Exploring the coevolution of entrepreneurial ecosystems and institutional entrepreneurship: The case of sustainable entrepreneurship

Abstract

While the literature has emphasized that sustainable entrepreneurs have to carry out institutional entrepreneurship against their own adverse environment, we still know little about entrepreneurs' perception of their entrepreneurial ecosystem and how its evolution might influence the need for institutional entrepreneurship. We address this gap by combining multiple data sources, used through an in-depth case study of four Parisian sustainable startups, two founded in the 2010s and two founded in the 2020s. Results indicate that the entrepreneurial ecosystem was considered hostile for sustainable startups in the 2010s, which led entrepreneurs to conduct rather isolated institutional entrepreneurship. While influencing their entrepreneurial ecosystem towards sustainability, they opened opportunities for similar new entrants, who now face fewer difficulties. However, sustainable entrepreneurs still act as institutional entrepreneurs in a favourable environment, beyond the sole interest of their startup. This qualitative study emphasizes sustainable entrepreneurship's challenges with respect to each component of their entrepreneurial ecosystem according to their context.