Social and Sustainable Entrepreneurship

Abstract

The escalating nature of the climate crisis and the increased salience of stakeholder expectations have reconfigured the entrepreneurial arena, with social and sustainable entrepreneurship assuming centre stage as hybrid forms that combine economic, social, and environmental objectives. Sustainability orientation and social innovation are perceived as drivers of venture performance, although the performance implications of these constructs have been found to be inconsistent and inconclusive in the extant literature. The current study investigates the relationship between sustainability orientation, social innovation, and venture performance in social and sustainable ventures, while considering the mission-profit tensions that are characteristic of hybrid forms. Using the Triple Bottom Line (TBL) model and the theoretical propositions of institutional theory, the current study employs a mixed-methods approach to generate generalizable and contextual insights. The quantitative data collected from mission-driven ventures are analysed to examine the performance implications of sustainability orientation, while the qualitative data collected through interviews are analyzed to generate insights into the mission-profit tensions that are characteristic of hybrid forms. The findings reveal that sustainability orientation is positively related to social and financial performance, especially when combined with innovative business models and stakeholder alignment strategies, although mission-profit tensions are found to be pronounced, especially in the scaling phase of social and sustainable ventures. The current study contributes to the entrepreneurship and sustainability literature by clarifying the performance implications of sustainability orientation and provides practical insights into the management of social and sustainable ventures.