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How do small businesses pursue sustainability? The role of collective agency for integrating planned and emergent strategy making

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  • Christopher Luederitz
  • Guido Caniglia
  • Barry Colbert
  • Sarah Burch

Abstract

Research on sustainability strategy in large corporations has shown that carefully planned strategies can address environmental and social concerns. However, we still lack clarity on how small businesses form sustainability strategies. Assuming that small businesses can—or should—carefully plan strategies is inappropriate considering that such organizations often lack the needed resources, foresight, and formalized decision‐making structures. Building on the study of two craft breweries in Canada and Germany, we detail how a combination of planned and emergent actions enables owners, employees, and external stakeholders to jointly form strategic sustainability orientation. Developing these findings into an integrated activity‐based model, we show the need to move beyond the dichotomy between planned and emergent strategizing. We contribute a human‐centered perspective to the sustainability strategy literature and suggest that research should take the role of people in small businesses more seriously as here interpersonal relationships and collective agency are central in forming strategic sustainability orientation.

Suggested Citation

  • Christopher Luederitz & Guido Caniglia & Barry Colbert & Sarah Burch, 2021. "How do small businesses pursue sustainability? The role of collective agency for integrating planned and emergent strategy making," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3376-3393, November.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:7:p:3376-3393
    DOI: 10.1002/bse.2808
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    2. Linda Westman & Christopher Luederitz & Aravind Kundurpi & Alexander Julian Mercado & Sarah Lynn Burch, 2023. "Market transformations as collaborative change: Institutional co‐evolution through small business entrepreneurship," Business Strategy and the Environment, Wiley Blackwell, vol. 32(2), pages 936-957, February.

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