Doing Well by Creating Economic Value through Social Values among Craft Beer Breweries: A Case Study in Responsible Innovation and Growth

Niclas Erhardt,Carlos Martin-Rios,Jason Bolton,Matthew Luth

doi:10.3390/su14052826

Niclas Erhardt, Carlos Martin-Rios + Show 2 more

Open Access

https://doi.org/10.3390/su14052826

Copy DOI

Abstract

Social values are key to the sustainability of organizations. Drawing on value-based research, stakeholder theory, and corporate social responsibility research, this paper builds a case study of the interplay between social values, innovation, and economic growth. The craft beer industry is a fast-growing industry with a potential emphasis on social values built on small-scale production and localism. We examine how craft breweries attempt to resolve tensions derived from pursuing economic and social values simultaneously. As breweries continue to grow, owners face decisions of scale and growth, which may undermine a value-driven industry with close ties to the local community. Findings from six craft breweries, operating in Northern New England, USA, suggest a complex managerial dilemma involving (a) small-batch innovation for niche and mass production for growth, (b) responsible innovation for balancing local authenticity and geographical expansion, and (c) independent and business partnering. We further unpacked the tensions that operated at local and non-local levels.

Highlights

Companies tackle the grand challenges humanity is facing in various ways [1,2]
A decision to move towards an economic growth strategy may require changes in organizational values, which may conflict with the larger sustainability macro culture, and negatively impact social ties with the consumer and the community
Our findings demonstrate the importance of working at a local level in order to successfully pursue non-local economic growth and reconcile profit business demands and longer-term sustainability and social value aspirations

Summary

Introduction

Companies tackle the grand challenges humanity is facing in various ways [1,2]. Some businesses across industries offset their carbon footprint or adapt their supply chains to source from local providers, while others adopt more operational practices toward sustainability [3,4]. Value-driven organizations are guided by a set of core values shared among internal and external stakeholders [7], which symbolize their identity, mission, and culture and can create and sustain a competitive edge [8,9]. A decision to move towards an economic growth strategy may require changes in organizational values, which may conflict with the larger sustainability macro culture, and negatively impact social ties with the consumer and the community. Much of the research on CSR has been developed from a stakeholder perspective whereby qualities of moral worth are attributed to firms with a positive reputation for social responsibility [23]. Firms in highly competitive industries can utilize CSR as a differentiation strategy to build relationships with stakeholders and create a competitive advantage [26,27]. We seek to better understand a set of core values that SMEs (craft brewers) could focus on as a means of differentiating their products from those of their larger competitors (large brewers)

Methods

Results

Discussion

Conclusion