IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v25y2010i5p481-492.html
   My bibliography  Save this article

Greening Goliaths versus emerging Davids -- Theorizing about the role of incumbents and new entrants in sustainable entrepreneurship

Author

Listed:
  • Hockerts, Kai
  • Wüstenhagen, Rolf

Abstract

This paper proposes a model of how incumbents and new entrants engage in sustainable entrepreneurship. We suggest that in the early stages of an industry's sustainability transformation, new entrants ('Emerging Davids') are more likely than incumbents to pursue sustainability-related opportunities. Incumbents react to the activities of new entrants by engaging in corporate sustainable entrepreneurship activities. While these 'Greening Goliaths' are often less ambitious in their environmental and social goals, they may have a broader reach due to their established market presence. This paper analyses the interplay between 'Greening Goliaths' and 'Emerging Davids' and theorizes about how it is their compounded impact that promotes the sustainable transformation of industries.

Suggested Citation

  • Hockerts, Kai & Wüstenhagen, Rolf, 2010. "Greening Goliaths versus emerging Davids -- Theorizing about the role of incumbents and new entrants in sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 25(5), pages 481-492, September.
    • Handle: RePEc:eee:jbvent:v:25:y:2010:i:5:p:481-492
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0883-9026(09)00081-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Truffer, Bernhard & Markard, Jochen & Wustenhagen, Rolf, 2001. "Eco-labeling of electricity--strategies and tradeoffs in the definition of environmental standards," Energy Policy, Elsevier, vol. 29(11), pages 885-897, September.
    2. Halme, Minna & Huse, Morten, 1997. "The influence of corporate governance, industry and country factors on environmental reporting," Scandinavian Journal of Management, Elsevier, vol. 13(2), pages 137-157, June.
    3. Bird, L. & Wüstenhagen, R. & Aabakken, J., 2002. "A review of international green power markets: recent experience, trends, and market drivers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 6(6), pages 513-536, December.
    4. Cohen, Boyd & Winn, Monika I., 2007. "Market imperfections, opportunity and sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(1), pages 29-49, January.
    5. Helen Haugh, 2006. "Social Enterprise: Beyond Economic Outcomes and Individual Returns," Palgrave Macmillan Books, in: Johanna Mair & Jeffrey Robinson & Kai Hockerts (ed.), Social Entrepreneurship, chapter 12, pages 180-205, Palgrave Macmillan.
    6. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    7. Johanna Mair & Ignasi Marti, 2006. "Social Entrepreneurship Research: A Source of Explanation, Prediction, and Delight," Post-Print hal-02311880, HAL.
    8. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    9. Wustenhagen, Rolf & Markard, Jochen & Truffer, Bernhard, 2003. "Diffusion of green power products in Switzerland," Energy Policy, Elsevier, vol. 31(7), pages 621-632, June.
    10. repec:dau:papers:123456789/12716 is not listed on IDEAS
    11. Lewis, Joanna I. & Wiser, Ryan H., 2007. "Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms," Energy Policy, Elsevier, vol. 35(3), pages 1844-1857, March.
    12. Robert A. Burgelman, 1985. "Managing the new venture division: Research findings and implications for strategic management," Strategic Management Journal, Wiley Blackwell, vol. 6(1), pages 39-54, January.
    13. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation in Large and Small Firms: An Empirical Analysis," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 1, pages 3-15, Edward Elgar Publishing.
    14. Robert Cull & Asli Demirguç-Kunt & Jonathan Morduch, 2007. "Financial performance and outreach: a global analysis of leading microbanks," Economic Journal, Royal Economic Society, vol. 117(517), pages 107-133, February.
    15. Jacobsson, Staffan & Johnson, Anna, 2000. "The diffusion of renewable energy technology: an analytical framework and key issues for research," Energy Policy, Elsevier, vol. 28(9), pages 625-640, July.
