Institutionalizing Sustainability Through Management Innovation: Transformative Collaborative Learning in a Community-Based Service Ecosystem

This study analyzes transformative collaborative learning as a management innovation in a community-based service ecosystem in Phrom Kiri, Thailand. Leveraging Transformative Learning Theory and Service-Dominant Logic, the study employs qualitative participatory methods (i.e., multi-stakeholder workshops, focus groups, and field observations) to document the dynamic processes through which learning, interactions, and institutional changes evolve. These findings demonstrate how collectively informed strategies for sustainability challenges engendered collective learning processes that led to an alteration of actors’ assumptions, mobilization of shared understanding, and facilitated new governance practices driven by multi-dimensional value drives in response to accumulating disconnects. These reflect the rise of participatory governance mechanisms, the intermediation between actors to create synergies, and the anchoring of institutional frameworks into local contexts to allow for value generation both in economic terms and social ones. Our case study shows that transformative learning can be more than just a cognitive change, also enabling community-level management innovations. It finds that sustainable development of local service ecosystems relies on the formation, institutionalization, and promotion of collaborative practices that facilitate the alignment of stakeholders’ interests and competencies. By conceptualizing transformative collaborative learning as a key mechanism to understand how management innovation and value co-creation unfold in community-based development, this research advances sustainability and management literature.