Balancing Financial, Social, and Environmental Values: Can New Ventures Make an Impact without Sacrificing Profits?

Ferran Giones, Christina Ungerer, Guido Baltes

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Abstract

What drives entrepreneurial action to create a lasting impact? The creation of new ventures that aim at having an impact beyond their financial performance face additional challenges: achieving economic sustainability and at the same time addressing social or environmental issues. Little is known on how these new hybrid organizations, aiming for multiple impact dimensions, organize and prioritize for their social, environmental, and financial goals.
A dataset of 4,125 early-stage ventures is used to gain insights into how blended values are converted into financial, social and environmental impacts, giving shape to different types of hybrid organizations.
Our findings suggest new hybrid organizations might opt to sacrifice financial impact to achieve social impact, yet this is not the case when they aim to generate environmental or sustainable impact. Therefore, the tensions and sacrifices related to holding blended values are not homogeneous across all types of new hybrid organizations.
Original languageEnglish
JournalInternational Journal of Entrepreneurial Venturing
ISSN1742-5360
Publication statusAccepted/In press - 5. Feb 2019

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Profitability
Environmental impact
Sustainable development
Economics
Social values
Profit
New ventures
Environmental values
Hybrid organizations

Keywords

  • venture creation
  • social impact
  • blended values
  • sustainability
  • environmental impact
  • Hybrid organization

Cite this

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title = "Balancing Financial, Social, and Environmental Values: Can New Ventures Make an Impact without Sacrificing Profits?",
abstract = "What drives entrepreneurial action to create a lasting impact? The creation of new ventures that aim at having an impact beyond their financial performance face additional challenges: achieving economic sustainability and at the same time addressing social or environmental issues. Little is known on how these new hybrid organizations, aiming for multiple impact dimensions, organize and prioritize for their social, environmental, and financial goals.A dataset of 4,125 early-stage ventures is used to gain insights into how blended values are converted into financial, social and environmental impacts, giving shape to different types of hybrid organizations.Our findings suggest new hybrid organizations might opt to sacrifice financial impact to achieve social impact, yet this is not the case when they aim to generate environmental or sustainable impact. Therefore, the tensions and sacrifices related to holding blended values are not homogeneous across all types of new hybrid organizations.",
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Balancing Financial, Social, and Environmental Values: Can New Ventures Make an Impact without Sacrificing Profits? / Giones, Ferran; Ungerer, Christina; Baltes, Guido.

In: International Journal of Entrepreneurial Venturing, 05.02.2019.

Research output: Contribution to journalJournal articleResearchpeer-review

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T1 - Balancing Financial, Social, and Environmental Values: Can New Ventures Make an Impact without Sacrificing Profits?

AU - Giones, Ferran

AU - Ungerer, Christina

AU - Baltes, Guido

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N2 - What drives entrepreneurial action to create a lasting impact? The creation of new ventures that aim at having an impact beyond their financial performance face additional challenges: achieving economic sustainability and at the same time addressing social or environmental issues. Little is known on how these new hybrid organizations, aiming for multiple impact dimensions, organize and prioritize for their social, environmental, and financial goals.A dataset of 4,125 early-stage ventures is used to gain insights into how blended values are converted into financial, social and environmental impacts, giving shape to different types of hybrid organizations.Our findings suggest new hybrid organizations might opt to sacrifice financial impact to achieve social impact, yet this is not the case when they aim to generate environmental or sustainable impact. Therefore, the tensions and sacrifices related to holding blended values are not homogeneous across all types of new hybrid organizations.

AB - What drives entrepreneurial action to create a lasting impact? The creation of new ventures that aim at having an impact beyond their financial performance face additional challenges: achieving economic sustainability and at the same time addressing social or environmental issues. Little is known on how these new hybrid organizations, aiming for multiple impact dimensions, organize and prioritize for their social, environmental, and financial goals.A dataset of 4,125 early-stage ventures is used to gain insights into how blended values are converted into financial, social and environmental impacts, giving shape to different types of hybrid organizations.Our findings suggest new hybrid organizations might opt to sacrifice financial impact to achieve social impact, yet this is not the case when they aim to generate environmental or sustainable impact. Therefore, the tensions and sacrifices related to holding blended values are not homogeneous across all types of new hybrid organizations.

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