Faccin Et Al 2022 Developing Values Based Innovation Competences An Ecosystemic Approach

WSPC/150-IJIM 2240005 ISSN: 1363-9196FA
International Journal of Innovation Management

Vol. 26, No. 5 (June 2022) 2240005 (40 pages)
© World Scientiﬁc Publishing Europe Ltd.
DOI: 10.1142/S1363919622400059
DEVELOPING VALUES-BASED INNOVATION COMPETENCES:

AN ECOSYSTEMIC APPROACH
by Ina Gatto on 10/09/23. Re-use and distribution is strictly not permitted, except for Open Access articles.
KADÍGIA FACCIN*, BRUNO ANICET BITTENCOURT† and LISIANE MACHADO‡

Programa de Pós-graduação em Administração, Escola de Gestão e Negócios / Unisinos
Int. J. Innov. Mgt. 2022.26. Downloaded from www.worldscientific.com
Porto Alegre, Brasil

*kadigiaf@unisinos.br; kadigia@gmail.com
†
banicet@unisinos.br; brunoabittencourt@gmail.com
‡
lmachado@edu.unisinos.br; lisimachado@yahoo.com.br
Published 25 June 2022
This paper explores how competences are developed for values-based innovation. We con-
duct action research to develop a values-based network—an ecosystemic project; we propose
a Values-Based Innovation Competence Model (VBIC). Based on values-based innovation,
innovation pedagogy and activity theory, the model presents the process of developing com-
petences based on a system of activities with prerequisites, triggering factors and an expansive
learning cycle. We discovered three additional competences that lead to the development of a
values network: sensemaking, forecasting, and the meta-competence of orchestration. We also
found that competences develop over time, with a hierarchical relationship between them.
This model aims to help universities educate their students and organisations to facilitate
values-based innovation.
Keywords: Values-based innovation; individual innovation competences; ecosystem;

activity theory; action research.
Introduction
Innovation is a powerful force for changing the world. It can radically influence the
growth of organisations and enable them to introduce improvements in products,
services and management styles (Manohar and Pandit, 2013). A series of stud-
ies focused on responsible innovation, social innovation, sustainable innovation
and purpose-driven business, respectively, inaugurating a values-based approach
to innovation management (Breuer and Lüdeke-Freund, 2014). The values-based
*
Corresponding author.
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K. Faccin, B. A. Bittencourt & L. Machado
view offers a “new perspective and heuristic to deal with phenomena ranging from
product development to value network formation” (Breuer and Lüdeke-Freund,
2015, p. 3).
While the traditional view on value networks focuses on the creation of com-
petitive advantages and economic value, it does not systematically reflect upon
the shared values and normative orientations of network members, which moti-
vates the formation and persistence of networks or leads to their collapse in the
case of conflicting and incompatible values (Breuer and Lüdeke-Freund, 2017).
Thus, collaboration tools are needed to develop and maintain shared visions and
missions as a common ground for cross-industry groups that engage in network
formation and joint business model innovation (Breuer and Lüdeke-Freund, 2017).
This values-based perspective can serve as a means to overcome contextual—and

firm—specific barriers (Laukkanen and Patala, 2014). Moreover, it can overcome
the limitations resulting from current innovation tools and their influence on cog-
nition and team dynamics (Eppler et al., 2011). In this context, as a consequence, a
common language and perspective for framing, communicating and training, how
values and normative orientations can be managed for innovation.
To innovate, it becomes necessary for people to know how to share knowledge,
recognise opportunities, identify potential partners for collaboration and how to
initiate and conduct a collaborative project, recognise complementarities and com-
municate needs (Enkel et al., 2011), as well as be creative, think critically and net-
work (Keinänen and Kairisto-Mertanen, 2019). However, many current business
schools and training models do not concentrate efforts on rendering artifacts capa-
ble of enabling the development of these competences to act in ecosystems and,
therefore, teach values-based innovations in a normative perspective of innovation
management. Hurson (2007) noted that innovation cannot occur without consider-
ing multiple perspectives and utilising creative thinking. Thus, important questions
arise: How can people be trained in values network formation? What are the main
competences needed to deliver values-based innovations?
There are few and narrow approaches to innovation competences (e.g., Chang,
2014; Edwards-Schachter et al., 2015; Hu et al., 2016; Kasule et al., 2015).
Although there are many theoretical articles and practical cases on how to imple-
ment innovation pedagogy in practice (e.g., Kairisto-Mertanen et al., 2012;
Kettunen et al., 2013; Konst and Scheinin, 2018; Penttilä, 2016), few empirical
studies or statistical analyses on how these elements of learning environments can
be associated with the students’ innovation competences are published. Moreover,
Marin-Garcia et al. (2016) showed that there is a research gap in academic liter-
ature related to individual innovation competence, and on how to measure and
develop it (Keinänen and Kairisto-Mertanen, 2019).
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Developing Values-Based Innovation Competences: An Ecosystemic Approach
Therefore, we have identified the following gap/question in the theoret-

ical and managerial field: How are individual competences developed for
values-based innovation? We propose an ecosystemic model for the develop-
ment of values-based innovation competences (VBIC) in students. To accom-
plish this, we conducted action research was conducted with a project called the
Supply Challenge Project, in which students solve real problems in a company
(Keinänen and Kairisto-Mertanen, 2019). The project involved several actors in
the innovation ecosystem: a university (students, professors and teachers), the
focal company itself, its suppliers and partners, and other actors in the ecosys-
tem. It seeks to form a network based on values of innovation and sustainability
to facilitate values-based innovation by all actors involved.
At the same time, we present the main competences necessary for a process
composed of a system of activities. We discover three other essential competences
(in addition to those previously identified) needed to develop a values-based net-
work. Namely, sensemaking, forecasting and the meta-competence of orches-
tration. We find that VBIC develops over time, with a hierarchical relationship
between them. In other words, we perceive that some competences should be
developed earlier than others. The model focuses on the normative dimension
of the values-based view, allowing us to understand what are the prerequisites
and/or triggers, as well as the key actions for the development of values-based
innovation competences.
Is Values-Based Innovation linked to an

Ecosystem Innovation Approach?
In the last decade, innovation management literature shifted its attention from
products, processes and single business activities to the level of business model
innovation (Breuer and Lüdeke-Freund, 2017). While innovation in entire busi-
ness models and their components moved to the centre of strategy and innova-
tion scholars’ attention (e.g., Breuer, 2013; Chesbrough, 2010; Teece, 2010), two
crucial issues still need further attention. The first is the role of values in innova-
tion management. In particular, corporate visions, missions, and “the ask”, i.e.,
what a business asks its customers to do or to become (Schrage, 2012), are often
considered as detached issues of a cultural superstructure, which are only loosely
coupled with the core business of a company. The second issue is the interaction
between groups of actors collaborating in networks. Cross-sector phenomena, like
value chain deconstruction and increased innovation speed, challenge traditional
value chains (Schweizer, 2005). Networks and inter-organisational collaboration
become increasingly important contexts for business model innovations.
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In this context, values-based innovation can motivate the development of new

networks and business models that address complex societal problems (Breuer and
Lüdeke-Freund, 2017). Values are the fabric of a network and at the same time
an assumingly extensive source of untapped innovation potential for its members
(Breuer and Lüdeke-Freund, 2014). There are different uses for the term “value” or
“values”. We understand that a perspective based on human values as notions of the
desirable and “ordered systems of priorities” (Schwartz, 2012) is an essential fac-
tor, acknowledged for its decisive role in innovation management in general (e.g.,
Meissner and Wulf, 2021; Breuer and Lüdeke-Freund, 2017; Breuer et al., 2021).
In this paper, we will use the definition by Breuer and Lüdeke-Freund (2015) that
describes values as subjective notions of the desirable and criteria for decisions and
evaluations, providing heuristic and integrative functions for normative, strategic

and operational innovation management. In summary, values are what is being
considered important, worth engaging in, working, or even fighting for by indi-
viduals or complex social actors such as corporations (Breuer and Lüdeke-Freund,
2015). If values are codified and reinforced, e.g., through management measures,
they turn into normative orientations that are considered obligatory. The corporate
vision, mission and formal values statements are typical examples of normative
orientations.
Values play a critical role in the innovation culture of organisations and net-
works. Regardless of the type of innovation, ‘‘process’’, ‘‘product’’ or ‘‘business
model’’, they all imply values and common cultural traits which affect their inno-
vation success in their different fields of endeavour. Breuer and Lüdeke-Freund
(2015) argued that the intended levers and results of an innovation are derived from
three management dimensions: operational or instrumental innovation (including
innovation in product and service offerings and marketing instruments); strategic
business model innovation; and normative innovation to develop new identities and
new values-based inter-organisational networks. On the operational or instrumen-
tal management level, product and service-related customer values are addressed
by new value propositions (and their underlying offerings) and related marketing
instruments. The strategic management level deals with the development of new
business models and differentiation from competitors. On the normative manage-
ment level, corporate visions, missions and other overarching goals are to be con-
sidered, along with ethical guidelines for interaction with stakeholders within and
outside the company.
It is possible that different kinds of values, on different management levels,
lead to different forms of values-based innovation (Breuer and Lüdeke-Freund,
2015). In this paper, we will focus on the normative level. The normative ori-
entations underlying business activities extend innovation managers’ perspectives
beyond day-to-day routines and enable an adequate consideration of long-term
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goals. The shared values and the resulting normative orientations can exceed sin-
gle organisations and play a crucial role in the network’s formation (Breuer and
Lüdeke-Freund, 2017). Thereby, the integrative function of shared values may pro-
vide common ground for different stakeholders and interests within and outside an
organisation (Kotter and Heskett, 2011). In this sense, normative innovation may
result from the introduction of new values into an organisation or the network of
actors within a business ecosystem (Breuer and Lüdeke-Freund, 2015).
The integrative function predisposes values to not only facilitate horizontal,
vertical and meta-integration internally but also externally, pushing an open inno-
vation paradigm (Chesbrough, 2003) that builds on a rich exchange of internal
resources of the firm with external actors and diverse sources of knowledge. Thus,
the approach to innovation ecosystems emerges as a lens through which we can

