Entrepreneurial Framework Conditions and Impact Scores of Small-Size Certified Benefit Corporations (CBCs). A Configurational Analysis of 17 Countries
Abstract
:1. Introduction
2. Theoretical Framework
2.1. Context of Analysis and Outcome of Interest: Certified B Corporations (CBCs) and Their Generation of Positive Impacts
2.1.1. The Emergence of CBCs. Main Characteristics and Relationship with Sustainable Entrepreneurship
2.1.2. Impact Generation of CBCs
2.1.3. Struggles Faced by CBCs
2.2. Specific Entrepreneurial Framework Conditions Relevant for Promoting Small-Size CBCs Impact Generation
2.2.1. Heterogeneity of Entrepreneurial Framework Conditions and Its Associated Outcomes. Institutional Theory and Varieties of Capitalism Perspectives
2.2.2. Entrepreneurial Finance
2.2.3. Government Policies: Taxes and Bureaucracy
2.2.4. R&D Transfer
2.2.5. Commercial and Legal Infrastructures
3. Methodology
3.1. Sample and Measures
3.2. Method of Analysis: Fuzzy-Set Qualitative Comparative Analysis (fsQCA)
4. Results
Results of the Analysis of Sufficiency
- Configuration 1a (Germany and Canada): a high level of support for SMEs in the form of financing for entrepreneurs, R&D transfer and commercial and legal infrastructures was sufficient for the presence of a high average impact score of small-size CBCs in the country.
- Configuration 1b (Spain): a high level of support for SMEs in the form of taxes and bureaucracy, R&D transfer and commercial and legal infrastructures was sufficient for the presence of a high average impact score of small-size CBCs in the country.
- Configuration 2a (United Kingdom and Chile): a low level of support for SMEs in the form R&D transfer and commercial and legal infrastructures, together with a high level of support through taxes and bureaucracy, were sufficient for the absence of a high average impact score of small-size CBCs in the country.
- Configuration 2b (Italy): a low level of support for SMEs in the form of financing for entrepreneurs, taxes and bureaucracy and commercial and legal infrastructures, together with a high level of support through R&D transfer, were sufficient for the absence of a high average impact score of small-size CBCs in the country.
5. Discussion and Conclusions
5.1. Comparative Discussion of Combinations Sufficient for the Presence (1a, 1b) or the Absence (2a, 2b) of a High Average Impact Score of Small-Size CBCs in the Country
5.2. Implications for Policymakers
5.3. Implications for Managers of Small-Size Firms That Aim to Generate Positive Impacts at the Social, Environmental and/or Governance Level
5.4. Limitations, Suggestions for Future Research and Conclusion
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Impact Pillar | B Impact Assessment Description |
---|---|
Community | “Evaluates a company’s supplier relations, diversity, and involvement in the local community. It also measures the company’s practices and policies around community service and charitable giving, including whether a company’s product or service is designed to solve a social issue, such as access to basic services, health, education, economic opportunity and the arts.” |
Workers | “Assesses the company’s relationship with its workforce. It measures how the company treats its workers through compensation, benefits, training and ownership opportunities provided to workers. The category also focuses on the overall work environment within the company by assessing management/worker communication, job flexibility, corporate culture, and worker health and safety practices.” |
Customers | “Measures the impact a company has on its customers by focusing on whether a company sells products or services that promote public benefit and if those products/services are targeted toward serving underserved populations. The section also measures whether a company’s product or service is designed to solve a social or environmental issue (improving health, preserving environment, creating economic opportunity for individuals or communities, promoting the arts/sciences, or increasing the flow of capital to purpose-driven enterprises).” |
Environment | “Evaluates a company’s environmental performance through its facilities, materials, emissions, and resource and energy use. Companies answer questions about their transportation/distribution channels and the environmental impact of their supply chain. The assessment also measures whether a company’s products or services are designed to solve an environmental issue, including products that aid in the provision of renewable energy, conserve resources, reduce waste, promote land/wildlife conservation, prevent toxic/hazardous substance or pollution, or educate, measure or consult to solve environmental problems.” |
