From Paradoxical Thinking to Practicing Sustainable Business: The Role of a Business Collective Organization in Supporting Entrepreneurs

Abstract

Individual entrepreneurs committed to sustainability experience paradoxes: interdependencies and conflict between social, environmental, and economic goals. Whereas prior research focuses on direct responses to paradoxes, we examine multi-level dynamics between organizations and individuals in responding to sustainability paradoxes. Using a 20-month qualitative field study of sustainable food entrepreneurs in Detroit, we investigated how a business collective organization, FoodLab, enabled entrepreneurs to move from paradoxical thinking to practicing sustainable business. Our findings suggest that while individuals may struggle to address multiple goals of sustainability alone, business collective organizations provide a coordinating mechanism that amplifies their efforts. Through guardrails that facilitate the co-creation of shared resources for members, organizations can minimize cognitive and practical barriers of sustainable entrepreneurship.