Critical resources and capabilities of sustainable entrepreneurial orientation and its linkage to strategic decision-making

Abstract

Multiple strategic orientations are management philosophies and practices that assist organisations with internal preparation for quicker responses to external environmental changes. An organisations ability to integrate and foster a Sustainable Entrepreneurial Orientation (SEO) into their business strategies, organisational routines, culture and leadership values is yet to be studied. In view of this, this study responds to this unique research gap through exploring the critical resources and capabilities which enable organisations to intentionally foster SEO and identifying its linkage to strategic decision-making. Establishing which organisational components have considerable influence on SEO will enable organisations to recognise opportunities and constraints of their internal contexts and better equip themselves to enact sustainability and innovation focused activities in response to the grand economic, social and ecological challenges facing society and business. The choice of methodology is qualitative research which used one-on-one in-depth interviews with interview respondents in an emerging market context (South Africa) and a developed market context (Italy) which triangulated the data of this phenomenon. The results indicated that intangible, human-centred resources such as leadership, culture and human capital are the most critical resources for SEO to be fostered which must work systemically in combination with each other and through strategic decision-making organisations can gain competitive advantage, firm performance, new resources and capabilities and a continued licence to operate in society. Market context affects this relationship. The study generated the Integrated Sustainable Entrepreneurial Strategy (ISES) Model which can be used by strategic managers and executives to foster SEO within their organisations.