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Making Sense of Ecopreneurs' Decisions to Sell Up

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  • Kate Kearins
  • Eva Collins

Abstract

This article examines the phenomenon of values‐based firms being sold to larger mainstream firms. Its focus is on the sensemaking rationale offered by a New Zealand ecopreneur who sold an organic beverage company after 20 years at the helm. The company case study is presented through two enterprise development narratives based on alternative sensemaking modes. Key values‐related challenges arising in ecopreneurial business are identified, including (1) adhering to the founder's values, (2) growing the business sustainably, (3) deciding whether and when to expand ownership to cope with undercapitalization, (4) deciding who to bring in as new owners to ensure values alignment, (5) determining how and when the founder might leave and (6) ensuring the attractiveness of the sustainability values so that they might be retained. Other factors implicated in the sale of values‐based firms are also postulated. It is argued that, although ecopreneurs might be accused of selling out their principles by selling up, there is some evidence that eco‐brands are being maintained and that growth prospects could be improved after acquisition. Serial ecopreneurship may even extend social benefits. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

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  • Kate Kearins & Eva Collins, 2012. "Making Sense of Ecopreneurs' Decisions to Sell Up," Business Strategy and the Environment, Wiley Blackwell, vol. 21(2), pages 71-85, February.
    • Handle: RePEc:bla:bstrat:v:21:y:2012:i:2:p:71-85
    DOI: 10.1002/bse.710
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    References listed on IDEAS

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    Cited by:

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    2. Séverine Le Loarne Lemaire & Meriam Razgallah & Adnane Maalaoui & Sascha Kraus, 2022. "Becoming a green entrepreneur: An advanced entrepreneurial cognition model based on a practiced-based approach," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 801-828, June.
    3. Kirstie O'Neill & David Gibbs, 2016. "Rethinking green entrepreneurship – Fluid narratives of the green economy," Environment and Planning A, , vol. 48(9), pages 1727-1749, September.
    4. Noelia‐Sarah Reynolds & Diane Holt, 2021. "Sustainable development and profit? A sensemaking perspective on hybrid organisations and their founders," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2147-2159, May.
    5. Albert Jolink & Eva Niesten, 2015. "Sustainable Development and Business Models of Entrepreneurs in the Organic Food Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 386-401, September.
    6. Matthew P. Johnson & Stefan Schaltegger, 2020. "Entrepreneurship for Sustainable Development: A Review and Multilevel Causal Mechanism Framework," Entrepreneurship Theory and Practice, , vol. 44(6), pages 1141-1173, November.
    7. Olivier Boiral & David Talbot & Pascal Paillé, 2015. "Leading by Example: A Model of Organizational Citizenship Behavior for the Environment," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 532-550, September.
    8. Kate V. Lewis & Sue Cassells & Hernan Roxas, 2015. "SMEs and the Potential for A Collaborative Path to Environmental Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 750-764, December.
    9. Christopher Wickert & Antonino Vaccaro & Joep Cornelissen, 2017. "“Buying” Corporate Social Responsibility: Organisational Identity Orientation as a Determinant of Practice Adoption," Journal of Business Ethics, Springer, vol. 142(3), pages 497-514, May.
    10. Anas A. Makki & Hisham Alidrisi & Asif Iqbal & Basil O. Al-Sasi, 2020. "Barriers to Green Entrepreneurship: An ISM-Based Investigation," JRFM, MDPI, vol. 13(11), pages 1-17, October.
    11. Gabriel Eweje, 2020. "Proactive environmental and social strategies in a small‐ to medium‐sized company: A case study of a Japanese SME," Business Strategy and the Environment, Wiley Blackwell, vol. 29(7), pages 2927-2938, November.
    12. Olivier Boiral & Charles Baron & Olen Gunnlaugson, 2014. "Environmental Leadership and Consciousness Development: A Case Study Among Canadian SMEs," Journal of Business Ethics, Springer, vol. 123(3), pages 363-383, September.
    13. Stefano Pogutz & Monika I. Winn, 2016. "Cultivating Ecological Knowledge for Corporate Sustainability: Barilla's Innovative Approach to Sustainable Farming," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 435-448, September.
    14. Tamara Galkina, 2021. "International ECOpreneurship: Environmental commitment and international partner selection of Finnish firms from the energy sector," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 300-320, June.
    15. Torbjörn Ljungkvist & Jim Andersén, 2021. "A taxonomy of ecopreneurship in small manufacturing firms: A multidimensional cluster analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1374-1388, February.

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