understand how the relationship between different actors can promote values-based
innovation. An innovation ecosystem includes the evolving set of actors, activities
and artifacts, as well as the institutions and relations, including complementary
and substitute relations, that are important for the innovative performance of an
actor or a population of actors (Granstrand and Holgersson, 2020).
Studies on the development of innovation ecosystems have put forth bod-
ies of knowledge with a particular focus on the means of collaboration between
actors (Carayannis and Campbell, 2009). In this context, innovation ecosystems,
like the interconnection and interrelation of a network of actors (Gomes et al.,
2018), that interact to foster innovation (Reynolds and Uygun, 2018), may act as
a stimulating environment for shared value creation (Porter and Kramer, 2011).
Inter-organisational networks such as cross-industry or regional initiatives may be
constituted by a successful introduction of new values into a business ecosystem
(Breuer and Lüdeke-Freund, 2015). However, the collaboration between the actors
is not simple and commonplace; rather, it must be taught. Many initiatives aimed
at promoting innovation ecosystems encounter difficulties associated with a lack
of competences for collaboration (Su et al., 2018).
While the traditional view on value networks focuses on the creation of com-
petitive advantages and economic value, it does not systematically reflect upon the
shared values and normative orientations of network members, which motivates
the formation and persistence of networks or leads to their collapse in the case
of diverging and incompatible values (Breuer and Lüdeke-Freund, 2017). While
innovation processes benefit from collaboration (John-Steiner, 2000; Sawyer,
2003), new knowledge in real-life networks can begin with an individual (Nonaka
and Takeuchi, 1995).
Thus, understanding how to develop innovation competences based on these
values becomes necessary. It is understood that ecosystemic performance demands
professionals who are aligned with the same values to act in a network. However, it
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is not yet known how organisations and educational institutions can develop such
competences among their professionals and students. In the next section, we will
present the principles of innovation pedagogy and activity theory, two approaches
that contribute to the answer to this question.
Activity Theory and Innovation Pedagogy for Values-Based

Innovation Competences
There is a need for future professionals to be capable of participating in innovation

processes and developing innovations (Keinänen and Kairisto-Mertanen, 2019;
Lappalainen, 2018). A relationship that includes universities and companies, we
have to consider learning for innovation and the development of an innovation

competence. Considering European policies, Hero et al. (2017, p. 1), highlighted
that learning for innovation is the situation in which “students often learn in project
settings together with work organisations developing new solutions, products and
services. These authentic creative, social and collaborative settings offer an attrac-
tive learning environment”.
This learning for innovation promotes the development of competences.
Competence involves knowledge interrelated to skills and attitudes (Zabala and
Arnau, 2010) and, for its development to occur, it takes place in the action of
the individual, in a specific context (Boterf, 2003). The development of compe-
tences needs to be demonstrated in a real situation, i.e., to be competent is to act,
mobilising in an integrated way knowledge, skills and attitudes through a prob-
lem situation or an opportunity (Zabala and Arnau, 2010; Boterf, 2003; Zarifian,
2001; Perrenoud, 1999). According to Hero et al. (2017), an individual innovation
competence is a set of personal characteristics, knowledge, skills (or abilities) and
attitudes that are connected to creating novelties concretised and implemented via
collaboration in complex innovation processes.
The combination of knowledge with activities for innovation on one hand, and
pedagogy on the other, offers the necessary theoretical foundation to improve com-
petitiveness based on competence. This process takes place with the collaboration
of higher education institutions and the work market to implement the goal of
innovation pedagogy, which consists of combining learning with the production
and application of new knowledge (Penttilä et al., 2013). Innovation pedagogy
aims to develop innovation competences of individuals and groups and refers to
a learning approach answering to the needs of working life while emphasising
expertise linked to innovation. The aim of innovation pedagogy applied in higher
education is that graduating students become innovative and oriented towards
different development tasks, which means that they have acquired the so-called
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innovation competences expected in all working life environments, in addition

to the expertise in their study field, enabling them to take part and contribute in
innovation processes in these environments (Konst, 2017; Penttilä et al., 2013;
Kettunen et al., 2013).
The content of education programs addressing innovation context and its impact
on innovation competence development has been a growing field of interest within
higher education research (Bock et al., 2020). Among these educational programs,
the project FINCODA—Framework for Innovation Competences Development
and Assessment (https://www.fincoda.eu/), funded by the European Union to

establish students’ innovative ability, proposed a tool to measure their innovation
competences (Keinänen and Kairisto-Mertanen, 2019). In this tool, the innova-
tion competences are organised into five dimensions: creativity, critical thinking,
teamwork, initiative and networking (Butter and van Beest, 2017). An open
issue is whether they are confirmed or changed when analysing competences of
values-based innovation.
Collaboration between universities and companies is increasingly necessary
from the beginning of the students’ education since the construction of these part-
nerships through multidisciplinary projects to solve real-world problems allows
for learning individual and group situations and forms a network for students,
teachers, educational institutions, companies, managers, etc., generating ecosys-
tem dynamics in the process of developing innovation competences. One of the
biggest challenges encountered is determining how to develop such competences.
However, it is understood, from the principles of innovation pedagogy, that it is
possible from the resolution of a real problem and an interaction between different
actors.
Innovation pedagogy is based on active learning situations. Despite its impor-
tance, it is about a strategy; so it does not offer the fundamental elements to the
creation of activities able to provide the competences development. As an educa-
tional strategy, innovation pedagogy presents guiding elements as flexibilisation
and curricula, and the renovation of organisational structures to the creation of
essential competences to innovation, but does not orientate on how to develop
them. So, considering that our research problem aims to explain how the creation
of values-based innovation competences happens, we need to search for comple-
mentary concepts that would help us to understand the learning process. For this,
we used activity systems concepts, the zone of proximal development, expansive
learning and agency to support our study—concepts from Engestrom’s Activity
Theory (1987).
The activity concept focuses on complex interrelations between the individ-
ual subject and its community (Engeström, 1987). Activity is a complex form of
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relationship between individuals and their social context and includes collective
and cooperative actions for their development. Although each particular activity
is distinct and dependent on its context, all the activities have the same structure,
which forms an activity system (Engeström, 1987; Francisco and Klein, 2020).
The Activity Theory Model proposed by Engeström (1987) suggests that learning
is based on the expansive changes in human participatory activities. In this context,
expansive refers to the outcomes of participation in collaborative problem-solving
activities. The theory of expansive learning focuses on learning processes in which
the very subject of learning is transformed from an isolated individual to collec-

tives and networks.
Expansive learning is a type of learning, through collective zones of proximal
development (ZPD), which are zones where persons who are learning meet indi-
viduals that can help, cause transformations and development in their activity sys-
tems. Occurs when the isolated individual interacts with their community to solve
contradictions that permeate the activity (Engeström and Sannino, 2010; Francisco
and Klein, 2020).
In expansive learning, learners learn something that is not there yet. In other
words, the learners construct a new object and concept for their collective activity
and implement this new object and concept in practice. Traditionally, we expect
learning to be manifested as changes in the subject, i.e., in the learners’ behaviour
and cognition. Expansive learning is manifested primarily as changes in the object
of the collective activity. The most important outcome of expansive learning is the
agency—participants’ ability and will to shape their activity systems (Engeström
and Sannino, 2010).
We believe that the approach of innovation pedagogy and activity theory, the
concepts from both could enrich the values-based innovation framework. Thus,
we used the principles of these theoretical frameworks in the action research con-
ducted. In the next sections, we will present the project developed as well as the
model created.
Methodology
Faced with the challenge of developing competences for values-based innovation,

we started action research, which is an approach that includes the implementa-
tion of a transformative action (Kemmis and McTaggart, 2007). Action research is
appreciated as having the potential to deliver robust and practical knowledge for a
wide community of management and organisation scholars (Coghlan, 2011), and
to generate useful and rigorous knowledge (Ollila and Ystrom, 2020). Figure 1
shows how we organised the action research.
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By the authors
Fig. 1. Action research organisation.

