Modelling the Entrepreneur’s Decision on Which Practice Use to Create Sustainable Businesses

Abstract

We have examined how the constructs influencing the entrepreneur’s election of the practice to design and test new sustainable business models connect with their use of such eco-innovation practices. We present a comprehensive model aiming at explaining the use of experimentation practices by entrepreneurs, based on an empirical analysis of a sample of Spanish entrepreneurs (N=234). Using the PLS-SEM algorithms and a sound behavioral model, we modeled eleven constructs (Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, Habit, Costs, Speed, Funding, Security and Behavioral Intention). Out of them, only three (Effort Expectancy, Hedonic Motivation, and Behavioral Intention) are meaningful; they explain 73% of the variance of the actual use of an eco-innovation practice and its associated experiments to build sustainable business models. Our results are relevant for entrepreneurs, mentors, educators, investors and public administrations as entrepreneurs might be considering only the easiest and more enjoyable innovation practices, independent if they are in line with sustainable objectives."