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The purpose of this paper is to study what motivates small businesses to engage in collective action, especially in high-tech industry.

Application domain is smart living industry, in which installation companies offer ICT-enabled solutions for smart home services. A survey was conducted among 140 small/medium installation companies in smart living industry which are members of a major Dutch branch organization. Structural Equation Modelling (SEM) was used to model and analyse data from the survey.

The paper found that different types of motivations do not significantly increase the collective orientation of small businesses. Moreover, the current involvement of small companies in smart living projects is not directly related to their collective orientation.

The lack of collaboration is resulting in market fragmentation and lack of technological interoperability. The paper advise policy makers to provide selective incentives to stimulate collaboration and to facilitate knowledge sharing on best practices and collective business cases.

The motivational factors for collective action between small businesses in high-tech sectors have rarely been studied. Although many studies addresses collective action issues on an individual level, the literature lacks an integration of existing theories into a set of testable hypotheses that aim at motivators and inhibitors of inter-organizational collective action.

Business collective action (BCA) is often necessary to address sustainability issues, which are generally complex and multi-layered issues that cannot always be properly addressed by individual businesses. Firms participating in BCA for corporate sustainability have access to clearer rules and guidelines for managing sustainability issues, are more efficient in managing multiple stakeholder demands due to enhanced opportunities for learning, benefit from individual and joint reputation management, and are better able to capture weak signals about opportunities and threats in the external environment. Despite these benefits, our understanding of BCA for corporate sustainability is still limited. Most of the existing work in this area has examined different forms of BCA for corporate sustainability – for example, multi-stakeholder initiatives, trade associations, and other forms of business membership organizations – individually. In this chapter, the authors provide an overview of BCA for corporate sustainability. The authors start the chapter by discussing the importance of BCA in general and BCA for corporate sustainability, in particular to research and practice, and its benefits to firms and society. The authors then present a typology of the different forms of BCA for corporate sustainability, discussing their differences and similarities from an issues management perspective. The authors conclude the chapter with a brief discussion of future research in this area.

Organizations are increasingly confronted with legitimacy threats related to the perceived social costs of their business activities. Despite a significant amount of research on the responses of individual organizations, surprisingly limited attention has been paid to the collective activities firms may engage to address such issues. In this paper, we use institutional theory as a lens for an exploratory case study of Issue-Based Industry Collective (IBIC) action in the alcohol industry. Our findings identify a new organizational form, the IBIC and inspire new research avenues at the intersection of business collective action, social issues, and institutional theory.

The purpose of this study is to explore how business-only corporate responsibility coalitions (CRCs) help member firms manage sustainability issues.

This conceptual analysis of business-only CRCs, using the literature on sensemaking and social issues management, explores how participation in CRCs enhances firms’ capabilities for sustainability issues management by improving their sensemaking competencies, abilities to choose and adapt issue responses and efficiency in implementing issue responses through better issue response mechanisms.

Business-only CRCs help firms with high as well as low levels of sustainability orientation better manage sustainability issues by carrying out the exploratory aspects of issues management: scanning, identifying and evaluating issues and proposing responses to issues.

The widely applicable, nonbinding and scripted responses proposed by CRCs allow participating firms a high degree of autonomy to choose and adapt their responses. However, firms must approach their CRC memberships with collaborative intent and high transparency to achieve these benefits.

Participation in CRCs can help scale up firms’ responses to sustainability issues through more efficient issues management processes that allow them to customize issue responses to their needs.

Research on the management of sociopolitical issues can be enriched if these issues are understood as collective, multilevel challenges rather than purely strategic issues faced by individual firms. This study contributes to the business collective action and issues management literatures by emphasizing the importance of collective management of sustainability issues and how it may improve firms’ capabilities for sustainability issues management.

This study aims to help develop “business principles for stakeholder capitalism” in two steps. First, the study defines internal logic of three theories of capitalism and two variants within each theory. Second, it examines approaches to integration into modern democratic capitalism. Treating the three theories as substitutes identifies relative strengths and weaknesses; complementarity and partial overlap approaches to integration study the institutional settings within which stakeholder capitalism operates. Empirical outcomes reflect competition between market and stakeholder businesses for participants, with institutional conditions determining the scope of collective action.

The approach aligns three typologies in a unique conceptual arrangement defining the three theories of capitalism: forms of capitalism, potential failures of each form and associated types of goods. The first method examines the internal logic of each theory of capitalism. The second draws on traditional narrative review of references documenting each theory of capitalism and variants together with modern Marxist anti-capitalism.

Three typologies align uniquely with the theories of capitalism, each having two variants. Both variants of stakeholder capitalism are compatible with compassionate capitalism, constitutional government or polycentric governance but not with self-interest capitalism, dictatorship or Marxism. A theory of modern democratic capitalism allocates roles for private, club and social goods with empirically variable mixes occurring across countries. Competition among different types of enterprises provides an empirical test for comparative advantages of stakeholder capitalism. Future research should consider approaches for testing the proposed conceptual scheme in practice concerning capacity to deal with grand challenges, wicked problems and black swan events.