Action research proposal

Our transformative action was materialised through a collaborative project that inte-
grated UNISINOS University—one of the largest private institutions in Brazil—
and Alpha—a fashion Brazilian retail and its suppliers, forming an ecosystem. To
ensure confidentiality, we use a fictional name for the organisation in the study,
the aforementioned Alpha. The project, called Supply Challenge Project, consisted
of students from the university training and offering management consulting to
Alpha suppliers. In this way, throughout the process, the project sought to develop
innovation competences based on the company’s values. Thus, we sought to meet
the demands of the company in developing its suppliers and of the universities
in developing their students. The focus of the project was to create a model for
developing values-based innovation competences based on innovation pedagogy
and activity theory.
UNISINOS University seeks to promote the integral formation of the human
being and their training for professional practice. The core values of the institution
are innovation, sustainability and positive impact on the community. For the com-
pany, innovation is related to seeking to develop new solutions and to ensuring that
services and products are made with the best that it has. Sustainability, on the other
hand, refers to production and relationships that are socially fair, environmentally
correct, and economically viable (Alfa Website, 2022). Alpha wants to be rec-
ognised for its sustainable focus in the fashion market. On the other hand, the pos-
itive impact/enchantment aims to guarantee that all of the company’s stakeholders
are satisfied and recognise the value in their relationship with Alpha.
The Bachelor’s degree in Business Administration course is considered one of
the best in Brazil. The main principles of the course are the competence-based
structure, the active learning methodology, the approach to the market and the
focus on innovation. Currently, several discussions about competences for
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values-based innovation are under debate at the university—especially leveraged

by the pandemic.
On the other hand, Alpha has almost 50 years of history, with more than 600
stores in Brazil, Uruguay and Argentina. The company aims to “deliver the best
experience in fashion and lifestyle [...] through an innovative and sustainable eco-
system” (Renner, 2020). With 5 different brands, Alpha also presents innovation,
sustainability and enchantment as its main values. These values are highlighted on
their website, in reports, in presentations, and even in their stores and products. The
company seeks to act upon and aspire to these values with all their stakeholders.
Action research design

The Supply Challenge Project arose as a project in which undergraduate students

in Administration provided consultancy services to entrepreneurs in the textile field
under the mentoring and sponsorship of corporate managers. The project was devel-
oped in a partnership between the company’s Human Resources and Supply Chain
sectors with the coordination of the university’s undergraduate course and manage-
ment professors. This project consisted of an eleven-week program, in which groups
of students offered management consultancy to Alpha suppliers with mentoring by
the organisation’s managers. The project aimed to explore and elaborate upon values
as motivating and attractive starting points for innovation projects (creating environ-
mental and social value; extending the range of one’s network; involving new stake-
holder groups) (Breuer and Lüdeke-Freund, 2015). In Table 1, we present the number
of people involved in the action research from each category of ecosystem actors.
Table 1. Number of people involved in the action research from each category of eco-
system actors.
Ecosystem actors Number of people involved

University (UNISINOS 20 undergraduate students
University) 2 professors
Company (Alpha) 4 collaborators from Human Resources
(1 coordinator, 1 supervisor and 2 analysts)
3 collaborators from the Supply Chain
(1 coordinator and 2 analysts)
7 technical analysts from the Supply Chain (advisors)
(analysts, consultants and supervisors)
7 managers from different areas (mentors)
(marketing, finance, accounting, innovation, technology)
Suppliers 7 suppliers
(small companies in the textile industry)
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The approach unites theory and practice. It takes the theory—activity theory
and innovation pedagogy—to the field, acting together with the studied subjects
(Brandão, 1984; Thiollent, 2003; Kemmis and McTaggart, 2007). The subjects are
involved in the research and can act more critically about their place in the envi-
ronment (Kemmis and McTaggart, 2007) being University, Company and Small
Businesses/Initiatives.
The project was organised in the following stages: diagnosis, analysis and feed-
back of results, development of solutions and final reflections. The work methodol-
ogy involved weekly challenges with previously established activities and meetings
with the sponsors, attendance (activities, training and guidance) with action on the
workgroups and the general project team. The focus of this project is on normative
innovation, in which the dedicated pursuit of a vision or mission defining overar-

ching goals, may require engagement beyond the boundaries of an organisation
to establish inter-organisational networks. Inter-organisational networks such as
cross-industry or regional initiatives may be constituted by a successful introduc-
tion of new values into a business ecosystem (Breuer and Lüdeke-Freund, 2015).
Data collection occurred from the researchers’ participant observation in the
development and monitoring of the project. The meetings were recorded in a field
diary. In addition, individual interviews were conducted, testimonials of partici-
pants were collected, and questionnaires were delivered at the end of the project.
It is important to notice that, during the participatory action research there was no
separation between the subject and the object since the subjects researched were
also objects of the research and collaboratively participated in its construction.
Table 2 lists the main data sources used in each of the analysis steps.
Action research analysis

To analyse the action research conducted, the project was analysed by three cat-
egories proposed by Kemmis and McTaggart (2007) and Greenwood and Levin
(2007). Planning—collecting the necessary data and planning along with the
actions to be taken. Acting and observing—the moment of action, which should be
observed to generate data that will feed the reflections. Reflecting—along with the
researched subjects, this stage involves reflecting on the actions taken, understand-
ing what emerged from the previous stage and, if necessary, providing inputs for
planning a new action. We decided on these three stages of analysis (Kemmis and
McTaggart, 2007; Greenwood and Levin, 2007) and not on more detailed analyses
such as those proposed by Coghlan (2011) due to the number of stages already
existing in the Supply Challenge Project. These three steps already contemplate
important elements provided by the action research experience and simplify the
analysis.
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Table 2. Main data sources used in each of the 5 steps from the project.
Step 1 Step 2 Step 3 Step 4 Step 5

Pedagogical Alpha strategic Technical reports Presentation reports Individual
course guidelines from the Supply from suppliers interviews with
planning UNISINOS Chain area diagnosis participants
Alpha website University (3 students,
UNISINOS strategic 2 Alpha
University guidelines employees—
website Human
Resources and
Supply Chain)
Alignment Alignment meetings Alignment meetings Participants’
meetings and project and project testimonials

and project organisation organisation (videos, texts
organisation (4 h (12 h of (12 h of and audios)
of participant participant participant — suppliers (7)
observation) observation) observation) — employees (3)
Observation and Assessment and
monitoring of Awareness
meetings (12 h) Questionnaire—
Platform workplace students (20)
e-mails
1 final evaluation
meeting (2 h)
We followed the analysis logic of planning, action and observation and reflec-
tion for each of the iterative steps of the project performed, as will be explained
in the next section. At the end of the project, it was possible to create a model—
the Values-Based Innovation Competence Model (VBIC) based on an ecosystem
approach, that could be used for other universities that practice the innovation
pedagogy. VBIC is based on activity theory and provides the opportunity to present
the process of developing innovation competences.
Analysis Based on Action Research: The Supply Challenge Project
The results of the action research are presented according to each step of the initiative.
Iterative Step 1: Identification of values and alignment of objectives

In this step, we initially identified and understood the company’s values. Later,
the company’s objectives were mapped onto being presented with all participants.
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Planning: We identified the opportunity to develop a project capable of develop-

ing both Alpha suppliers and the values-based innovation competences in our stu-
dents. To initiate actions, we planned to hold alignment meetings with Alpha and
research open company documents, such as its website and reports. Considering
the most recognised innovation competences from the literature about the ped-
agogy of innovation, we planned to hold meetings to understand how these five
competences could be developed during the development process of the compa-
ny’s suppliers. Understanding the company’s values was essential for developing
the project, as pointed out by Breuer and Lüdeke-Freund (2017). Our main chal-
lenge was to identify and align the values that would guide the project and guide
the development of individual competences.
Action: We held two meetings between the university and the company. The organ-
isations’ values and objectives were presented from institutional presentations. We
realised that the company’s main values are innovation, sustainability and enchant-
ment of the stakeholders. The understanding of each of these values was presented
by the collaborators and guided the following steps. Thus, the need to develop
competences that are aligned with these values in this framework of thought.
Following this, the University’s values were presented (innovation, sustainability
and positive impact on the community) and it was identified that the two organisa-
tions were aligned with their values. Besides that, the course coordinators brought
the research and presented the innovation competences they sought to develop in
their students. The company pointed out the possibility of involving the supply
chain industry to identify possible partners. Reports on the impact of the pandemic
on the company’s suppliers were presented and forwarded by the employees of the
supply chain management sector. These documents emphasised how social iso-
lation, economic crisis, health problems—consequences of the pandemic—were
influencing the business survival and mainly affecting the innovation values and
sustainability for the chain. Alpha employees and UNISINOS University coor-
dinators identified the need to understand more about the ecosystem and define
alternatives and define alternatives to this step of the action.
Reflection: Based on these actions, we reflected on the importance of the relation-
ship with the ecosystem in developing individual values-based innovation com-
petences and ensuring organisational improvements based on these relationships.
Innovation ecosystems are inhabited by a variety of species of actors who share
common goals (Brusoni and Prencipe, 2013); these actors interact cooperatively
and competitively to develop new products and deliver value that meets the needs
of the market (Adner and Kapoor, 2010). We understand that to delight people
innovatively and sustainably as well as to create value for the different actors, it
is necessary to train professionals capable of having ecosystemic activities. Thus,
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Table 3. Main reflections of Step 1: Identification of Values and Alignment of Objectives.
Prerequisite/trigger Employed action Generated impact Reflection

for research action from action
Opening of actors Research in the literature Alignment between We identified the main
to network action Meeting between actors values of the company.
University and Company Human value shared To develop values-based
Mapping the organisational by different innovation competences,
stakeholders in we need a system of
objectives
the ecosystem activities that solve real
problems.
developing individual values-based innovation competences becomes essential for

this process. We planned to use a real-world problem to act as a trigger for the
project. In the words of the UNISINOS BA coordinator: “the best way to verify
that a values-based competence is being developed is by solving a real problem”.
In Table 3, we list the main reflections of this stage.
As a next step, we decided to map which Alpha ecosystems would participate in
the discussions and why.
Iterative Step 2: Mapping of actors and identification of real problems