Governance | “Evaluates a company’s overall mission, ethics, accountability and transparency. It measures whether the company has adopted a social or environmental mission, and how it engages its employees, board members and the community to achieve that mission. This section assesses employee access to financial information, customers’ opportunities to provide feedback, and the diversity of the company’s governing bodies.” |
Entrepreneurial Framework Conditions | Global Entrepreneurship Monitor Definition |
---|---|
Financing for entrepreneurs | The availability of financial resources—equity and debt—for small and medium enterprises (SMEs) (including grants and subsidies). |
Government policies: taxes and bureaucracy | The extent to which public policies support entrepreneurship—taxes or regulations are either size-neutral or encourage new and SMEs. |
R&D transfer | The extent to which national research and development will lead to new commercial opportunities and is available to SMEs. |
Commercial and legal infrastructures | The presence of property rights, commercial, accounting and other legal and assessment services and institutions that support or promote SMEs. |
CBCs (1–9 Employees) | CBCs (10–49 Employees) | Overall Country | Entrepreneurial Framework Conditions | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Country | Number of Firms | Average Impact Score | Number of Firms | Average Impact Score | Number of Firms | Average Impact Score | FIN | TAX | TRA | INF |
Australia | 94 | 89.76 | 95 | 89.18 | 189 | 89.47 | 3.10 | 2.70 | 2.52 | 3.09 |
Brazil | 44 | 97.91 | 55 | 93.78 | 99 | 95.62 | 2.93 | 1.87 | 2.25 | 2.82 |
Canada | 118 | 95.37 | 91 | 95.41 | 209 | 95.39 | 3.16 | 2.76 | 2.66 | 3.22 |
Chile | 45 | 92.04 | 38 | 93.32 | 83 | 92.62 | 2.42 | 2.85 | 2.41 | 2.70 |
Colombia | 19 | 90.03 | 18 | 98.62 | 37 | 94.21 | 2.23 | 2.16 | 2.35 | 2.52 |
Germany | 14 | 91.66 | 15 | 98.17 | 29 | 95.03 | 3.13 | 2.64 | 2.89 | 3.59 |
India | 1 | 91.90 | 2 | 102.95 | 3 | 99.27 | 3.37 | 3.05 | 3.15 | 3.34 |
Italy | 39 | 90.78 | 44 | 91.70 | 83 | 91.27 | 2.80 | 2.18 | 2.90 | 2.98 |
Netherlands | 34 | 92.69 | 35 | 89.88 | 69 | 91.27 | 3.64 | 3.25 | 3.22 | 3.58 |
South Korea | 6 | 90.48 | 5 | 92.30 | 11 | 91.31 | 2.92 | 1.85 | 2.43 | 3.02 |
Spain | 6 | 90.38 | 8 | 91.86 | 14 | 91.23 | 3.02 | 2.81 | 2.63 | 2.73 |
Sweden | 24 | 95.43 | 14 | 90.52 | 38 | 93.62 | 3.00 | 3.10 | 3.24 | 3.58 |
Switzerland | 2 | 82.20 | 1 | 80.40 | 3 | 81.60 | 3.07 | 2.37 | 2.66 | 3.13 |
Taiwan | 16 | 90.46 | 13 | 90.35 | 29 | 90.41 | 3.24 | 3.51 | 3.58 | 3.57 |
United Kingdom | 9 | 93.46 | 11 | 92.82 | 20 | 93.11 | 3.27 | 3.20 | 3.19 | 3.34 |
United States | 130 | 92.22 | 126 | 91.10 | 256 | 91.67 | 3.13 | 3.05 | 2.42 | 3.01 |
Calibration Thresholds | Descriptive Statistics of the Sample | ||||||
---|---|---|---|---|---|---|---|
Condition | Fully Inside | Maximum Ambiguity | Fully Outside | Max | Min | Mean | Standard Deviation |
OVE | 96.90 | 92.62 | 87.89 | 99.27 | 81.60 | 92.45 | 3.69 |
FIN | 3.53 | 3.10 | 2.38 | 3.64 | 2.23 | 3.05 | 0.35 |
TAX | 3.34 | 2.81 | 1.87 | 3.51 | 1.85 | 2.73 | 0.49 |
TRA | 3.36 | 2.66 | 2.33 | 3.58 | 2.25 | 2.78 | 0.38 |
INF | 3.58 | 3.13 | 2.66 | 3.59 | 2.52 | 3.15 | 0.34 |
Model 1. Presence of High Level of Impact. | Model 2. Absence of High Level of Impact. | |||
---|---|---|---|---|
Condition | 1a | 1b | 2a | 2b |
FIN_RD | ● | ◦ | ◦ | |
TAX_RD | ◦ | ● | ● | ◦ |
TRA_RD | ● | ● | ◦ | ● |
INF_RD | ● | ● | ◦ | ◦ |
Raw Coverage | 0.291 | 0.293 | 0.381 | 0.324 |
Unique coverage | 0.083 | 0.086 | 0.174 | 0.117 |
Consistency | 0.817 | 0.874 | 0.885 | 0.881 |
Solution coverage | 0.377 | 0.498 | ||
Solution Consistency | 0.838 | 0.901 | ||
Frequency Cutoff | 1.000 | 1.000 | ||
Consistency Cutoff | 0.817 | 0.881 |
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Ruozzi, A.; Vicente, J.A. Entrepreneurial Framework Conditions and Impact Scores of Small-Size Certified Benefit Corporations (CBCs). A Configurational Analysis of 17 Countries. Sustainability 2021, 13, 7297. https://doi.org/10.3390/su13137297
Ruozzi A, Vicente JA. Entrepreneurial Framework Conditions and Impact Scores of Small-Size Certified Benefit Corporations (CBCs). A Configurational Analysis of 17 Countries. Sustainability. 2021; 13(13):7297. https://doi.org/10.3390/su13137297
Chicago/Turabian StyleRuozzi, Alberto, and Jose Antonio Vicente. 2021. "Entrepreneurial Framework Conditions and Impact Scores of Small-Size Certified Benefit Corporations (CBCs). A Configurational Analysis of 17 Countries" Sustainability 13, no. 13: 7297. https://doi.org/10.3390/su13137297