In an increasingly dynamic and uncertain business environment, innovation has emerged as a central driver of strategic effectiveness and long-term sustainability. This study examines how innovation can be systematically integrated into strategic management to support sustainable business transformation. Adopting a conceptual and theoretical research design, the paper synthesizes contemporary literature on innovation, strategic management, and sustainability to develop an integrative framework of Innovative Strategic Management (ISM). The analysis draws upon Dynamic Capabilities Theory, the Resource-Based View, and Sustainability-Oriented Strategic Management to identify three core dimensions of ISM: proactive environmental scanning, innovation-driven value creation, and sustainability-oriented decision-making. The findings suggest that embedding innovation within strategic management processes enhances organizational adaptability, strengthens stakeholder trust, and enables firms to achieve sustainable competitive advantage. This study contributes to the strategic management literature by positioning innovation and sustainability as interdependent strategic capabilities and provides a conceptual foundation for future empirical research on sustainable business transformation.
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