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Green start-ups and the role of founder personality

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  • Chapman, Gary
  • Hottenrott, Hanna

Abstract

Green start-ups play a vital role in the needed transition towards more environmentally sustainable economies. Yet our understanding of why some founders start green ventures and others do not remains incomplete. We build on the cognitive and decision-making perspectives on start-ups proenvironmental engagement to shed light on the role of founders' personality traits - focusing on the 'Big 5' and risk tolerance - in explaining whether founders' start new ventures with environmentally friendly products. Our analysis of a large, representative, manufacturing and service sector sample of German start-ups illustrates the important role of founder personality traits. Specifically, openness and extraversion promote environmentally friendly products while neuroticism inhibits it. We discuss the implications of these insights.

Suggested Citation

  • Chapman, Gary & Hottenrott, Hanna, 2022. "Green start-ups and the role of founder personality," ZEW Discussion Papers 22-009, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:22009
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    References listed on IDEAS

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    Cited by:

    1. Feilian Xia & James Thewissen & Winifred Huang & Shuo Yan, 2024. "Founder-CEO Extraversion and Sustainability Orientation in Initial Coin Offerings," Entrepreneurship Theory and Practice, , vol. 48(4), pages 941-980, July.
    2. Füner, Lena & Berger, Marius & Bersch, Johannes & Hottenrott, Hanna, 2023. "Local networks and new business formation," ZEW Discussion Papers 23-067, ZEW - Leibniz Centre for European Economic Research.
    3. Chapman, Gary & Hottenrott, Hanna, 2023. "Founder personality and start-up subsidies," ZEW Discussion Papers 23-008, ZEW - Leibniz Centre for European Economic Research.
    4. Pandey, Dharen Kumar & Hunjra, Ahmed Imran & Hassan, M. Kabir & Rai, Varun Kumar, 2023. "Venture capital financing during crises: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 64(C).
    5. Binbin Cai & Yin Chen & Arslan Ayub, 2023. "“Quiet the Mind, and the Soul Will Speak”! Exploring the Boundary Effects of Green Mindfulness and Spiritual Intelligence on University Students’ Green Entrepreneurial Intention–Behavior Link," Sustainability, MDPI, vol. 15(5), pages 1-21, February.
    6. Elisa Rodepeter & Christoph Gschnaidtner & Hanna Hottenrott, 2024. "Big Data and Start-up Performance," Working Papers 232, Bavarian Graduate Program in Economics (BGPE).
    7. Bammens, Yannick & Hünermund, Paul, 2023. "Ecological community logics, identifiable business ownership, and green innovation as a company response," Research Policy, Elsevier, vol. 52(8).

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    More about this item

    Keywords

    emission reduction; environmentally friendly products; green innovation; Big Fivepersonality traits; sustainability;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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