From entrepreneurial orientation to sustainability orientation: The role of cognitive proximity in companies in tourist destinations

Abstract

This study straddles the entrepreneurship and sustainability literatures by analysing the existence of a U-shaped curvilinear relationship between a company's entrepreneurial orientation (EO) and sustainability orientation (SO) and the effect of cognitive proximity (CP) on this relationship in cultural tourist destinations (CTDs). The empirical analysis was carried out on a sample of 238 companies belonging to World Heritage Cities in Peru. The results show a U-shaped curvilinear relationship between EO and SO. Thus, only when companies in CTDs have consolidated their strategic commitment to economic interests do they tend to enhance their strategic commitment to social and environmental matters. Additionally, the curvilinear shape of the relationship is attenuated, approaching a linear relationship for elevated levels of CP. This is because CP can make it easier for tourism companies to detect and take advantage of entrepreneurial opportunities to configure superior service experiences linked to sustainability. Companies located in CTDs in developing countries should strengthen their proactivity, innovativeness and risk-taking so as to bolster their SO. These companies should also develop networks with agents that share their values, goals and language to boost the connection between their strategic commitments to entrepreneurship and sustainability. • Entrepreneurial orientation (EO) has a curvilinear relationship (U-shape) with sustainability orientation (SO). • This curvilinear relationship is moderated (attenuated) by cognitive proximity. • Companies in tourist destinations might strengthen their SO by developing higher levels of EO. • Managers will be able to control the effects of EO on SO with the help of cognitive proximity. • EO and sustainability are studied in cultural tourism destinations in a developing economy.