Understanding the process and strategy formation of sustainability-oriented new venture creations : Comparative case study from the Finnish business environment
Year: 2022
Type: dissertation
Abstract: The last two centuries of industrial business endeavours have continued to negatively impact our environment and caused irreplaceable damage to the surrounding nature and society. Not only has this been driven by irresponsible actions by multinational corporations, but also by consumer megatrends, such as, fast fashion. As consumption levels continue to increase and reach new heights, the time is now to begin to recognize the harmful effects of our behaviour and look to improve our environmental and sustainable situation. For long traditional businesses placed little to no effort on sustainable and responsible actions. However, luckily enough the general consensus on sustainability has increased in popularity and changes in consumer behaviour have been able to shift the emphasis of even larger, more conservative industries. Adapting to the ‘new normal’ has been started to see as an advantage rather than a nuisance complicating business operations, as the general population have become more vocal of their demand of sustainable endeavours and products. As a result, more sustainability-focused companies have emerged as individuals have begun to take matters into their own hands; seeking financial gain while assisting collective environmental development. The purpose of this study is to investigate the process and strategy formation of sustainability-oriented new venture creations in the Finnish business landscape to further understand what underlying critical incidents, practice, and behaviours impact the process. The research is supported by presenting an extensive review of literature and definitions regarding sustainable entrepreneurship, strategy formation and business model development, new venture creation, and entrepreneurial processes. Also, the study was conducted as qualitative research. By conducting semi-structured interviews with established sustainable new ventures from different industries and by providing a comparative perspective on critical incidents and practices through multiple-case analysis, new insights are offered as theoretical contributions. The findings of the study highlight the complexity of the sustainability-oriented entrepreneurial process. With all possible internal and external forces influencing decision-making and practices, no one-size-fits-all solution exists, and the behaviour of the entrepreneur has significant effect on the strategic approaches of the sustainable venture. Still, even with vastly different business models in different industries, similarities in critical incidents were identified. The value of a team, proper market research and marketing, educating the public on the sustainability-oriented gap, and collaborative activities were emphasized from the empirical research. As for the theoretical contributions, various raised questions and suggestions are answered.
Source: Osuva (University of Vaasa)
Author: Rajala, Saku
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7053234876