After the identification of values and alignment of objectives, we performed a
mapping of actors and identified the company’s problems.
Planning: The aim was to map and understand Alpha’s ecosystem, as identify-
ing the actors’ demands makes it possible to design learning experiences capable
of developing competences in students and generating values-based supplier net-
work innovation required for the company in the scope of this project. This would
effectively allow us to create an activity system (Engeström, 1987, 2010). For this
mapping, we planned meetings with different sectors of the company and with the
actors listed by them to understand their ecosystem. We considered this step very
important because to achieve a complex value proposition, innovating firms often
need to rely on other actors in their innovation ecosystem (Talmar et al., 2020).
The mapping followed the suggestions of Talmar et al. (2020) and was based on
the value added to the ecosystem by each actor, considering that each actor con-
tributes to the ecosystem in the form of a productive component—for which they
likely possess a comparative advantage relative to the other actors.
Action: Due to the size and representation of the company, we realised the com-
plexity and variety of actors connected to Alpha’s ecosystem. Various actors were
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surveyed during specific meetings, such as the Alpha Institute, consultancy compa-
nies, service providers, different sectors of the company (creation, strategy, logis-
tics), among others, to map all those who contributed interdependently with the
delivery of value-add via innovations. To choose the problem to be solved, we used
the values (innovation, sustainability and enchantment/positive impact on the com-
munity/stakeholders) as a selection criterion. Because it is a retail company, we
identified that to disseminate the values to all the networks, suppliers play a cru-
cial role. We selected the supply chain as the field for the project to be developed,
which totalled almost two thousand organisations from different scopes of action.
All these corroborated with the claims of the literature on innovation ecosystems,
regarding the understanding that a single company does not normally have the
resources to develop and commercialise a complex value proposition from start to

finish (Appleyard and Chesbrough, 2017). It is worth mentioning that, in a pan-
demic context, the need to develop and assist them in guaranteeing their survival in
the market and their contribution to the generation of innovation based on the com-
pany’s values increased. We talked with three suppliers indicated by the supply
chain area that validated this demand. The result of this step was the mapping of
the actors. Up to this step, students were not involved, only professors, researchers
and company employees.
Reflection: With the definition of the problem to be solved, the need to design
a system of activities that involves the ecosystem actors’ demands and enables
the development of values-based innovation competences in the students arose
(Engeström, 2010). Therefore, we believe that the construction of activities may
use values-based perspective requisites (Enkel et al., 2011). “Based on the demand
of each actor, we can think of a set of actions that seek an ecosystemic solution”,
says the company’s manager. In Table 4, we present the main reflections of this
stage.
Table 4. Main reflections of Step 2: Mapping of actors and identification of real problems.
Prerequisite/trigger Employed actions Generated impact Reflection

Alignment Ecosystem mapping Defined demands of each We have defined a real
between actors Demand actor, e.g., disseminate problem that encompasses
Identification of identification the company’s values, the demands of different
values Survey of develop the suppliers actors.
possibilities (help them in the We identified that the
management area) and construction of the
develop innovation activity system must
competences in the be carried out from the
students. values-based perspective.
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Based on these reflections, we organised the Supply Challenge Project, as can

be seen in the next step. It is, in fact, on the next stage of our research that the com-
petence development model arises.
Iterative Step 3: Designing the project

After mapping the actors and identifying the company’s real problems, we pre-
sented the Project Design to be implemented.
Planning: We organised a committee to design activities and follow the project

through periodic meetings. As references for the design of the project, to meet
the established objectives, we used innovation pedagogy as a strategy and the five
innovation competences highlighted by this literature. We sought the fundamentals

of activity theory to create the activities and provide a process of expansive learn-
ing for these competences, remembering that one of the main points of this project
was to develop and share values—a values-based network formation.
Action: The design of the project lasted two weeks and featured three web meet-
ings with all members of the organising committee. At the first meeting, we aligned
the values to be shared with the ecosystem actors: innovation, sustainability and
enchantment/positive impact on the community/stakeholders. From this, we iden-
tified that the students needed to develop a set of competences that promoted
innovation, acted in an ecosystemic way, and were also based on sustainability.
Thus, the values had a transversal role in the project’s design. In the sequence, we
discussed each of the individual innovation competences listed by the innovation
pedagogy (Konst and Kairisto-Mertanen, 2019). We sought to align concepts of
the five innovation competences defined by the literature, list their behaviours, and
identify leverage factors for their development. The results of this discussion can
be seen in Table 5.
In the second meeting, we started with the alignment on the real problem to
be solved to build the system of activities for the project, which was the diffi-
culty in managing Alpha suppliers at the time of the pandemic. According to the
innovation pedagogy, learning methods must be activating and versatile (Konst
and Kairisto-Mertanen, 2019). From this, we started to develop activities based on
the requirements of the values-based perspective (Enkel et al., 2011; Breuer and
Lüdeke-Freund, 2017) and the foundations of activity theory (Engeström, 2010).
The expansive cycle begins with individual subjects questioning the accepted
practice, and this gradually expands into a collective movement or institution.
Ascending from the abstract to the concrete is achieved through specific epis-
temic or learning actions. Together, these actions form an expansive cycle or spi-
ral. The process of expansive learning should be understood as the construction
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Table 5. Exploration of Individual Innovation Competence: description, behaviours and leverage
factors.
Individual Competences Expected behaviours Leverage factors for

innovation description development
competences
Creativity Ability to think beyond Generation of ideas, generation of Promote the
the common sense improvements, problem solving construction of
of the environment and creative attitude (Pérez- new solutions.
(FINCODA, 2017). Peñalver et al., 2018; Marin-

Garcia et al. (2016).
Critical Ability to analyse and Think differently, analyse and Analyse and
Thinking evaluate advantages identify, globalise, assess, and evaluate data and
and disadvantages predict (Pérez-Peñalver et al., scenarios.

and estimate the risks 2018; Marin-Garcia et al. (2016).
involved for a purpose
(FINCODA, 2017).
Initiative An individual’s ability Team mobilisation, mobilisation Mobilise people and
to influence, make of key partners, organisation of act concerning
decisions and the workflow, implementation of the challenges
mobilise people, thus ideas, take on different tasks, take presented.
promoting positive acceptable risks, and persistence
changes (FINCODA, (Pérez-Peñalver et al., 2018;
2017). Marin-Garcia et al. (2016).
Team Work Ability to work Work well in a team and mobilise Work collaboratively
effectively with them to work well (Pérez- with a group
others in a group Peñalver et al., 2018; Marin- of people on a
(FINCODA, 2017). Garcia et al. (2016). project.
Networking Ability to involve Establish the necessary contacts, To relate and work
external/internal establish contacts with external with different
stakeholders in agents, work well in different actors.
internal work contexts, and work well with
(FINCODA, 2017). diversity (Pérez-Peñalver et al.,
2018; Marin-Garcia et al. (2016).
and resolution of successively evolving contradictions in the activity system

(Engeström, 1987). The sum of individual pieces of knowledge contributes to
the creation of new knowledge, going beyond the competences and knowledge
of those individuals who took part in the collaborative problem-solving activi-
ties (Francisco and Klein, 2020). We built twelve activities that aimed to develop
students’ values-based innovation competences. “Our idea is to create a model
of activities that would serve as a basis to solve other problems in the company
as well”, said the Human Resources representative. The list of activities designed
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can be seen in Table 6. It was developed based on the findings of the field (action
research) from a cross with the theoretical framework.
In the third project design meeting, we sought to review the activities devel-
oped and organise the operation of the project. A management consultancy project
was designed for the company’s suppliers that would be carried out by university
students with the support of Alpha managers, thus promoting interaction between
different actors in the ecosystem (Konst and Kairisto-Mertanen, 2019). Such con-
sultancy would involve the construction of a diagnosis and its application in addi-
tion to the proposition and implementation of improvements. With the intended

