ABSTRACT
Since the turn of the century, there has been a growing interest in both ‘environmental’ (e.g. Kirkwood and Walton 2010a, 2010b; Walley et al. 2010) and ‘sustainable’ entrepreneurship (Cohen and Winn 2007; Dean and McMullen 2007; Hall et al. 2010; Pacheco et al. 2010). Although the topic remains under-theorized and is largely disconnected from other mainstream literatures, public and practitioner attention, concern and relevance remains high. There is a need to address both the lack of empirical evidence that currently exists and the general absence of conceptual developments in this field of study (Thompson and Scott 2010). Within the market economy, and especially in relation to financial incentives, there has been less governmental interest and influence than one might expect given the growing public attention given to these issues. Sustainable entrepreneurship is sourced from eco-regulatory changes, new knowledge, changes in perceptions and through the discovery and exploitation of what Drucker (1985a, 1985b) terms an ecological niche. The motivation to grasp such opportunities (in a desire to ‘improve the world’) arises from the actions of the inventor, entrepreneur and/or groups of environmentalists. Whilst environmentalists may be motivated by changes that create a greener and more sustainable world, the inventor and entrepreneur may also look towards the commercial possibilities of new innovations. It is not uncommon for opportunistic and committed environmental entrepreneurs to spot and exploit opportunities both to gain competitive advantage and deliver critical outcomes by focusing on green issues. Importantly, the outcomes can be the same but with the latter there may be longer-term opportunities for further development and expansion. Whilst ‘both entrepreneurship and environmentalism are founded on a perception of value’ (Anderson 1998, 135), sustainable entrepreneurs have distinct ecological values from other entrepreneurs who are primarily driven by commercial gain (Dixon and Clifford 2007; Libecap 2009; Linnanen 2005). In further developing our understanding of these issues and the interrelationship between sustainability, entrepreneurship and social innovation we
develop and introduce the novel concept of eco-socio innovation (ESI). We theorize the role of social innovations in sustainable entrepreneurship (new venture creation associated with sustainable development) through building on Thompson’s environment-values-resources (EVR) framework (Thompson 1999; Thompson et al. 2014). The chapter’s novel contribution is in combining the concepts of sustainable entrepreneurship and social innovation into one overarching meta-concept that acknowledges, first, the interplay with EVR and, second, the cascade effect of sustainable entrepreneurs’ innovative ecological impacts upon social outcomes. In so doing, the chapter illuminates how the key components of ESI comprise an enacted and collective process that addresses both social and ecological objectives. Our starting point, therefore, rests on a conceptualization of eco-socio innovations in relation to: the Environment (E), where changing public opinion, societal values and forms of legislation all influence the speed, direction and shape of ecosocio innovations; Values (V), with respect to the views and norms that reside within a particular organization; and Resources (R), which refers to activities in terms of impact, sustainability and wider indirect social outcomes. We argue that in order for changes to be truly sustainable, values must be affected although, in the short term, environmental driven change can have impacts. In the longer term, however, sustainability requires a shift towards positive customer perceptions of the changes and their environmental implications; for example, in the general public acceptance of the wider social good of purchasing Fairtrade goods or organic foodstuffs. The focus is on sustainable entrepreneurship – seen as new venture creation associated with sustainable development – that provides a lens through which we can examine these processes in developing our concept of eco-socio innovation. This concept is used not only to generate further insight into the process by which sustainability-driven innovations that are enacted by sustainable entrepreneurs have direct positive ecological impacts that then cascade into indirect social outcomes, but also to shed light on the practical barriers and opportunities for change as well as advancing theory in this developing field of inquiry. In the section that follows we discuss sustainable entrepreneurship drawing attention to the economic and ecological aspects that need greater recognition in managing capital in a sustainable way. We then turn to the concept of social innovation and highlight the development and use of this concept in the discovery and exploitation of innovations that improve the well-being of people in society. Our concept of eco-socio innovation is then developed and discussed in relation to a number of illustrative business scenarios. We conclude by calling not only for the need for further research but, perhaps more importantly, for greater business and governmental awareness, discussion and investment into this important area for sustainable business development.
