Sustainability orientation and firm growth as ventures mature

Abstract This article revisits the dilemma between sustainability orientation and a firm's growth along the stages of the entrepreneurial process. We draw upon the recent research on sustainable entrepreneurship to determine whether entrepreneurial ventures can pursue sustainability objectives and still grow in terms of turnover and employment. Based on the data of 2 370 firms, we conclude that the relationship between sustainability orientation and a venture's growth is not straightforward. The results show that the stage of the entrepreneurship life cycle matters and that only the introduction of sustainability objectives in the mature stage of the entrepreneurial process (rather than during the early stage) significantly increases the likelihood of such ventures growing. We also find empirical evidence against combining environmental and social dimensions under one umbrella of sustainability, as each of these dimensions demonstrated distinctive behavior in our models. While our results show the importance of innovation for the firm's growth, it is not evident that it exerts any significant moderation effect on the relationship between sustainability orientation and a venture's growth. These findings provide insightful evidence for policymakers about the intrinsic difficulty of reconciling sustainability and economic objectives at the early stages of the process of entrepreneurship and also about the need to differentiate the multiple meanings and forms of sustainability orientation.