Stakeholder Integration to Overcome Ecological and Economic Trade-Offs in Eco-entrepreneurship

Abstract

Eco-entrepreneurship research shows that ecopreneurs have to address and overcome ecological and economic trade-offs. However, limited studies focus on how ecopreneurs integrate stakeholders to overcome such trade-offs. This study explores the question: How do ecopreneurs integrate stakeholders to overcome ecological and economic trade-offs? Stakeholder theory was used as a lens for this study, as it prioritizes individuals involved in and affected by entrepreneurial activities and ventures. A narrative qualitative research approach provided insights into the study’s research question. The study found that ecopreneurs use four mechanisms to integrate stakeholders to overcome ecological and economic trade-offs. First, ecopreneurs integrate stakeholders’ common interests. Second, ecopreneurs include stakeholders’ input in key decisions, and third, they engage stakeholders in value co-creation. Lastly, ecopreneurs adhere to the guiding institutional frameworks in their interactions with multiple stakeholders. These mechanisms are interrelated; therefore, they do not operate in isolation. This study contributes multi-stakeholder integration to eco-entrepreneurship literature and suggests practical implications for business practitioners.