Abstract
In Industry 4.0, enterprises have economic, social, and environmentally sustainable policies, and the implementation of these policies may lead to raising the national economy and society welfare. It can be achieved by firms' dynamic capabilities. Therefore, structuring of the activities of enterprises, especially SMEs and health sector organizations within the framework of sustainability and establishing standards by establishing control mechanisms, plays an important role in the development of the country. One of the most important responsibilities of managers in these sectors in implementing sustainable policies is to utilize the dynamic capabilities of the organization. In this context, it is necessary to have knowledge about what dynamic capabilities are and their relationship with sustainability. This study discusses the relationship between dynamic capabilities and sustainability of SMEs and the firms in health sector.
TopSustainable Development
Sustainable development is often used interchangeably with sustainable growth, but sustainability and sustainable development are not synonymous (Reddy and Thomson 2015). The concept of sustainability was first used in the field of management of natural resources but then it has been used in different fields such as energy, tourism, agriculture, and health (Hallstedt, 2017). Sustainable development is defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs by the World Commission on Environment and Development in 1987(Harris., 2003). And it has been expanded over the years to include perspectives on human needs and well-being (including non-economic variables, such as health and education, clean water and air, and the protection of natural beauty (hdr.undp.org/human-development-report) (Iqbal, 2018). Sustainability is one of the most common concepts which find its place among all vital activities; it can be used together with many issues such as sustainable development, sustainable growth, sustainable economies, sustainable societies and sustainable agriculture (Moore et al., 2017; Iqbal & Hassan, 2018).
Key Terms in this Chapter
Dynamic Capabilities: It is the ability of a firm or organization to learn new methods occurred to produce and serve and to meet the needs of customers according to environmental and technological changes.
Sustainability: Meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.
Corporate Sustainability: It is an approach aiming to create long-term stakeholder value through the implementation of a business strategy that focuses on the ethical, cultural, social, economic and environmental dimensions of doing business.
Economic Sustainability: The general definition of economic sustainability is the ability of an economy to support a defined level of economic production indefinitely.
Social Sustainability: It is the ability of a social system, such as a country, family, or organization, to function at a defined level of social wellbeing and harmony indefinitely. Problems like poverty, war, widespread injustice, and low education rates are symptoms a system is socially unsustainable.
Environmental Sustainability: It is concerned with whether environmental resources will be protected and maintained for future generations. Of the three pillars, the most important is environmental sustainability. If this is not solved, then no matter how hard we try the other pillars cannot be made strong because they are dependent on the greater system they live within, the environment.
Gross Domestic Product (GDP): It is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country's economic health. The top economic goal of most nations is growth. If a country's GDP goes flat, that's stagnation. If it falls for more than two quarters is an economic decline. No country has a GDP growth target of less than about 2%, except when recovering from a recession. Therefore, the de facto definition of economic sustainability is steady growth in total national GDP of a minimum of about 2% per year.