How Business Idea Fit Affects Sustainability and Creates Opportunities for Value Co-Creation in Nascent Firms
Gian Luca Casali
1
School of Management, Queensland University of Technology, Brisbane City QLD 4000, Australia
2
Department of Management, Reald University College, Vlorë 9400, Albania
3
Department of Economics and Law, University of Cassino and Southern Lazio, Cassino FR 03043, Italy
4
Australian Institute of Business, Adelaide SA 5000, Australia
*
Authors to whom correspondence should be addressed.
Sustainability 2018, 10(1), 189; https://doi.org/10.3390/su10010189
Received: 25 November 2017 / Revised: 4 January 2018 / Accepted: 10 January 2018 / Published: 14 January 2018
(This article belongs to the Special Issue Social Innovation and Value Co-Creation: Finding the Strategic Link in Business Management towards Sustainability)
A well-defined business idea is essential for nascent business sustainability in the future. The business idea must fit firm knowledge and resources to a profitable business opportunity. This work adopts the framework of value co-creation, strongly related to the service-dominant logic paradigm. We ask how does business idea fit affect new venture sustainability and create opportunities for value co-creation. We propose that a business idea that lacks fit is less sustainable, but it could create opportunities for value co-creation. This study develops and validates an empirically grounded taxonomy of business idea fit based on 729 Australian nascent firms using quantitative data generated from the results of a large study called CAUSEE (Comprehensive Australian Study of Entrepreneurial Emergence). A cluster analysis is used to identify distinct patterns of business idea fit. The empirical taxonomy developed in this study found four distinct clusters of firms, which were distinguished by the fit of their new business idea to knowledge, resources and market profitability: very good fit, low knowledge fit, low profit fit and low fit. Results show how these different patterns of fit create opportunities for value co-creation to create business future sustainability.
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MDPI and ACS Style
Casali, G.L.; Perano, M.; Moretta Tartaglione, A.; Zolin, R. How Business Idea Fit Affects Sustainability and Creates Opportunities for Value Co-Creation in Nascent Firms. Sustainability 2018, 10, 189.
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