Table 6. Activity system planning based on requirements from the values-based perspective and
activity theory.
Leverage factors Values-based Principles of activity Activity planning

for competences perspective theory
development requirements
To relate and work Share knowledge To question Kick-off and
with different actors contextualisation
(Networking)
Analyse and evaluate Identify potential Problem ownership
data and scenarios partners for
(Critical Thinking) collaboration
Recognise Analyse Elaboration of the diagnosis
opportunities Diagnostic delivery and
adjustment
Diagnostic application
Analysis of diagnostic
results
Promote the Identify Model a solution Company feedback and
construction of new complementarities discussion
solutions (Creativity) Examine and test a Formulation of the solution
Mobilise people and new model for the company
act concerning the Start and conduct Implement new Application of the solution
challenges presented a collaborative model at the company
(Initiative) project
Work collaboratively Validation of the solution at
with a group of the company
people on a project Communicate needs Reflect on the process Discussion of results
(Team Work) Consolidate and Final presentation
generalise new
practice
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results, the development of management tools, training of suppliers, strengthen-

ing of the relationship between company and suppliers, propositioning of pro-
fessional experience to students and the development of values-based innovation
competences would take place. The solutions generated should be aligned with
innovation, sustainability and enchantment/positive impact on the community/
stakeholders.
We decided that the initiative would be conceived in the form of a project, given
the understanding that a project is a temporary organisation, also recognised as
an alternative way for the spatial insertion of learning and knowledge creation
in a given location (Asheim and Gertler, 2006). Also, the name, schedule, struc-
ture, methodology and communication channels were stipulated. The project was
named Supply Challenge Project and would involve twenty-one students from the
university who would be divided into seven groups, each serving as a supplier.
Beyond that, each group would have a sponsor as well as a mentor from Alpha.
The sponsor would be a collaborator in the supply chain sector with technical
knowledge of the area, while the mentor would be a company leader (from differ-
ent areas) who would support management issues. The purpose of this organisation
was to promote multidisciplinarity and renew the “role of teachers and students”,
as advocated by the innovation pedagogy.
Students need good study competences to take an active and responsible role in
their learning (Konst and Kairisto-Mertanen, 2019). Regarding the project’s meth-
odology, we sought to structure a set of activities that would provide the develop-
ment of previously established competences and the achievement of the objectives
set. “We developed a methodology with two purposes: to develop the students’
competences and to solve the real problem”, brought by the BA coordinator from
Unisinos. The work methodology was designed based on weekly challenges with
previously established activities, offering content related to the challenge, presen-
tations of external experiences (master class), meetings with sponsors, services to
suppliers and meetings to monitor the project.
It is important to note that, as a result of the pandemic and the location of the
different suppliers, the project would take place exclusively in the remote format.
Therefore, a platform used by the company—the workplace—was established as
a channel for interactions between groups and the project organisation. Microsoft
Teams was defined as the tool for holding meetings between working groups and
consultancies, and the email was used for official project communications.
Reflection: During this process, we designed the project starting from the iden-
tification of the competences and the proposition of the system of activities to
develop them. While several types of research, both in the academic and mana-
gerial fields, emphasise the importance of innovation competences development,
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Table 7. Summary of the reflection of Step 3: Designing the project.
Prerequisite/trigger Employed actions Generated impact Reflections

Definition of the Project design Ecosystemic The discussion about the design
real problem project of the project allowed us to
present the concept on how
to develop values-based
innovation competences.
determining how to develop them is still unknown (Lappalainen, 2018; Hero et al.,
2017; Marin-Garcia et al., 2013). We sought to fill this gap and proposed a process
based on the construction of a system of activities, as each activity is a complex

form of relationship between individuals and their social context and includes col-
lective and cooperative actions for their development (Engeström, 1987; Francisco
and Klein, 2020).
With the project design, we were able to propose a system of activities capable
of developing and sharing the values of the network, solving a real problem of the
ecosystem and developing values-based innovation competences in the students.
In the next step, we will discuss the project’s implementation process to check the
consistency of the proposed activities.
It is important to highlight that the design of the project had already been car-
ried out in an ecosystemic way, from a diverse organising committee that involved
different actors of the ecosystem. Table 7 provides a summary of the reflection of
this stage.
In the next step, we will present the execution of the project.
Iterative Step 4: Project implementation

After the project was designed, it was time to present, communicate and imple-
ment it. Thus, this step intends to discuss the process of carrying out the project.
Planning: The execution of the project was planned by the organising commit-
tee. Therefore, responsibilities were divided and an action schedule was listed. It
is worth mentioning that weekly meetings were defined for the monitoring and
replanning of actions, as necessary. As main actions on the schedule, there was
the joint validation of the project by the management of the company and the uni-
versity; the selection, awareness and communication for the company’s suppliers,
students, sponsors and mentors; and the launch of the project with the division
of workgroups and allocation of companies. Company participants, suppliers and
students were chosen and divided into groups by Alpha and UNISINOS.
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Action: The project started from a virtual event in which the work proposal and
the participants involved were discussed. According to one of the students, the
meeting was very informal and productive and “not like regular classes”. For this
meeting, the students had been divided into groups and already had the challenge
of preparing a presentation. Then, they were introduced to the sponsors and men-
tors responsible for each group. More specifically, an activity was held to introduce
Alpha’s students and employees in which the company’s values were reinforced.
The first week was dedicated to the presentations and contextualising the supply
chain area. In addition, the groups also had a meeting to take ownership of the
problem and identify the main challenges for Alpha and its suppliers. After an
understanding of the market, students were challenged to develop a diagnostic tool
to assess the management demands of suppliers. It started with proposals by the

working groups, which were then discussed and unified in a single instrument for
all groups. From this, students were introduced to suppliers and the designed diag-
nosis was applied. In the following weeks, the team analysed the results, returned
them to the companies, suggested improvements and assisted in their implemen-
tations. Finally, the students evaluated the consultancy process with suppliers and
prepared a presentation of the results to the company’s board of directors and the
coordination of the University course.
The project organisation followed the previously planned structure in which
a weekly challenge was presented (each activity turned into a weekly challenge)
together with the provision of related content and the participation of external
guests who shared their experiences through the master class. In addition, the stu-
dents had at least one meeting with their sponsors and mentors, with the client-sup-
plier and with the group organiser and other students accompanying the meeting.
It is worth noting that during the project there were schedule changes due to the
availability of the different actors. However, deliveries remained the same. These
scheduling changes were pointed out by the students as the main challenge of the
project in the follow-up meetings. We realised that the masterclasses with external
guests were the most awaited moments of the week by the students. This caused us
to reflect on if this did not happen once the activity was in the expository format,
as normally occurs in classes.
Reflection: We realised that the design stage of the project was essential for suc-
cessful implementation. “The key to success was that we planned it together; it
made all the difference”, said a company employee. The system of activities was
built to guarantee the creation and sharing of values with the network, to solve a
real problem of the ecosystem and to develop values-based individual innovation
competences. We believe that regular monitoring meetings were essential to ensure
the engagement of all participants. As a reflection of the execution stage, it was
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possible to perceive that because the project aimed to solve a real problem, in an
ecosystemic way, we dealt with a complex, dynamic and uncertain scenario, that
is, a favourable context to develop innovation competence (Hero et al., 2017).
In this sense, we understand that the project’s organising committee had no con-
trol over the meetings and experiences of each participant, as in a certain way it
happens in traditional teaching and training environments. However, we found that
the different proposed actions and the ecosystem context required participants to
develop certain competences.
Thus, we reinforce that the main trigger for this stage was the ecosystem project
designed in the previous stage. For the execution of the project, the involvement
and performance of different actors in the ecosystem were necessary. Therefore,
everyone had to develop the ability to work as a team. We noticed that meeting the
objective of developing and sharing company values among students, employees
and suppliers was a great challenge. As an observation, we realised that we all had
to adapt to meet the different demands. “We identified that this teamwork allowed
us to share the values that we would not be able to achieve on our own”, pointed
out an Alpha employee. Therefore, we saw that the impact caused by the stage was
the value network formation in the middle of a pandemic. We emphasise, more
specifically, the contribution of this value to the innovation potential generated.
In addition, we observed that the project resulted in a solution to a real prob-
lem. According to an Alpha employee, the diagnostic model and the improvements
proposed (such as cash flow, inventory management, process design, and others)
and implemented by the groups should be expanded to other suppliers that are
facing problems due to the pandemic. The validation of the project’s solution can
also be confirmed by the statement of one of the suppliers: “the help of the groups
was essential for the survival of our business”. This testimony reinforces that the
consulting carried out by the students contributed to the business reinventing itself
in a pandemic context. It was identified that the solutions were in accordance with
the previously defined values. We emphasise that the solutions built sought to bring
innovation and an approximation and enchantment with the stakeholders in a sus-
tainable way. We also observed that the implementation of the model contributed
to the development of individual innovation competences in students. Based on the
proposed challenges, we were able to observe behaviours that showed the devel-
opment of the proposed competences. We realised that the students related and
worked with different actors, showing networking competence. “I believe that I
learned a lot about building projects in collaboration with people from different
areas and realities”, said one of the students. This relationship was punctuated in
different data collections. According to another student, the project allowed him
“to know how to deal with different profiles, exchange knowledge, mainly based on
the assistance and support of the sponsors and mentors”.
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The behaviours of mobilising people and working collectively in the face of the
proposed challenges show that students have developed initiative and teamwork
competences, as we can see in the following statement: “I became more able to
take the initiative and lead a group of individuals”. Another student recognised
that the common purpose drove collaborative action: “We did great teamwork,
each one collaborating with their skills and knowledge for the same goal which
was to help the company”.
When we observed that students had analysed and evaluated scenarios, we iden-
tified the development of critical thinking. “The opportunity to talk openly with
people from different sectors at Alpha, adding knowledge and stimulating critical
thinking about several factors”, brought one of the students. Such competence
can also be seen in another student’s discourse of responsibility: “throughout the

