Individual and organizational drivers of pro-social and pro-environmental entrepreneurial behavior for the institutionalization of SDGs

Abstract

[Abstract]: Purpose: This study investigates how intrinsic individual factors (sex and the presence of disabilities), extrinsic individual factors (motivation and education), and organizational drivers (innovation and exporting level) influence new ventures’ engagement with sustainable development goals. Drawing upon the Upper Echelon Theory (UET), which links the individual characteristics of decision-makers, organizational configuration, and strategic decisions within firms, this research analyzes how these factors affect the entrepreneurs' capacity to make a positive social and environmental impact. Methodology: The empirical analysis utilized data from a survey of 1,857 entrepreneurs conducted within the framework of the Spanish Global Entrepreneurship Monitor for 2023, employing both linear and multilevel regression analyses. Findings: Entrepreneurs driven to make a difference, with higher human capital, and engaging in innovative ventures or undergoing internationalization, are more inclined to actively participate in pro-environmental and pro-social behaviors in their new ventures. However, contrary to expectations, female entrepreneurs and entrepreneurs with mild disabilities fail to invest in sustainability practices, despite being more likely to engage with the United Nations Sustainable Development Goals. Organizational characteristics regarding innovation and internationalization capacities in new ventures underlie this behavior. Originality: This study contributes to the literature on entrepreneurial behavior from the UET and cognitive approaches by highlighting the significance of cultural/cognitive factors in shaping entrepreneurs’ adoption of practices aimed at addressing the social and environmental impact of new ventures. Furthermore, the findings underscore the role of innovation and export activities as organizational drivers facilitating the implementation of these practices.