Work

The sustainable start‐up paradox: Predicting the business and climate performance of start‐ups

Year: 2020

Type: article

Abstract: Sustainable start‐ups introduce new sustainable technologies and business models that facilitate the transition to a carbon neutral economy. To understand how to create viable sustainable start‐ups, we study what factors predict their business performance and climate performance (i.e., the ability of the start‐up to reduce CO 2 equivalent [CO 2 e] emissions) and if these contradict. A critical factor we consider is technology, which is commonly at the root of climate performance, and important for business performance because it influences a start‐up's competitive advantage. Using a sample of 197 sustainable start‐ups, we find a paradox between business and potential climate performance. Start‐ups that exploit hardware technologies have a lower business performance but a higher potential climate performance. Through the use of mediating effects, we show that the sustainable start‐up paradox is context specific. Start‐ups can partly escape this paradox by focusing on novel and hardware technologies. We discuss implications for theory and practice.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.2667

Authors: Jip Leendertse, Frank J. van Rijnsoever, Chris P. Eveleens

Institutions: Utrecht University, Instituto de Gestión de la Innovación y del Conocimiento, Universitat Politècnica de València

Language: English

Topic: Environmental Sustainability in Business

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure, Responsible consumption and production

Open Access status: hybrid

Estimated APC paid: $3,300