Making Sense of Ecopreneurs' Decisions to Sell Up

Abstract

This article examines the phenomenon of values-based firms being sold to larger mainstream firms. Its focus is on the sensemaking rationale offered by a New Zealand ecopreneur who sold an organic beverage company after twenty years at the helm. The company case study is presented through two enterprise development narratives based on alternative sensemaking modes. Key values-related challenges arising in ecopreneurial business are identified including: 1) adhering to the founder"s values; 2) growing the business sustainably; 3) deciding whether and when to expand ownership to cope with undercapitalisation; 4) deciding who to bring in as new owners to ensure values alignment; 5) determining how and when the founder might leave; and 6) ensuring the attractiveness of the sustainability values so that they might be retained. Other factors implicated in the sale of values-based firms are also postulated. It is argued that although ecopreneurs might be accused of selling out their principles by selling up, there is some evidence that eco-brands are being maintained and growth prospects could be improved after acquisition. Serial ecopreneurship may even extend social benefits.

Diversified Farming Systems: An Agroecological, Systems-based Alternative to Modern Industrial Agriculture

“…Alternative producers sometimes justify this by arguing that large-scale, industrialized methods are the fastest way to "scale up" alternative farming practices so that they can compete in supply chains with conventionally managed systems (Box 4). In search of new markets, many dominant food corporations have purchased and integrated successful organic producers and alternative food companies into their product portfolios (Kearins and Collins 2012). This trend of purchasing "sustainable" product businesses is also observed in other sectors, such as personal care, paper, and cleaning chemicals.…”

Environmental Leadership and Consciousness Development: A Case Study Among Canadian SMEs

“…These include companies considered as international models of sustainability such as Patagonia, Body Shop, and Interface (Kearins and Collins 2012;Fowler and Hope 2007;Stubbs and Cocklin 2008). Whatever the organization's size and environmental commitment, the top managers' leadership clearly plays a key role in corporate greening (Kearins and Collins 2012;Egri and Herman 2000).…”

“…The successful implementation of environmental practices (i.e., the implementation of a sustainability policy, pollution prevention actions, promotion of industrial ecology, training programs, etc.) presupposes an active commitment from top managers (Kearins and Collins 2012;Revell and Blackburn 2007;Revell et al 2010). Second, studies on the motivations behind environmental leadership and corporate greening have shown the importance of the search for social legitimacy and response to stakeholder expectations.…”

“…The focus on success stories in corporate greening has also contributed to exemplifying environmental leaders, considered as models to be emulated by other managers (Stubbs and Cocklin 2008;Kearins and Collins 2012;Fowler and Hope 2007). Nevertheless, most top managers can hardly be considered environmental leaders, especially in SMEs where sustainability issues are rarely seen as a priority (Revell and Blackburn 2007;Revell et al 2010).…”

“Buying” Corporate Social Responsibility: Organisational Identity Orientation as a Determinant of Practice Adoption

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