostering innovation in large-scale collaborative projects, especially in high-tech and strategically significant industries.
While prior research has examined the determinants and outcomes of sustainability-driven innovation, the strategic interplay between leveraging internal capabilities and forming external collaborations remains underexplored, particularly in resource-intensive industries where dynamic capabilities play a pivotal role in balancing proprietary innovation with systemic partnerships. This study investigates how firms navigate the strategic dilemma of pursuing sustainability-driven innovation internally versus through external collaborations. Drawing on a longitudinal case study of ALPHA, a global mining leader, the research explores how internal capabilities and partnerships drive innovation in areas like low-carbon technologies, renewable energy, and circular economy practices. Findings highlight the trade-offs between control and resource sharing, emphasizing the role of dynamic capabilities in balancing proprietary innovation with systemic collaboration. This study contributes to the literature on sustainability-driven innovation by providing insights into the strategic responses to sustainability imperatives and offering practical implication for firms managing similar challenges.
