Remaking Capitalism: The Strength of Weak Legislation in Mobilizing B Corporation Certification

Lucas, David S.; Grimes, Matthew; Gehman, Joel

doi:10.5465/amj.2020.1688

Cited by 24 publications

(15 citation statements)

References 93 publications

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“…Some maturing firms respond by uniquely altering their human resource investments toward entrepreneurial employees. Future work may extend these insights by studying mechanisms that exhibit variation in agency‐intensity over space and/or time—for example, as in similar legislative changes with varying strength or scope across jurisdictions (Lucas, Grimes, & Gehman, 2022). This would yield insights into how ventures are enabled under different manifestations of a given mechanism 6…”

Section: Discussionmentioning

confidence: 99%

A cloud's silver lining? The impact of policy interventions on new and maturing technology ventures' online recruitment

Lucas

Bellavitis

Park

2023

Strategic Entrepreneurship

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Research summary We synthesize the external enablement (EE) framework with insights from labor economics and strategic human capital to theorize how restrictive policy interventions shape technology ventures' employee recruitment, attending to both sides of the hiring dyad. We engage in a quantitative study of over 220,000 recruiting interactions between technology ventures and candidates on a prominent digital networking platform surrounding the early COVID‐19 pandemic policy responses. We find that firms' recruitment declined significantly while candidates' responsiveness increased during the early COVID‐19 policy interventions. In turn, young technology ventures were enabled to hire more during the interventions, whereas maturing ventures were enabled to hire differently—acquiring candidates with greater entrepreneurial orientation. Our work extends the EE framework to human resource strategies and to heterogeneous enablement across firm age. Managerial summary Hiring is a critical task for young and maturing venture firms, and environmental disruptions can impinge heavily on recruiting processes. We study how restrictive policy interventions shape technology ventures' employee recruitment. Examining over 220,000 recruiting interactions on a major digital platform before and during the early COVID‐19 policy responses, we find that restrictive policy interventions alter the technology venture labor market, deterring some firms from recruiting while making others more successful in their continued hiring efforts. Furthermore, we discover that maturing firms are more adaptive than young firms in their selection of candidates during policy interventions—seeking employees with more entrepreneurial characteristics.

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Section: Discussionmentioning

confidence: 99%

A cloud's silver lining? The impact of policy interventions on new and maturing technology ventures' online recruitment

Lucas

Bellavitis

Park

2023

Strategic Entrepreneurship

Self Cite

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“…On the basis of the foregoing, we argue that existing certification-based concepts that try to measure firm performance by considering economic, social, and environmental factors (e.g., B-corporations; environmental, social, and governance [ESG]; fair trade) neither make a significant societal change nor MS participation plausible despite their appeal about "remaking capitalism" (Lucas, Grimes, & Gehman, 2020) for better societal outcomes. This is because while certifications may increase the awareness of firms to do the right thing or make government authorities impose more pressure on firms to do more for societal welfare, the inherent corporate model, which relies on competitive advantage and efficiency-based measurement, fails to overcome the ethical dilemma of how to ensure MS participation in a pragmatic and ethical way.…”

Section: Limitations Of Stakeholder Theory In Relation To Ms Conceptu...mentioning

confidence: 99%

Toward a Theory of Marginalized Stakeholder-Centric Entrepreneurship

2023

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The neglect of marginalized stakeholders is a colossal problem in both stakeholder and entrepreneurship streams of literature. To address this problem, we offer a theory of marginalized stakeholder-centric entrepreneurship. We conceptualize how firms can utilize marginalized stakeholder input actualization through which firms should process a variety of ideas, resources, and interactions with marginalized stakeholders and then filter, internalize, and, finally, realize important elements that improve a variety of related socioeconomic, ethical, racial, contextual, political, and identity issues. This input actualization process enables firms to innovate with marginalized stakeholders and develop marginalized stakeholder capabilities. To this end, firms fulfill both their moral and entrepreneurial claims to marginalized stakeholders.

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“…The essential question for extrinsically motivated corporations is to determine when it pays to take environmental action (Coen et al, 2022; Lucas et al, 2022) or when green policies can provide a competitive advantage or enhance the reputation of the company (Cubilla‐Montilla et al, 2020). Other firms, however, adopt environmentally responsible policies out of conviction (Thelken & de Jong, 2020; Yasir et al, 2021).…”

Section: Corporate Environmental Behavior: Key Issuesmentioning

confidence: 99%

“…As a social phenomenon, that is, as a community, (Babutsidze & Chai, 2018) industry can stimulate environmental practices and self‐regulation. Lucas et al (2022) point to the authority and legitimation of a group of companies which unite to regulate their collective actions, address common threats or further the common good by establishing a standard code of conduct or the promotion of independent standards. Authors such as Blass et al (2014) or Babutsidze and Chai (2018) go further, emphasizing the greater effectiveness of inter‐industry environment contagion.…”

Section: The Role Of Industrymentioning

confidence: 99%

Follow the genuine leader: The “green imitation”

Calderón

Urbina

Expósito

2022

Business Ethics Env & Resp

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The combined effect of coercion (public and private pressure), self‐interest (competitive advantage) and conviction (intrinsically motivated or genuine) explain why environmental issues have become a key priority for companies. While research has explored coercion and competitive advantage, the role of conviction has received little attention. This paper aims to address this gap. Conviction, which has been correlated with institutional and individual drivers, offers more stable results and a potential multiplier effect as good examples are disseminated by imitation throughout an industry. While the role of imitation has drawn increasing attention of business management studies, it has received scant attention in research on sustainability. This is the second gap this paper aims to address, contributing to the literature on sustainability in two ways: firstly, we will further explore the role of conviction in environmental sustainability; secondly, employing a compartmental model of epidemic propagation, used for other social phenomena, we model the role genuine examples by leaders can play within an industry and the dissemination of good behavior by imitation. Defining genuine conviction as the voluntary mitigation of the externalities of a firm's operations beyond that required by law or the market, substantiated in the responsible behavior of its leaders, our model discovers patterns that policymakers could use to create a “sustainability epidemic”. We suggest mathematical models of epidemics can be applied to sustainability, offering a fresh perspective on the phenomenon of imitation, allowing us to discover how some cultural and social habits can be used.

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Remaking Capitalism: The Strength of Weak Legislation in Mobilizing B Corporation Certification

Cited by 24 publications

References 93 publications

A cloud's silver lining? The impact of policy interventions on new and maturing technology ventures' online recruitment

A cloud's silver lining? The impact of policy interventions on new and maturing technology ventures' online recruitment

Toward a Theory of Marginalized Stakeholder-Centric Entrepreneurship

Follow the genuine leader: The “green imitation”

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