When are entrepreneurs more environmentally oriented? An analysis of stakeholders' pressures at different stages of evolution of the venture

Abstract

Entrepreneurs are subjected to increased institutional pressures that encourage them to include environmental issues in their overall business objectives. Despite this, entrepreneurs do not always place the same importance on environmental issues in the overall objectives, but some are more environmentally oriented than others. We contend that these differences are explained by two factors: the stage of evolution of the venture and the intensity of coercive and normative environmental pressures on entrepreneurs. Using a sample of 9781 entrepreneurs from 27 countries, our research shows that entrepreneurs are more environmentally oriented (1) in early stages of evolution, (2) in countries with high coercive pressures, and (3) in countries with high normative pressures. Additionally, our results indicate that the differences in the environmental orientation in the early and late stages are reduced in countries with high normative pressures and that these differences are not influenced by the intensity of coercive pressures.

The effect of corporate governance on corporate environmental sustainability: A multilevel review and research agenda

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Green relational capital, integration capabilities and environmental innovation adoption: The moderating role of normative pressures

“…Normative influences can produce standards, ensuring appropriate behaviors on the part of members in a group (Bernal et al, 2022;Scott, 2005). Unlike explicit regulatory standards, these norms are usually implicit.…”

“…Specifically, normative agents—for example, professional non‐governmental organizations (NGOs)—are influential actors considering institutional pressures (Berrone et al, 2013; Kassinis & Vafeas, 2006). Normative influences can produce standards, ensuring appropriate behaviors on the part of members in a group (Bernal et al, 2022; Scott, 2005). Unlike explicit regulatory standards, these norms are usually implicit.…”

Sustainability orientation and firm growth as ventures mature

“…Sustainable entrepreneurs often face the challenge of double externality (Horbach et al, 2012; Mothe et al, 2018; Rennings, 2000) and struggle to capture and appropriate the value from the goods and services they provide. They also carry the burden of the liability of smallness , the liability of newness in the marketplace (Adomako et al, 2019; Stinchcombe, 2000), and confront multiple institutional obstacles (Amorós et al, 2019; Bernal et al, 2022; Danso et al, 2019; Esposito et al, 2022). As a result, adopting a sustainability orientation in entrepreneurial ventures is considered costly, risky, and taxing on the ability of the firm to survive in the market, reach profitability, and grow (Fernández‐López et al, 2022).…”