    16. Kolk, Ans & Pinkse, Jonatan, 2004. "Market Strategies for Climate Change," European Management Journal, Elsevier, vol. 22(3), pages 304-314, June.
    17. Stefan Seuring, 2004. "Industrial ecology, life cycles, supply chains: differences and interrelations," Business Strategy and the Environment, Wiley Blackwell, vol. 13(5), pages 306-319, September.
    18. Zahra, Shaker A. & Gedajlovic, Eric & Neubaum, Donald O. & Shulman, Joel M., 2009. "A typology of social entrepreneurs: Motives, search processes and ethical challenges," Journal of Business Venturing, Elsevier, vol. 24(5), pages 519-532, September.
    19. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    20. Stenzel, Till & Frenzel, Alexander, 2008. "Regulating technological change--The strategic reactions of utility companies towards subsidy policies in the German, Spanish and UK electricity markets," Energy Policy, Elsevier, vol. 36(7), pages 2645-2657, July.
    21. Giovannucci, Daniele & Ponte, Stefano, 2005. "Standards as a new form of social contract? Sustainability initiatives in the coffee industry," Food Policy, Elsevier, vol. 30(3), pages 284-301, June.
    22. Utterback, James M. & Suarez, Fernando F., 1993. "Innovation, competition, and industry structure," Research Policy, Elsevier, vol. 22(1), pages 1-21, February.
    23. Michael V. Russo, 2003. "The emergence of sustainable industries: building on natural capital," Strategic Management Journal, Wiley Blackwell, vol. 24(4), pages 317-331, April.
    24. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation, Market Structure, and Firm Size," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 2, pages 16-23, Edward Elgar Publishing.
    25. Magali Delmas & Michael V. Russo & Maria J. Montes‐Sancho, 2007. "Deregulation and environmental differentiation in the electric utility industry," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 189-209, February.
    26. Abhishek Lal & Elizabeth Israel, 2006. "An overview of microfinance and the environmental sustainability of smallholder agriculture," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 5(4), pages 356-376.
    27. Metcalfe, J S, 1994. "Evolutionary Economics and Technology Policy," Economic Journal, Royal Economic Society, vol. 104(425), pages 931-944, July.
    28. Siebenhuner, Bernd & Dedeurwaerdere, Tom & Brousseau, Eric, 2005. "Introduction and overview to the special issue on biodiversity conservation, access and benefit-sharing and traditional knowledge," Ecological Economics, Elsevier, vol. 53(4), pages 439-444, June.
    29. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    30. Kai Hockerts, 2006. "Entrepreneurial Opportunity in Social Purpose Business Ventures," Palgrave Macmillan Books, in: Johanna Mair & Jeffrey Robinson & Kai Hockerts (ed.), Social Entrepreneurship, chapter 10, pages 142-154, Palgrave Macmillan.
    31. Dean, Thomas J. & McMullen, Jeffery S., 2007. "Toward a theory of sustainable entrepreneurship: Reducing environmental degradation through entrepreneurial action," Journal of Business Venturing, Elsevier, vol. 22(1), pages 50-76, January.
    32. Mair, Johanna & Martí, Ignasi, 2006. "Social entrepreneurship research: A source of explanation, prediction, and delight," Journal of World Business, Elsevier, vol. 41(1), pages 36-44, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefan Schaltegger & Marcus Wagner, 2011. "Sustainable entrepreneurship and sustainability innovation: categories and interactions," Business Strategy and the Environment, Wiley Blackwell, vol. 20(4), pages 222-237, May.
    2. Miguel-Angel Galindo-Martín & María-Soledad Castaño-Martínez & María-Teresa Méndez-Picazo, 2020. "The Relationship between Green Innovation, Social Entrepreneurship, and Sustainable Development," Sustainability, MDPI, vol. 12(11), pages 1-19, June.
    3. Sayem Hossain & M. Abu Saleh & Judy Drennan, 0. "A critical appraisal of the social entrepreneurship paradigm in an international setting: a proposed conceptual framework," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-22.
