Dynamic management of the environmental enterprise: a qualitative analysis

Abstract

Defines environmental entrepreneurship as entrepreneurial activity that benefits the environment. Building on this definition, presents two related conceptual schema that may be used to study environmental enterprises. Presents an environmental classification scheme that can be used to categorize the mission or market strategy for different environmental enterprises. Applies the Dynamic System Planning Model, an open systems model of organization effectiveness, to explore the ways in which an environmental market strategy focus may impact other management issues. Presents qualitative data gathered from interviews and case materials from four small environmental enterprises. The environmental focus influenced the management approach to resource acquisition in three of the four companies. Environmental entrepreneurs also shared the common characteristic of taking a proactive stance relative to government sanctions and incentives boosting their respective industries. Points out a few practical implications and suggestions for future research based on the findings. One of these implications relates to the basic premiss of environmental entrepreneurship: Is it healthy for a business to focus the entire business on the environmental sector? Suggests not, recommending instead that a company may reduce its risk and thus potentially prolong its existence by diversifying into both environmental and non‐environmental industry segments, as long as both are linked to the company’s core competences. Urges further study of corporate strategic issues of this type. Recommends directions for future research.