Research approach is limited to logical examination of theories and literature documentation without direct empirical confirmation. The study does not address practical implications for managers and public officials or social implications concerning private incentives, stakeholder cooperation or collective action.

Originality lies in shifting terms of debate about stakeholder capitalism from advocacy of substitute theories to understanding of its relationship to market capitalism and collective action capitalism. Value lies in explaining desirability of theoretical integration of three types of capitalism into a comprehensive framework for modern democratic capitalism.

The study of interorganisational cooperation has gained increased currency. An important empirical and conceptual contribution in this field owes much to the network approach. The picture provided by the network approach contrasts with other models that regard cooperation as a mere contractual and legal inter‐corporate connection. Whilst accepting the existence of formal types of collaborative arrangements, the network approach emphasises the importance of informal and emergent cooperation. This paper is an attempt to extend the current perspective by focusing on interorganisational cooperation in the context of collective action phenomena. These usually involve a large number of actors concerned with the formulation of market rules, the prevention of instability and disorder and, in general, the promotion or defence of their mutual interests. The paper offers an institutional explanation of why and how collective actions emerge and influence the shape and evolution of industrial networks.

Entrepreneurship involves complex interactions between individuals and environments but there is little research on these dynamics. We address this gap by conducting an inductive qualitative study of entrepreneurs in the exclusive tourist destination of Tiradentes, Brazil. Tiradentes has a unique architectural, cultural, and economic heritage that serves as a unique sociocultural backdrop that influences entrepreneurs’ models of start-up thinking and action. Specifically, our investigation revealed that entrepreneurs’ backgrounds (native vs. nonnative) and social identities come together with the sociocultural fabric of the community in a way that moved them towards a “Joia” or “Bijuteria” orientation, each of which were associated with a distinct mindset. This diversity had implications for entrepreneurs’ conceptualizations of start-up models possible within the backdrop of Tiradentes sociocultural fabric and this influenced the actions entrepreneurs took such as the geographic location chosen for the business and the business practices used. We discovered that entrepreneurs favoring one orientation over another tended to occupy predictable physical and social positions in the community while also espousing similar values and perspectives. These results are used to elaborate the theory on the link between the external and internal explanation for entrepreneurial thinking and action. The net effect is new understanding regarding ways models of start-up thinking and action can be investigated.

Seeking to contribute, from an academic perspective, to the construction of a better tomorrow that leaves no segment of society behind, this final chapter presents arguments for building sustainable futures that are possible through regenerative development. We talk about ‘futures’ in the plural, because there is more than one future that could be sustainable. We explain the importance of prioritising positive values involving the environment, society and markets, ethical considerations of doing no harm and the search for regenerative relationships that lead to collective action. We also explain that regeneration goes beyond restoration. This chapter is divided into four parts. First, we discuss regenerative capitalism. Then, we explain why climate action must be collective and must involve business, governments, academia and civic organisations. The third part presents a concise summary of the findings of the studies presented in this book. Finally, we explain why we need a new social contract to achieve the goal of sustainable futures through regenerative development.

Social capital (SC), emerging as a new type of capital with 1980s, is defined as resources such as knowledge, opportunities, power, goodwill, and cooperation, achieved by means of interpersonal relationships. Businesses in possession of these resources will clearly gain an economic competitive advantage. This study was designed to determine how SC affects survival skills of businesses in economic competition. In this study, where qualitative research methods were used, data were obtained through semi-structured interviews with 40 micro- and small business owners, most of whom are second and third generations, operating in Antakya Long Bazaar, and three managers in charge of the management of Long Bazaar. Interviews were recorded with a voice recorder and note-taking technique. After transcription of voice recordings, the researchers coded and categorized the raw data and obtained themes and subthemes. Obtained data were analyzed with MAXQDA 20 software. In line with the performed qualitative analysis, responses of owner-managers were categorized in trust, trust promoting mechanisms (establishments, norms, and sanctions), network participation, collective action and cooperation, and learning aspects of SC. Questions on identification of variables and structural characteristics, which are prominent in determination of SC, were addressed to managers in charge of the management of Long Bazaar, thereby revealing the situation pertaining to the general structure.

This chapter is focused in a methodological frame to study the practices of entrepreneurial agents and the startups in nontechnological sectors in the middle-income countries. The startup of ideas involves three phases that comprise the first life cycle of a possible company considering too sociocultural aspects as external factors implied in the creation, prototype, and entry to markets. In Latin America, the type of risks experienced by companies in their early stages of life and incubation are not known in a timely manner. The lack of information on entrepreneurship and its agents in countries such as Mexico also inhibits visualization of heterogeneity of contexts to business development, and how some regions are more propensity to boost startups than others, in different sectorial and branches of knowledge. Mexico like rest countries in Latin America has a high percentage of SMEs focused in sectors that are innovative but not are participating in the last technological waves. For this reason, it is necessary to know how these agents prepare, manage, and apply entrepreneurship in accordance with institutional, technological, and sociocultural dispositions to structure their experiences and make more vigorous the territorial entrepreneurial. Small and medium businesses are building new paths taking advantage of territorial and cultural opportunities. Applying the framework proposed in the last part of this chapter is presented a case of study of an entrepreneur oriented to craft brewer production in Tijuana, Mexico.