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The Dilemma of Disrupting Under Pressure: Exploring the sensemaking of entrepreneurial SMEs’ environmental innovations

Bremer, Natali LU and Rikardsson, Joel LU (2022) ENTN19 20221
Department of Business Administration
Abstract
Innovations with the goal of creating a more sustainable economy and industry has been a topic of study for many researchers over the recent decades. This comes to no surprise since large organizations flag for the problematic consumption and production patterns that could lead to environmental problems at a global scale. The research on these environmental innovations that has been done up until now has been focusing on applying quantitative methods on a wide sample size of large size enterprises, to figure out the drivers, motivators, and forces that affect the way environmental innovations are done. This thesis aims to explore environmental innovation, by looking into how institutional and stakeholder theories reflect the ongoing... (More)
Innovations with the goal of creating a more sustainable economy and industry has been a topic of study for many researchers over the recent decades. This comes to no surprise since large organizations flag for the problematic consumption and production patterns that could lead to environmental problems at a global scale. The research on these environmental innovations that has been done up until now has been focusing on applying quantitative methods on a wide sample size of large size enterprises, to figure out the drivers, motivators, and forces that affect the way environmental innovations are done. This thesis aims to explore environmental innovation, by looking into how institutional and stakeholder theories reflect the ongoing sensemaking process of small and medium size entrepreneurial enterprises. In contrast to previous studies, this thesis applies a qualitative method with an inductive approach in order to establish a deeper understanding of the nuances of environmental innovation from the perspective of three entrepreneurial SMEs in Sweden. The semi-structured interviews provide empirical data which then is organized into themes by using first and second order categorization.
The findings show that the entrepreneurial SMEs face three main challenges in the form of dilemmas when engaging in environmental innovation. These dilemmas appear to stem from different stakeholder pressures and isomorphic processes. The first finding displays the tension entrepreneurial SMEs face when their sustainable ambitions go against the traditional business practices of an industry, which in turn is reflected poorly in their environmental innovation. The second finding shows that the disruptive ambition clashes with the industrial norm and results in incremental innovation, which supports the previous findings that uncertainty induces imitation. The third finding indicates that a compromise is necessary between changing the habits of the customer and adapting to the habits of the customer, which is a back-and-forth of teaching and learning. (Less)
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author
Bremer, Natali LU and Rikardsson, Joel LU
supervisor
organization
alternative title
The Dilemma of Disrupting Under Pressure: Exploring the sensemaking of entrepreneurial SMEs’ environmental innovations
course
ENTN19 20221
year
type
H1 - Master's Degree (One Year)
subject
keywords
Environmental Innovation, Disruptive Innovation, Entrepreneurial SME, Isomorphic processes, Stakeholder pressures.
language
English
id
9087552
date added to LUP
2022-06-22 15:08:02
date last changed
2022-06-22 15:08:02
@misc{9087552,
  abstract     = {{Innovations with the goal of creating a more sustainable economy and industry has been a topic of study for many researchers over the recent decades. This comes to no surprise since large organizations flag for the problematic consumption and production patterns that could lead to environmental problems at a global scale. The research on these environmental innovations that has been done up until now has been focusing on applying quantitative methods on a wide sample size of large size enterprises, to figure out the drivers, motivators, and forces that affect the way environmental innovations are done. This thesis aims to explore environmental innovation, by looking into how institutional and stakeholder theories reflect the ongoing sensemaking process of small and medium size entrepreneurial enterprises. In contrast to previous studies, this thesis applies a qualitative method with an inductive approach in order to establish a deeper understanding of the nuances of environmental innovation from the perspective of three entrepreneurial SMEs in Sweden. The semi-structured interviews provide empirical data which then is organized into themes by using first and second order categorization. 
The findings show that the entrepreneurial SMEs face three main challenges in the form of dilemmas when engaging in environmental innovation. These dilemmas appear to stem from different stakeholder pressures and isomorphic processes. The first finding displays the tension entrepreneurial SMEs face when their sustainable ambitions go against the traditional business practices of an industry, which in turn is reflected poorly in their environmental innovation. The second finding shows that the disruptive ambition clashes with the industrial norm and results in incremental innovation, which supports the previous findings that uncertainty induces imitation. The third finding indicates that a compromise is necessary between changing the habits of the customer and adapting to the habits of the customer, which is a back-and-forth of teaching and learning.}},
  author       = {{Bremer, Natali and Rikardsson, Joel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Dilemma of Disrupting Under Pressure: Exploring the sensemaking of entrepreneurial SMEs’ environmental innovations}},
  year         = {{2022}},
}