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Drivers for Sustainable Business Models in Start-Ups: Multiple Case Studies

Author

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  • Cosmina Lelia Voinea

    (Faculty of Management, Science and Technology, Open University of the Netherlands, 6419 AT Heerlen, The Netherlands)

  • Marcel Logger

    (Faculty of Management, Science and Technology, Open University of the Netherlands, 6419 AT Heerlen, The Netherlands)

  • Fawad Rauf

    (Faculty of Management, Science and Technology, Open University of the Netherlands, 6419 AT Heerlen, The Netherlands)

  • Nadine Roijakkers

    (Faculty of Management, Science and Technology, Open University of the Netherlands, 6419 AT Heerlen, The Netherlands)

Abstract

Mechanisms that large organizations employ to facilitate corporate social responsibility (CSR) engagement simply do not apply to start-ups due to distinct differences. The purpose of this study was to gain insight into how start-ups strive for sustainability in their business models by investigating internal and external drivers related to organizational processes, managerial characteristics, and stakeholder expectations. We explored key factors such as decision-making regarding CSR engagement, business values about sustainability, entrepreneurial orientation, and the relevance of the CSR theater (philanthropic orientation, disruptive innovation, or transforming the ecosystem). Multiple case studies and interview data elucidated how start-ups engage with their community and stakeholders to determine the best approach to sustainability demands, how start-ups embed sustainability practices within their business models, and how these practices match with the entrepreneurs’ personalities. On the basis of our case studies and data analysis, we propose that the decision to engage in CSR is treated as an investment decision. The business values of a start-up determine its CSR engagement. The philanthropic drive of a start-up determines its CSR initiatives, which are then in line with the field the start-up is operating in. Entrepreneurs’ willingness to adopt CSR practices is determined by their personalities and organizational expertise and experiences. CSR engagement within the business models of start-ups is based on a combination of financial and social capital, while financial benefits act as a continuous motivator for CSR engagement from inception.

Suggested Citation

  • Cosmina Lelia Voinea & Marcel Logger & Fawad Rauf & Nadine Roijakkers, 2019. "Drivers for Sustainable Business Models in Start-Ups: Multiple Case Studies," Sustainability, MDPI, vol. 11(24), pages 1-25, December.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:24:p:6884-:d:293913
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    3. Broccardo, Laura & Vola, Paola & Zicari, Adrian & Alshibani, Safiya Mukhtar, 2023. "Contingency-based analysis of the drivers and obstacles to a successful sustainable business model: Seeking the uncaptured value," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    4. Julia Cohen & Carina Marques & Joana Lameira & Maria José Sousa & Manuel Au-Yong-Oliveira, 2020. "The Interrelationship between Corporate Social Responsibility and Strategic Innovation In Aveiro-based Startups," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 11(3), pages 65-86, December.
    5. Eulalia Skawińska & Romuald I. Zalewski, 2020. "Success Factors of Startups in the EU—A Comparative Study," Sustainability, MDPI, vol. 12(19), pages 1-28, October.
    6. Zoltán Csedő & József Magyari & Máté Zavarkó, 2022. "Dynamic Corporate Governance, Innovation, and Sustainability: Post-COVID Period," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    7. Štefan Slávik & Richard Bednár & Ivana Mišúnová Hudáková & Branislav Zagoršek, 2021. "Business models of start-ups and their impact on the sustainability of nascent business," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 29-52, June.
    8. Ivan Bolis & Sandra Naomi Morioka & Wilza Karla dos Santos Leite & Paulo César Zambroni-de-Souza, 2021. "Sustainability Is All about Values: The Challenges of Considering Moral and Benefit Values in Business Model Decisions," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    9. Štefan Slávik & Richard Bednár & Ivana Mišúnová Hudáková, 2021. "The Structure of the Start-Up Business Model—Qualitative Analysis," Sustainability, MDPI, vol. 13(15), pages 1-24, July.
    10. Grete Hagebakken & Christian Reimers & Elsa Solstad, 2021. "Entrepreneurship Education as a Strategy to Build Regional Sustainability," Sustainability, MDPI, vol. 13(5), pages 1-17, February.

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