project, we always had to be making decisions [...] what we decided could affect
the lives of 250 people in a company”.
Still, we realised that the fact that they had built new solutions influenced the
development of creativity. Evidence of these competences can be seen from the
following statement: “Knowing how to analyze diagnoses and work succinctly in a
team, developing actions that are appropriate for the company”. Another student
also brought the behaviour of having sought different references to validate the
development of such competence: “we had to be creative to develop solutions that
met their needs [suppliers] and at the same time were feasible to apply [...] we
sought several references and designed different scenarios”.
In general, we realised that the proposed system of activities evidenced the for-
mation of a values network, the solution of a problem and the development of
individual VBI competences. This occurs once there is a convergence of different
actors acting in alignment with the same values. In addition, we believe that in
addition to the five competences previously established in the literature, we iden-
tified other specific competences that have been developed and are directly linked
to values-based innovation (VBI) in a normative management dimension. Table 8
details a summary of this reflection.
We will explore these findings further in the next step.
Table 8. Summary of the reflection of Step 4: Project implementation.

Ecosystemic Project launch Normative innovation (value We implemented and
project Organisation of creation and sharing— validated a model
meetings values network formation) to develop values-
Follow-up meetings Resolution of a real problem based innovation
Development of individual competences.
innovation competence
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Iterative Step 5: Results analysis

After the completion of the project, we sought to analyse the results, which is the
main objective of this stage.
Planning: To understand the results of the project, we planned different sources
for data collection. We organised the last meeting of the project for collective feed-
back, a moment when the participants from the university and the company pre-
sented their opinions about the experience. We asked suppliers for videos with
testimonials detailing how they evaluated the project. We also sent a questionnaire
to the students to verify their perception of the project as well as their development
based on the experience. Finally, we conducted individual interviews with some
students to deepen these perceptions.
Thus, we highlight, methodologically, that a triangulation of views is capable of

validating the development of competences. Ecological triangulation unpicks the
mutually interdependent relationships between behaviour, persons and environ-
ments and proposes that the phenomenon be studied from different points of view
since the questions can be answered from cumulative and multifaceted evidence
(Barnett-Page and Thomas, 2009; Dresch et al., 2015).
Action: The students brought, as the main perceived results, the possibility of exer-
cising in practice the contents learned in the classroom. They also stressed that
they had to leave their comfort zone and “deal with the real world ”. An interviewee
pointed out that interacting with different people and getting to know how compa-
nies work was the best part of the project. Another student also highlighted how the
experience with a company like Alpha will be positive for his curriculum. Alpha
mentors and suppliers, on the other hand, showed that the participation of the stu-
dents brought “more energy and new visions” to the company. They mainly high-
lighted the suggestion of new tools, different communication strategies, and user
perspectives. According to the testimony of one of the participants, “the students
have a different mindset than ours, this makes us see things from another angle”.
This evidence reinforces our argument that the ecosystemic approach (different
perspectives of the actors) allows experiences capable of developing values-based
innovation competences. In addition, this approximation between the actors is con-
nected with the zone of proximal development defended by the activity theory
(Engestrom, 2010).
Another feedback received was that, due to the proximity to the university, they
were able to learn unknown management concepts. It is worth mentioning the
increase in the operational capacity that the project also brought to the company,
as can be seen in an interviewee’s speech: “they gave us arms to do something (for
example, developing communication strategies) that we would not be able to do
alone”. The main perceptions of suppliers’ benefits are related to the company’s
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care for its partners and also to the importance of the external perspective for the
improvement of the business. “We are going through a very critical moment and
the participants showed us some things in our company that we were not see-
ing”, pointed out a supplier in his video. Another entrepreneur emphasised the
creativity and ideas brought by the students: “they brought alternatives that we
had not thought of before”. In addition, this approximation between actors is con-
nected with the zone of proximal development defended by the activity theory
(Engestrom, 2010).
The integrative function of shared values may provide common ground among
different stakeholders and interests within and outside an organisation (Kotter and
Heskett, 2011). We realised that the actors—university, students, company employ-
ees and its suppliers—were sharing the same values. Also, innovation, sustain-
ability and enchantment/positive impact on the community/stakeholders became
requirements for the solutions that were developed.
The director testified that the project showed that only with the collective con-
structions—approximation between different actors—can the company achieve
and share its values. “We feel that there is no better training in leadership than
being a mentor in practice”, said the analyst member of the organising commit-
tee. It was also possible to realise that the project will continue to assist the com-
pany even after its completion, as can be seen in the speech of the Supply Chain
Management area manager: “the diagnostic instrument developed will serve to
assist all of our suppliers”. The continuity of the project in the company shows the
project’s achievement in a values-based network. Accordingly, normative innova-
tion may result from the introduction of new values into an organisation or network
of actors within a business ecosystem (Breuer and Lüdeke-Freund, 2015).
Regarding the development of values-based innovation competence in stu-
dents, the coordinators of the UNISINOS University course said that it has been
achieved. “We assessed that as an impact of the project we had the development of
individual innovation competence we were looking for in the students”, defended
the academic. The Administration course coordinators stated that the project rep-
resents the possibility of promoting a more comprehensive training for students,
preparing them for real challenges. In the same vein, the other coordinator added:
“We realized that activities like this help to develop competences that we cannot
achieve only in the classroom”. This benefit is confirmed with the testimony of one
of the students’ teachers: “their experiences with the project were brought to the
classroom and helped to exemplify the contents”. Another point raised was that the
project represented a possibility for our students to have practical experience in a
pandemic context. We also highlight that different values and priorities apply when
facing real problems, and even similar values (e.g., related to innovation) assume
a quite different meaning that can only be experienced in practice. For example,
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some practices that were considered innovative for suppliers—such as digital com-
munication strategies, were not considered innovative for the Alpha company.
As observant participants, we noticed that the designed activity system devel-
oped students’ values-based innovation competences. From the joint action with
Alpha employees and suppliers and the search for external references, we per-
ceived the evidence of the networking competence. In the sequence, we identified
that the students analysed and evaluated the data and scenarios with the diagnosis,
thus evidencing the critical thinking competence. With these analyses, students
had to mobilise their colleagues in the construction of possible solutions, which

showed the development of the initiative and creativity competences. On the other
hand, acting in small groups to implement the solution and reflect on the results
confirmed the development of teamwork competence. However, we realised that in

addition to the development of the outlined competences, students developed other
competences. Moreover, we have identified a hierarchical relationship between
them, as we will explore in the reflection of this stage.
Reflection: We confirmed the difficulty of measuring individual innovation com-
petences pointed out by the literature (Marin-Garcia et al., 2018). However, we
were able to perceive their development from the deliveries, interactions and self-
perceptions—especially because we triangulated the perceptions from different
points of view. Thus, the measurement of the competences development was based
on the perceptions of the participants, and no prior and posterior instrument was
used to measure this development. From this, we realised that the main trigger
for this step was the generation of normative values-based innovation—the values
network formation. “The project is based on collaboration”, pointed out one of the
directors of Alpha. From that, we identified that a values network has been devel-
oped for the company’s ecosystem.
In addition to confirming this context, the Supply Challenge Project enabled the
development of individual innovation competences, pointed out by the innovation
pedagogy. During the Results Analysis stage, we highlighted the development of
other competences, considered fundamental in the formation process of a com-
pany. Alpha’s values network is directly involved with the ecosystem. A categori-
sation of the evidence provided the discovery of three essential competences for
the development of values-based innovation: forecasting, sensemaking and orches-
tration. It is worth mentioning that one of them acts as a meta-competence, that is,
guaranteeing the development of the other essential competences in ecosystemic
environments.
The first identified competence was sensemaking. This competence is linked
to the capacity through which someone acquires, interprets and acts on informa-
tion about their environment (Weick, 1995). Therefore, we realised that from an
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ecosystemic performance, in which one interacts with different actors, individuals

