**3. Business intelligence, dynamic capabilities, and sustainable innovation**

Previous studies have reported that knowledge is a key lever for organizational learning, innovation, and developing a set of organizational capabilities, such as

dynamic capabilities [38]. For this reason, [39, 40] suggest integrating knowledge flows and organizational learning as a dimension of dynamic capabilities. According to this perspective, intelligence tools and techniques based on information collection, analysis, and dissemination contribute to knowledge generation [41] and the development of dynamic capabilities [42, 43].

The dynamic capabilities approach is now the dominant framework in strategic management for explaining the reconfiguration of resources and competencies through which organizations can respond to changes in their environment and innovate [44]. The dynamic capabilities consist of three categories, identifying and assessing opportunities (sensing), mobilizing resources to take advantage of the identified opportunity (seizing), and continuously reconfiguring resources (transforming) [45]. Dynamic capabilities can be defined as "the firm's ability to integrate, build, and reconfigure internal and external resources or competencies to address, and possibly shape, rapidly changing business environments" [46, 47]. This definition highlights the importance of reconfiguration of organizational resources that help managers to identify opportunities and threats then act quickly to adjust to frequent changes in the external environment.

A number of researchers consider the relationship between dynamic capabilities and technologies as a bidirectional relation. Indeed, on the one hand, and on the other hand, technologies including analytic tools contribute to developing dynamic capabilities, and the relevance of sensing and learning capabilities can be seen as a trigger of technologies capabilities [47]. In the era of advanced technologies that have invaded all organizations, many researchers consider information technologies capabilities, such as the expertise of staff in technical knowledge, the flexibility of the information technologies infrastructure, and the ability to manage information technologies one among dynamic capabilities dimensions [48]. In the same sense, [49] point out that the development of new technological capabilities helps managers to adapt quickly to the turbulence of the environment [50] suggests that information technologies grant organizations the capacity to transform and bring out new knowledge, which promotes the improvement of their dynamic capabilities. Indeed, to manage dynamic data and information, organizations necessitate having analytic capabilities and a governance plan to maximize value [51].

There have been several types of research reports that business intelligence and dynamic capabilities are significantly correlated in the area of business and management studies. Although most researchers in the field consider business intelligence a single capability, such as Big Data Analytics Capability [52], a tool of Big Data Decision-making [53], or a technique for enhancing Operational Research [37], it can be considered a trigger of dynamic capabilities [19]. Business intelligence plays an important role in creating knowledge and developing dynamics capabilities within firms. It improves the collection of relevant information on the needs of customers and external partners, which helps develop organizations' sensing capacity [40].

Previous studies highlight several advantages of dynamic capabilities within organizations [53] reports that the dynamic capabilities approach helps managers to create a competitive advantage. In the same vein, the dynamic capabilities strategy is asserted to be an encouraging approach to improving the understanding of critical innovation management for environmental sustainability [54]. Businesses should start to consider their fundamental actions in order to integrate, coordinate, build, and reconfigure their resources and competencies in the context of external sustainable development innovations [11]. Dynamic capabilities enable a company to align its resources and competencies with strategic environmental policies and the general

#### *Business Intelligence: An Important Tool to Develop Dynamic Capabilities and Sustainable… DOI: http://dx.doi.org/10.5772/intechopen.110200*

business environment. To look at it another way, a company's dynamic capabilities evaluate its capacity and willingness to implement these changes in its competencies and resources in order to participate in the transformation to a more sustainable industry [44, 55]. Thus, it highly suggests that dynamic capabilities be evaluated particularly for various tasks because there are numerous multiple kinds of dynamic capabilities for carrying out various tasks, ranging from new product development to post-acquisition incorporation (e.g., see [46]).

Giving to past studies, businesses are indeed successful in bringing new technologies and products for environmental protection to the industry when they establish and organize their innovation capability around sustainable solutions [56, 57]. The implementation of clean and energy-efficient technologies is dependent on businesses' opportunity to develop dynamic capabilities for this function. As a result, more studies on businesses' dynamic capabilities for environmentally responsible advancements have indeed required the kind of dynamic capabilities that should be developed to successfully overcome starting to emerge emerging issues [58]. Therefore, continued studies make the argument that, while much progress was made in understanding organizational capabilities, the reasoning behind these shared occurrences takes account of these constructs' micro-level, or "micro-foundations." A micro foundations method is concerned with unpacking dynamic capabilities in terms of fundamental different elements [50, 59]. Dynamic capabilities should always be described in terms of organizational structures and managerial ways of implementing business models. The managerial and organizational practices related to how things are done in businesses are also known as procedures or patterns of current practice and learning, [6, 60] characterizes micro foundations as "distinct skills, processes, procedures, organizational structures, decision rules, and disciplines" that serve as the overall organizational underpinning for resources and capabilities.

To attain sustainable growth, businesses are progressively considering the importance of the building and advancement of environmentally sustainable innovations [4, 61]. Sustainable innovation is considered an innovative and principal characteristic of business operations that confront the existing system in order to develop innovative products and processes that not only produce value-added economic performance but also advantage the environmental ecosystems [62]. For instance, immaculate technology solutions are indeed a type of environmentally sustainable innovation that aims to minimize dependence on renewable sources while also promoting environmental sustainability through the development of many more produces more power advanced technology [63]. Sustainable innovation as a business enabler allows businesses to implement sustainable development concerns regarding their techniques whereas strengthening their competitiveness [64]. Since a wide range of stakeholders is involved in the design process, incorporating environmental policies complicates businesses' innovation strategies. The sophistication of the innovation process influences everything from concept development to marketing practices [65]. According to [66, 67], this complexity is triggered by the robust and sophisticated innovation of operations and product higher-level technology and the ambiguity and variety of the technological and business domains in which businesses usually start competing.

This unpredictability complicates strategic directions, particularly one's innovation schemes and performance because this requires to face changes and be able to adapt the business's capabilities to its environment [15, 68]. Given to [69], environmental sustainability innovation regularly encompasses a departure from the existing body of knowledge and is therefore competence-destroying. Sustainable innovation frequently necessitates a disruptive technological transformation or a complete solution overhaul

**Figure 1.** *Research model.*

[70]. Also, [71] contends that environmentally sustainable innovation varieties from responsibility affect so otherwise to doing completely diverse things. As a result, mainstream, market-driven perspectives to advancement are insufficient for smartly improving and maintaining innovation for environmental sustainability [72, 73].

As we mentioned above, the digital transformation age represents a set of opportunities that should be sensed and seized. To do so, firms must reconfigure their technological resources and mobilize their organizational capabilities, including business intelligence [74, 75]. Indeed, business intelligence as a tool for collecting and analyzing information helps to identify opportunities, predict market trends, and helps to anticipate external changes by reconfiguring internal resources, particularly technological resources. In the same manner, [76] reports that to take advantage of emerging big data opportunities, firms must continually renew and reconfigure their technological resources. Based on the discussion above, we propose the research model below (**Figure 1**).
