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Exploring dynamic capabilities and green innovations in born sustainable firms

Author

Listed:
  • Rita Mura

    (University of L'Aquila, Italy)

  • Francesca Vicentini

    (University of Rome "Foro Italico", Italy)

  • Luciano Fratocchi

    (University of L'Aquila, Italy)

  • Ludovico Maria Botti

    (Azienda Biologica Trebotti, Italy)

  • Maria Vincenza Chiriacò

    (Euro-Mediterranean Center on Climate Change (CMCC), Italy)

Abstract

Born sustainable firms aim to regenerate the environment and drive positive societal changes since their establishment. Therefore, they need to leverage dynamic capabilities and their micro-foundations to reach their strategic aims. This paper investigates how dynamic capabilities—and their micro-foundations—influence the transition of such firms towards carbon neutrality. It assumes a holistic approach, analyzing the contribution of the firm’s ecosystem to the development of its dynamic capabilities. Finally, the role of green innovations on the path toward carbon neutrality is evaluated. The adopted research method is based on a single longitudinal case study concerning a small organic wine-born sustainable firm implementing a sustainable and circular business model. Our findings clearly show that a firm's dynamic capabilities—belonging to the sensing, seizing, and reconfiguring clusters—play a critical role even in the case of micro and small companies, which are rarely investigated in the extant literature. However, due to the traditional resource poverty characterizing such companies, dynamic capabilities must be rooted in micro-foundations developed through interactions with partners within the firm's ecosystem. At the same time, developed capabilities allow the company to create and exploit a set of green innovations, which, in turn, push forward the net zero goal.

Suggested Citation

  • Rita Mura & Francesca Vicentini & Luciano Fratocchi & Ludovico Maria Botti & Maria Vincenza Chiriacò, 2024. "Exploring dynamic capabilities and green innovations in born sustainable firms," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 12(1), pages 152-168, September.
    • Handle: RePEc:ssi:jouesi:v:12:y:2024:i:1:p:152-168
    DOI: 10.9770/jesi.2024.12.1(11)
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    References listed on IDEAS

    as
    1. Jean D. Kabongo & Olivier Boiral, 2017. "Doing More with Less: Building Dynamic Capabilities for Eco‐Efficiency," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 956-971, November.
    2. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
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    More about this item

    Keywords

    dynamic capabilities; born sustainable firm; ecosystem; green innovation; wine sector; sustainability;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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