Customer functional value creation through a sustainable entrepreneurial orientation approach

Abstract

This paper advances a theoretical model to empirically test firms' behaviour regarding sustainable entrepreneurship, enhancing what researchers have recently proposed at a solely conceptual level; this entails sustainable entrepreneurship being understood as a discipline that reliably allows organizations to successfully respond to sustainable development and market requirements. The authors suggest an integrated approach of dynamic-capabilities, S-D logic and product-service system views, which highlights the managerial predisposition to adopt a strategic position that fosters value in use (instead of regular property value), according to the current school of thoughts engaged with innovation and sustainable development. In this regard, this paper investigates structural influences (direct and indirect) of sustainable entrepreneurial orientation and customer functional value creation in firm performance. Hypotheses are tested using the partial least squares method on a multisectoral sample of 210 companies randomly stratified with proportional allocation. The findings indicate that a sustainable entrepreneurial orientation not only has a positive and direct relationship with firm performance, but also that this relationship improves when it is mediated by customer functional value creation. Further research pathways are provided.

The missing links of sustainable supply chain management and green radical product innovation between sustainable entrepreneurship orientation and sustainability performance

“…Another study undertaken among higher educational institutions in Germany by Brändle et al (2019) disclosed that an entrepreneurial firm's orientation toward risktaking positively influences not only enterprise performance but also social and community level performance. SEO tends to play a significant role in a firm's quest to achieve sustainable sufficiency, while concurrently developing win-win green-based strategies that ensure social legitimacy and the gaining of superior reputation (Goldsby et al, 2018;Criado-Gomis et al, 2020). The arguments above suggest that SEO is a significant catalyst for achieving superior sustainability performance in terms of improved EP, FP and SP.…”

“…USA, New Zealand, Spain, China, etc.) where studies on SEO seem to be growing exponentially (Lee and Sine, 2009; De Bruin and Lewis, 2016; Criado-Gomis et al , 2020; Jiang et al , 2018), SEO studies in emergent countries (especially those in sub-Saharan Africa) is still in the infant stage. Specifically, the work of Adomako et al (2019) has bemoaned the negligible studies on SEO in the Ghanaian context; hence called for more studies in this area.…”

Analysis of the integrating sustainable value creation process: evidence from Iran's automotive industry

“…According to some researchers, the creation of value by the company, the perception of value by the customer and the acquisition of value from the market by the company are concepts that companies need in order to build a competitive position in the market and achieve superior performance (Memili et al, 2015;Dapiran and Kam, 2017;Sandberg et al, 2018). A group of researchers also believe that not only creating sustainable value helps the company to succeed in the market, but also customers' perception of the company's value proposition and the company's ability to acquire the value created by customers in the market (Strategic Perspective) can be an effective competitive position of the company in the market and long-term success (Gomis et al, 2020). As shown in Figure 2, due to the turmoil and constant changes in the economic and competitive environment, this group of researchers believe that the business strategy of organizations will be effective when it creates sustainable value with three perspectives; customer perception of value and acquisition of market value by the company is consistent (Mizik and Jacobson, 2003;Chatain and Zemsky, 2011;Kotler, 2017).…”

Manager’s Age, Sustainable Entrepreneurial Orientation and Sustainable Performance: A Conceptual Outlook

“…Therefore, this study advocates that by developing a dynamic capability of SEO, the organization would be able to modify its processes and shift to sustainable operations to be highly productive, effective and efficient [53]. SEO has been studied by scholars in terms of strategic approach [25], in terms of determinants for adopting SEO on individual, organizational and contextual levels [20], the role of environment in SEO [48] and its impact on firm performance [23,54] and customer value cocreation [55]. This denotes the novelty of this proposed model.…”

“…Therefore, using a multiple strategic orientation view can be more useful. Following this justification, considering SEO as a multiple strategic orientation approach and as a dynamic capability, its link with performance was established [54,61]. In conjunction, it was proposed that SEO significantly impacts financial performance.…”