    4. DiVito, Lori & Bohnsack, René, 2017. "Entrepreneurial orientation and its effect on sustainability decision tradeoffs: The case of sustainable fashion firms," Journal of Business Venturing, Elsevier, vol. 32(5), pages 569-587.
    5. McMullen, Jeffery S., 2018. "Organizational hybrids as biological hybrids: Insights for research on the relationship between social enterprise and the entrepreneurial ecosystem," Journal of Business Venturing, Elsevier, vol. 33(5), pages 575-590.
    6. Rocío Aliaga-Isla & Benjamin Huybrechts, 2018. "From “Push Out” to “Pull In” Together : An Analysis of Social Entrepreneurship Definitions in the Academic Field," Post-Print hal-02312230, HAL.
    7. Sascha Kraus & Janina Burtscher & Thomas Niemand & Norat Roig-Tierno & Pasi Syrjä, 2017. "Configurational Paths to Social Performance in SMEs: The Interplay of Innovation, Sustainability, Resources and Achievement Motivation," Sustainability, MDPI, vol. 9(10), pages 1-17, October.
    8. Sascha Kraus & Janina Burtscher & Christine Vallaster & Martin Angerer, 2018. "Sustainable Entrepreneurship Orientation: A Reflection on Status-Quo Research on Factors Facilitating Responsible Managerial Practices," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
    9. Sayem Hossain & M. Abu Saleh & Judy Drennan, 2017. "A critical appraisal of the social entrepreneurship paradigm in an international setting: a proposed conceptual framework," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 347-368, June.
    10. Brigitte Hoogendoorn & Peter Zwan & Roy Thurik, 2019. "Sustainable Entrepreneurship: The Role of Perceived Barriers and Risk," Journal of Business Ethics, Springer, vol. 157(4), pages 1133-1154, July.
    11. Mario La Torre & Helen Chiappini (ed.), 2020. "Contemporary Issues in Sustainable Finance," Palgrave Studies in Impact Finance, Palgrave Macmillan, number 978-3-030-40248-8, December.
    12. Philip Hallinger, 2021. "A Meta-Synthesis of Bibliometric Reviews of Research on Managing for Sustainability, 1982–2019," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    13. Frank Martin Belz & Julia Katharina Binder, 2017. "Sustainable Entrepreneurship: A Convergent Process Model," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 1-17, January.
    14. Shubhabrata Basu & Anita Sharma, 2014. "Exploring Stewardship as an Antecedent Behavioural Trait of Social Entrepreneurs," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 23(1), pages 19-33, March.
    15. Irene L. Bahena-Álvarez & Eulogio Cordón-Pozo & Alejandro Delgado-Cruz, 2019. "Social Entrepreneurship in the Conduct of Responsible Innovation: Analysis Cluster in Mexican SMEs," Sustainability, MDPI, vol. 11(13), pages 1-21, July.
    16. Brigitte Hoogendoorn & Daniela Guerra & Peter Zwan, 2015. "What drives environmental practices of SMEs?," Small Business Economics, Springer, vol. 44(4), pages 759-781, April.
    17. Yeamduan Narangajavana & Tomas Gonzalez-Cruz & Fernando J. Garrigos-Simon & Sonia Cruz-Ros, 2016. "Measuring social entrepreneurship and social value with leakage. Definition, analysis and policies for the hospitality industry," International Entrepreneurship and Management Journal, Springer, vol. 12(3), pages 911-934, September.
    18. Mersland, Roy & Nyarko, Samuel Anokye & Szafarz, Ariane, 2019. "Do social enterprises walk the talk? Assessing microfinance performances with mission statements," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    19. Khursheed, Ambreen & Fatima, Maham & Mustafa, Faisal & Nawaz Lodhi, Rab & Akhtar, Ayesha, 2021. "An Empirical Analysis of the Factors Influencing Social Entrepreneurship: A Gendered Approach," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    20. Singaram, Raja & Radu-Lefebvre, Miruna & Gartner, William B., 2023. "Gordian knot uncut: Understanding the problem of founder exit in social ventures," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbvent:v:25:y:2010:i:5:p:481-492. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusvent .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.