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How Business Idea Fit Affects Sustainability and Creates Opportunities for Value Co-Creation in Nascent Firms

Author

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  • Gian Luca Casali

    (School of Management, Queensland University of Technology, Brisbane City QLD 4000, Australia)

  • Mirko Perano

    (Department of Management, Reald University College, Vlorë 9400, Albania)

  • Andrea Moretta Tartaglione

    (Department of Economics and Law, University of Cassino and Southern Lazio, Cassino FR 03043, Italy)

  • Roxanne Zolin

    (Australian Institute of Business, Adelaide SA 5000, Australia)

Abstract

A well-defined business idea is essential for nascent business sustainability in the future. The business idea must fit firm knowledge and resources to a profitable business opportunity. This work adopts the framework of value co-creation, strongly related to the service-dominant logic paradigm. We ask how does business idea fit affect new venture sustainability and create opportunities for value co-creation. We propose that a business idea that lacks fit is less sustainable, but it could create opportunities for value co-creation. This study develops and validates an empirically grounded taxonomy of business idea fit based on 729 Australian nascent firms using quantitative data generated from the results of a large study called CAUSEE (Comprehensive Australian Study of Entrepreneurial Emergence). A cluster analysis is used to identify distinct patterns of business idea fit. The empirical taxonomy developed in this study found four distinct clusters of firms, which were distinguished by the fit of their new business idea to knowledge, resources and market profitability: very good fit, low knowledge fit, low profit fit and low fit. Results show how these different patterns of fit create opportunities for value co-creation to create business future sustainability.

Suggested Citation

  • Gian Luca Casali & Mirko Perano & Andrea Moretta Tartaglione & Roxanne Zolin, 2018. "How Business Idea Fit Affects Sustainability and Creates Opportunities for Value Co-Creation in Nascent Firms," Sustainability, MDPI, vol. 10(1), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:1:p:189-:d:126884
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    References listed on IDEAS

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    Cited by:

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    2. Daniela Rupo & Mirko Perano & Giovanna Centorrino & Alfonso Vargas-Sanchez, 2018. "A Framework Based on Sustainability, Open Innovation, and Value Cocreation Paradigms—A Case in an Italian Maritime Cluster," Sustainability, MDPI, vol. 10(3), pages 1-28, March.
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    6. Aleksandra Kozłowska-Woszczycka & Katarzyna Pactwa, 2022. "Social License for Closure—A Participatory Approach to the Management of the Mine Closure Process," Sustainability, MDPI, vol. 14(11), pages 1-26, May.
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    8. Natalia Rubio & Nieves Villaseñor & MªJesús Yagüe, 2020. "Sustainable Co-Creation Behavior in a Virtual Community: Antecedents and Moderating Effect of Participant’s Perception of Own Expertise," Sustainability, MDPI, vol. 12(19), pages 1-19, October.
    9. Dhirendra Prajapati & Fuli Zhou & Ashish Dwivedi & Tripti Singh & Lakshay Lakshay & Saurabh Pratap, 2022. "Sustainable Agro-Food Supply Chain in E-Commerce: Towards the Circular Economy," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
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