Tensions of sustainability in the establishment of new ventures and their managerial responses

Abstract

New ventures that strive for sustainability are crucial in offering solutions to grand social and environmental challenges, but they often face unique tensions. Previous tensions research has primarily examined incumbent firms, thereby limiting the transferability of findings to new venture contexts. Using a conceptual framework based on paradox theory, we explore the tensions that result from the intent to create social and environmental value in addition to economic value. Using content analysis, eight new ventures were investigated longitudinally at the pre-seed and seed phases. The findings reveal that new ventures face different tensions in the categories of organizing, performing, belonging, and learning. Additionally, the study reveals how entrepreneurs manage these tensions. The findings expand on the sustainability management literature and provide a foundation for more research on new ventures’ tensions. Entrepreneurs can draw on our study to identify and potentially overcome these tensions to create value along the triple bottom line.