must realise the joint purpose. Thus, sensemaking is based on the interplay of
meaning and action (Weick et al., 2005). This competence has become essential
so that students can feel the collective demands, act with a common purpose and
create or share the values of Alpha for the ecosystem.
We realised that after approaching different actors, it was important that the
group identified, appropriated and built a common meaning for its performance.
This competence could be evidenced at the moment when the students connected
with Alpha employees and realised the meaning of the proposed challenge. It is
possible to confirm this perception from the following statements: “We perceived
the opportunity to help one of the leading companies in Brazil”; “With the first
exchanges, I understood and connected with the purpose of the project”; “Even
though we are people with different perspectives and goals, we came together for
the cause of the project [...] it felt like we had been working together for years”.
Therefore, we defended the sensemaking competence as essential for the construc-
tion of a values network.
The second competence identified from project observation and participant
testimonials was forecasting. Forecasting competence is related to the ability of
individuals to predict and identify future opportunities. This competence was usu-
ally associated with the organisational level since forecasts are an essential part
of any economic entity’s planning process (Makridakis and Wheelwright, 1989).
The conceptualisation of forecasting management as competence can be viewed
through the lens of the resource-based view (RBV) of the firm, with the forecast-
ing competence as a resource that is valuable, not widely held, and hard to imitate
or substitute (Barney, 1991). However, we understand that it is the ability to trace
antecedents and consequences (Makadok and Walker, 2000), that is, fully adapt-
able to the level of the individual.
The evidence of the development of this competence is related to a for-
ward-thinking behaviour and projection of the next steps. In the Supply Challenge
Project, we realised that from the final reflections of the solutions implemented
and the presentations at the last meeting, the students demonstrated the develop-
ment of this competence. The students brought historical analyses and suggestions
for future developments, essential behaviours for the sustainable construction of a
values network. In addition, we noticed other statements from the participants that
contribute to our understanding, such as: “We analyzed what went right and wrong
in our proposal and we are happy that they will implement our new ideas”. An
employee from Alpha also added: “I was impressed with the students’ projection
capacity; the ideas [about employee engagement strategies and about financial
management] are all noted down”.
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In addition to the two competences previously presented, we have identified a

goal competence capable of assisting in the development of all the others: orches-
tration. It is understood that managing and guaranteeing any process of innova-
tion is a multifaceted and complex task (Pikkarainen et al., 2017), even more
in environments where there is a great number and diversity of actors (Reypens
et al., 2019). Facing that, the capacity of orchestration arises to guarantee inputs,
minimise conflicts within the network, encourage the existence of equity and sta-
bility of a network and generate more innovation (Dhanaraj and Parkhe, 2006).
Orchestration is defined as a set of activities oriented to the development, man-

agement and coordination of actors that are destined to create and extract values
from the network (Dhanaraj and Parkhe, 2006). Such capacity respects the specific
identities of each one involved and tries to guarantee that they keep collaborating
fruitfully (Parmentier and Mangematin, 2014) generating innovations for them-
selves and the network, without the benefit of hierarchical authority (Dhanaraj and
Parkhe, 2006). Ritala et al. (2009) already pointed out this individual competence
as essential for ecosystem action.
We understood that for the creation of a values network, it was necessary to
have not only the competence to articulate the different actors, but it was necessary
to orchestrate them. The orchestration is evidenced as the actors are involved and
perceive benefits in acting in the ecosystem, that is, a “collaboration relationship
was perceived by the director of Alpha. Orchestration competence is related to the
mobilisation of knowledge, appropriability of innovation, and network stability
(Dhanaraj and Parkhe, 2006). It was possible to evidence the development of this
competence from the students’ statements: “Without articulation with the company
and its suppliers, we would not be able to have as much exchange of knowledge
and experience as we did ”; “We developed a very good bond and partnership
during the project based on the exchange of contacts and knowledge”; and “involv-
ing different people in the process is a challenge, but we managed ”.
In this step, we reflected and identified new competences that are essential for
the development of values-based innovation. In Table 9, we have a summary of
this reflection.
Table 9. Summary of the reflection of Step 5: Results analysis.

Generation of Discussion about the results Development The identification of new
values-based Interviews and of individual essential competences
innovation questionnaires with the values-based for the development of
participants innovation values-based innovation:
Result analysis competences orchestration, sensemaking
and forecasting.
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Thus, we noticed that we had created a values-based innovation competence

model (VBIC).
VBIC Model Proposition
While we were developing this action research, it was possible to highlight some
important findings for the advancement of the competences literature to val-
ues-based innovation, based on the innovation pedagogy (Konst and Kairisto-
Mertanen, 2019) and activity theory (Engestrom, 1987, 2010). From research, we
found that the development of values-based innovation competences depends on a
proposal that involves different actors from the ecosystem aligned with common
values. That is, the existence of shared values is necessary and serves as a driving
force for proposing projects like this. From these values, it is possible to bring
actors together, at the same time that the synergy between these actors is essential
for the construction of values-based innovation at the normative level. The values
guided the project and the competences developed throughout the action research.
Although the theme of innovation competence has been gaining emphasis in the
last years, the discussion about the development of methodologies is still recent
(Hero et al., 2017; Lappalainen, 2018; Marin-Garcia et al., 2018). Thus, we under-
stand that we brought contributions using the fundamentals of innovation ped-
agogy and activity theory (Engestrom, 1987, 2010), an approach that is still in
the process of consolidation as we present the competences development process,
proposing a Values-Based Innovation Competence Model (VBIC). The focus of
the project was on the development of the values-based innovation competences
in students based on the company’s values. We did this by proposing a system of
activities to solve a real problem.
We started from Alpha values (enchantment, innovation and sustainability for
the generation of shared value to the ecosystem); in the sequence, we mapped the
ecosystem and identified a real problem to be solved (management support to sup-
pliers); from that, we focused on building a system of activities that developed the
competences previously established by the literature (initiative, creativity, critical
thinking, teamwork and networking). For the construction of the activities system,
we sought theoretical support in values-based innovation (Breuer and Lüdeke-
Freund, 2017), in the innovation pedagogy (Konst and Kairisto-Mertanen, 2019)
and the activity theory (Engeström, 2010).
Based on the relationship between the requirements of the values-based per-
spective (Enkel et al., 2011) and the theory of activity (Engeström, 2010) with the
individual innovation competence (Konst and Kairisto-Mertanen, 2019) and the
identification of leverage factors for their developments, we developed a system
of activities to solve the identified problem. We built twelve activities that aimed
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to develop students’ values-based innovation competences. We realised that there

are different triggers for each stage of the project and therefore, for competences.
These triggers cause different impacts on the network and are directly related to
the competence to be developed. We reinforce that while we have identified a core
competency for each stage, we realise that all competences are needed at the dif-
ferent stages.
Each activity performed begins with a zone of proximal development in which
an individual collaborates with another to develop based on an action mediated
by peers (for example, Alpha employees and students). With action provided, it
is possible to perceive agency—when the subjects become authors of their activ-
ities and give direction and form to the activities, leading to expansive learning.
In expansive learning, there is a group of people together creating, training and

developing collaboratively (Engeström, 1987, 2010). It is an ecosystem approach
to development.
The expansive cycle begins with individual subjects questioning the accepted
practice, and it gradually expands into a collective movement or institution.
Ascending from the abstract to the concrete is achieved through specific epis-
temic or learning actions. Together these actions form an expansive cycle or spiral.
We realise that the same occurs when we work with values, which when faced with
real problems take on a different meaning that can only be experienced in practice.
The sum of the individual knowledge contributes to the creation of new knowl-
edge, going beyond the competences and knowledge of those individuals who took
part in the collaborative problem-solving activities (Francisco and Klein, 2020).
From the implementation of the project, we were able to validate the activity
system designed once we confirmed the creation of a network of values in the
ecosystem, the resolution of the real problem and the development of individual
competences. However, we realised that in addition to the competences established
by the innovation competence literature (Konst and Kairisto-Mertanen, 2019), the
values-based innovation competences encompassed three more competences: sen-
semaking, forecasting and orchestration. The first is related to the search for mean-
ing after the approximation between the actors and the second reflects the ability
to analyse what has been accomplished and to project future actions. As for the
third competence, we refer to it as a goal competence since it is essential for the
development of others. It is the ability to articulate the actors for the construction
of a values network.
In addition to the identification of new competences, we perceived a hierarchi-
cal relationship between the values-based innovation competences. We understood
that the first competence to be developed is that of networking since it seeks to
bring together different actors for joint action. In the sequence, it becomes neces-
sary the ability to identify and build collective sense, the sensemaking competence.
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From it, it is possible to analyse and evaluate the context with the competence
of critical thinking. With the identification of the scenario and the possibilities,
it is time to act and mobilise the groups—this is the initiative competence. This
competence is related to the creation of solutions; is evidence of creativity. To
implement the ideas raised, it is necessary to act collaboratively, thus, requiring
the competence of teamwork. To endure the values network and ensure the future
projection of the ecosystem, forecasting competence is required. Finally, we real-
ised that to articulate the actors and all these actions, it is necessary to develop the
orchestration competence. Table 10 shows the main elements that supported the
construction of our model.
Based on these findings and especially on the last reflection process of the
research, our experience allowed us to create a model capable of developing val-

ues-based innovation competences among students through an ecosystem approach.
Table 10. Main elements that supported the construction of the model.
Competences Values-based Actions provided Principles Trigger for the development

perspective of activity of values-based innovation
requirements theory competences
Orchestration Networking Share knowledge Kick-off and To question Approximation and

contextualisation alignment between actors
Sensemaking Identify potential Problem ownership Common purpose
partners for construction
collaboration
Critical Recognise Elaboration of the To analyse Research and context
Thinking opportunities diagnosis analysis
Diagnostic delivery
and adjustment
Diagnostic
application
Initiative Identify Analysis of Model a Joint solution construction
complementarities diagnostic results solution
Company feedback
Creativity Formulation of the Examine and
solution for the test a new
company model
Team work Start and conduct Application of the Implement Collaborative performance
a collaborative solution at the new model in the ecosystem
project company
Validation of the
solution at the
company
Forecasting Communicate needs Discussion of results Reflect on Reflection and projection of
the process new actions
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The VBIC model is the result of our experience based on the innovation pedagogy
(Konst and Kairisto-Mertanen, 2019) and activity theory (Engestrom, 1987, 2010).
The VBIC model these researchers’ effort to try and generalise the research find-
ings, giving other actors and ecosystems opportunities with other valuable propos-
als; the design of a set of activities that will make students more capable. Figure 2
shows the VBIC model.
Fig. 2. VBIC model.

