Addressing the Renewable Energy Paradox Through Open Social Innovation: A Dynamic Capabilities Framework

Abstract

Renewable energy is essential for advancing broader societal and sustainability goals and addressing grand challenges, particularly climate change, yet its development can reproduce social and environmental injustices across its lifecycle, giving rise to a paradox between the pursuit of socially equitable outcomes and profit-driven priorities. Addressing this paradox requires firms to open their innovation processes and build capabilities to turn diverse knowledge and social needs into scalable solutions. This study therefore examines how dynamic capabilities can support the design, implementation, and commercialisation of Open Social Innovation initiatives in the renewable energy sector. This paper proposes a novel framework explaining how firms can mobilise sensing, seizing, and transforming capabilities to co-create, implement, and scale socially oriented energy solutions, thereby advancing a more inclusive and just energy transition. Theoretically, this paper advances Open Social Innovation and dynamic capabilities theories and contributes to sustainability transition research by showing how firms can align collaborative innovation processes with social equity across the renewable energy lifecycle. Practically, it guides practitioners and policymakers in structuring inclusive innovation processes and developing governance arrangements that support a more just energy transition.