The Three Dimensions of Sustainability: A Delicate Balancing Act for Entrepreneurs Made More Complex by Stakeholder Expectations

Abstract

Previous research on sustainable entrepreneurship has mainly aimed to understand the antecedents of entrepreneurs’ sustainability-oriented behavior. Yet the literature lacks a more nuanced understanding of how entrepreneurs implement sustainability strategies when creating a new venture. Drawing on sustainability concepts, we first examine how entrepreneurs balance the economic, environmental, and social dimensions as part of their ventures’ strategic ambitions. We show that sustainable entrepreneurs prioritize the three sustainability dimensions and possibly reprioritize them in response to stakeholder interests. Applying a stakeholder theory perspective, we theorize that how entrepreneurs balance their sustainability dimensions and goals depends on the degree of stakeholder involvement and of external expectations. Our contributions refine the growing sustainable entrepreneurship literature and call attention to the importance of including weightings and time when examining the dimensions of sustainability.