By the authors
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In the proposed model, we defended that the starting point is values definition, with
which it is possible to map the actors of the ecosystem and identify a real problem to
be solved. Thus, the values-based perspective requires people to know how to share
knowledge, recognise opportunities, identify potential partners for collaboration and
how to start and conduct a collaborative project, recognise complementarities and
communicate needs (Enkel et al., 2011). We highlight three reasons to explain why
the definition of values is the starting point of the model presented. The first is the
role of values in aligning the actors of the ecosystem that will participate in the proj-
ect. We understand that the sharing of values by the actors is a critical factor for the
success of the model. The second reason is the influence of values in the selection
and definition of the real problem to be solved. The chosen problem must converge
with the values, otherwise, the development of the project and the competences is
compromised. The third reason is related to the construction of the activity system.
We identified that the values play the role of a “check list” since they are responsible
for guiding the actions and projects to be developed. We presented the process of
developing innovation competences and identified the prerequisites and triggering
factors necessary for activities to develop each competence. Although the actions can
be changed according to the context, the experience must provide the zone of proxi-
mal development (ZPD) among the actors, allowing the action to make the individual
the author of the activity and expand its learning with group exchanges.
We emphasise that it is a temporal model, that is, the order of activities impacts
the development of individual competences. We argue that there is a hierarchy and
interdependence between the values-based innovation competences. Therefore, in
the “T0” we start with activities that promote the development of networking com-
petence. From this, it is possible to develop sensemaking competence and so on.
We defend that the goal of orchestration competence is developed as it develops
the others, thus generating an idiosyncratic relationship in its development.
Generally, we realised that the VBIC model is about a process in which the
activities and real problems may be adapted according to the ecosystem context.
Nevertheless, we presented values-based requisites, triggering factors and a cycle
of expansive learning that develop the values-based innovation competences in
students. During the Supply Challenge Project, we experienced the VBIC model
on the project construction (as the organising committee) and in its operation (with
the students, collaborators and suppliers). With that, we believe that the model may
be applied to other universities.
Conclusions
This paper aimed to understand how competences are developed for values-based
innovation. To achieve this, we conducted an action research project based on
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values involving the university, students, one of the largest Brazilian companies
and its suppliers. We present the process of developing competences and create a
values-based innovation competences development model (VBIC). Our model is
based on innovation pedagogy (Konst and Kairisto-Mertanen, 2019) and activity
theory (Engestrom, 1987, 2010) through an ecosystemic perspective.
The Values-Based Innovation Competence Model (VBIC) seeks to contribute
to universities that practice innovation pedagogy and are willing to develop their
students to become more competent for driving and facilitating values-based inno-
vation at the normative level. With this model, we found that (a) the values have
the role of aligning the actors and guiding the actions; (b) there is a process com-
posed of a system of activities based on pre-requisites in the values-based perspec-
tive and triggering factors to develop each competence; (c) for each activity, the
student must experience an expansive learning cycle in which one gets closer to
other actors and becomes the author of the activity—which reinforces the need for
an ecosystemic action; (d) to share values with the network (as the basis for col-
laboration). Three other competences are required in addition to those previously
established in the literature: sensemaking, forecasting and the meta-competence of
orchestration; (e) the development of values-based innovation competences occurs
over time, so there is a hierarchy of competences, starting with the one for net-
working and ending with forecasting.
As a theoretical contribution, we developed a model of competence develop-
ment that connects different theoretical lenses based on empirically grounded
insights. As such, we have managed to fill several gaps in the literature. We
answered questions related to preparing people to work in values-based innova-
tion in the normative dimension (Breuer and Lüdeke-Freund, 2017; Breuer et al.,
2021). We also presented a proposition for the dilemma of the process of com-
petences development (Konst and Kairisto-Mertanen, 2019). We have identified
three more innovation competences and their relationships (Marin-Garcia et al.,
2016; Perez-Penalver et al., 2018). In addition, we extrapolated learning activities
and experiences and connected them with leverage factors for the development of
certain competences (Engestrom, 1987, 2010).
As managerial contributions, we believe that we can assist universities in the
development of values-based innovation competences for their students. The
generic model created can be adapted according to the context and the problem,
and we can also help managers with the identification of projects that create and
share values on the network. Thus, the results of this paper contribute both to a
discussion about the development of individual competences, as well as to the con-
struction of projects in an ecosystemic logic. Finally, we also aimed to assist public
managers or ecosystem representatives in understanding critical factors that bring
their different actors together. The paper also brings social implications since it
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proposes to help in the formation of professionals with values-based competences

and in the articulation of different actors to solve problems.
As a limitation of this study, we understood that the actions of the project
exclusively in the remote format (due to the pandemic) may have restricted or
changed the development of some values-based innovation competences. We also
highlighted the limitations of the research method conducted—action research—
which, because it considers a specific reality, does not allow for generalisations.
Thus, new studies using comparative cases or surveys are suggested to review and
consolidate our preliminary model. Also, the use of instruments for measuring
before and after the individual innovation competences of the students could have
facilitated the understanding of their development throughout the project. Besides,
it was not the goal of this paper to evaluate the development of competences in the
company’s employees or other actors involved in the project, although we have
observed evidence of the competences development on them. Concerning future
studies, we suggest an analysis with different actors and in-depth multilevel anal-
ysis (individual, organisational and ecosystemic) of the values-based innovation
competences. Furthermore, it would also be interesting to have studies that explore
these strategic and operational dimensions of innovation management. We also
suggest the application of the VBIC Model in other contexts of the ecosystem,
such as at the city level, and the construction of quantitative models to assess the
competences raised by this study.
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Faccin Et Al 2022 Developing Values Based Innovation Competences An Ecosystemic Approach

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WSPC/150-IJIM 2240005 ISSN: 1363-9196FA

International Journal of Innovation Management

DEVELOPING VALUES-BASED INNOVATION COMPETENCES:

KADÍGIA FACCIN*, BRUNO ANICET BITTENCOURT† and LISIANE MACHADO‡

Porto Alegre, Brasil

Published 25 June 2022

Keywords: Values-based innovation; individual innovation competences; ecosystem;

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K. Faccin, B. A. Bittencourt & L. Machado

This values-based perspective can serve as a means to overcome contextual—and

2240005.indd 2 24-Sep-22 12:21:39 PM

Developing Values-Based Innovation Competences: An Ecosystemic Approach

Therefore, we have identified the following gap/question in the theoret-

Is Values-Based Innovation linked to an

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K. Faccin, B. A. Bittencourt & L. Machado

In this context, values-based innovation can motivate the development of new

evaluations, providing heuristic and integrative functions for normative, strategic

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Developing Values-Based Innovation Competences: An Ecosystemic Approach

the approach to innovation ecosystems emerges as a lens through which we can

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K. Faccin, B. A. Bittencourt & L. Machado

Activity Theory and Innovation Pedagogy for Values-Based

There is a need for future professionals to be capable of participating in innovation

have to consider learning for innovation and the development of an innovation

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Developing Values-Based Innovation Competences: An Ecosystemic Approach

innovation competences expected in all working life environments, in addition

and Assessment (https://www.fincoda.eu/), funded by the European Union to

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K. Faccin, B. A. Bittencourt & L. Machado

the very subject of learning is transformed from an isolated individual to collec-

Faced with the challenge of developing competences for values-based innovation,

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Developing Values-Based Innovation Competences: An Ecosystemic Approach

Fig. 1. Action research organisation.

Action research proposal

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K. Faccin, B. A. Bittencourt & L. Machado

values-based innovation are under debate at the university—especially leveraged

Action research design

The Supply Challenge Project arose as a project in which undergraduate students

Ecosystem actors Number of people involved

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Developing Values-Based Innovation Competences: An Ecosystemic Approach

innovation, in which the dedicated pursuit of a vision or mission defining overar-

Action research analysis

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K. Faccin, B. A. Bittencourt & L. Machado

Step 1 Step 2 Step 3 Step 4 Step 5

meetings and project and project testimonials

Analysis Based on Action Research: The Supply Challenge Project

Iterative Step 1: Identification of values and alignment of objectives

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Developing Values-Based Innovation Competences: An Ecosystemic Approach

Planning: We identified the opportunity to develop a project capable of develop-

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K. Faccin, B. A. Bittencourt & L. Machado

Prerequisite/trigger Employed action Generated impact Reflection

developing individual values-based innovation competences becomes essential for

Iterative Step 2: Mapping of actors and identification of real problems

WSPC/150-IJIM 2240005 ISSN: 1363-9196FA