Abstract

AbstractThis study presents a multidimensional taxonomy of “ecopreneurship” for small manufacturing firms. Based on a cluster analysis of 312 Swedish firms, four distinct clusters are identified: pioneers, green dumpers, overlookers, and recyclers. These clusters are compared regarding their level of entrepreneurial orientation and firm performance. Based on the results, and because of the resource constraints associated with small firms, managers of such companies are advised to examine the economic consequences of specific environmental business practices and to adopt a less aggregated approach to ecopreneurship. This study illustrates the usefulness of a multidimensional scale when researching environmental behaviors and is a response to the lack of an empirically based classification of ecopreneurship configurations.

Highlights

  • Owing to societal trends, ecological and environmental awareness, and pressures from consumers and customers, sustainability has emerged as an increasingly important issue for small firms (Andersén, Jansson, & Ljungkvist, 2020; Halme & Korpela, 2014; Kuckertz & Wagner, 2010; Shepherd & Patzelt, 2011)

  • To explain and categorize the multifaceted concept of sustainable entrepreneurship, several typologies and taxonomies have been developed. Such classifications are important because they provide an overview of how entrepreneurship and various environmental practices are manifested in firms and various firm classifications; for example, the Miles and Snow (1978) typology has had a great impact on various areas of business and management research and practice

  • To address the lack of empirical, multidimensional typologies, the purpose of this study is to develop a contemporary multidimensional taxonomy of ecopreneurship for small manufacturing firms, leading to the following research question: What characterizes clusters of small manufacturing companies from an ecopreneurial perspective? as the positive relationship between small business, economic growth, and employment has been verified and highlighted in numerous studies (Gibb & Li, 2003; Tether & Storey, 1998), studying the present group of businesses is justified from an ecopreneurial perspective (Galkina & Hultman, 2016; Isaak, 2002; Jolink & Niesten, 2015; Schaltegger & Wagner, 2011), examining the relationships between environmental variables, entrepreneurial behavior, and economic variables such as growth and profitability

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Summary

Introduction

Ecological and environmental awareness, and pressures from consumers and customers, sustainability has emerged as an increasingly important issue for small firms (Andersén, Jansson, & Ljungkvist, 2020; Halme & Korpela, 2014; Kuckertz & Wagner, 2010; Shepherd & Patzelt, 2011). This suggests an emphasis on the sustainability of small firms' environmental practices (e.g., in production, product development, and waste management) as well as supply chains (Zhu, Sarkis, & Lai, 2008). Most classifications of environmental sustainability are dominated by a unidimensional approach, that is, that companies are classified based on their overall focus on environmental issues at an aggregated level (e.g., Klewitz & Hansen, 2014; Paulraj, 2009; Roome, 1992; Runhaar, Tigchelaar, & Vermeulen, 2008; Walker, Ni, & Dyck, 2015)

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