Challenges in sustainability transitions in B2B firms and the role of corporate entrepreneurship in responding to crises created by the pandemic

Abstract

The global emphasis on promulgating sustainable business operations has made it imperative for B2B firms to transition toward sustainability, but these firms' efforts seem to have been affected unduly by the COVID-19 pandemic. There is little understanding of sustainability transition-related challenges that firms may have, or are continuing to face, in the wake of the "new normal" business environment created by the pandemic-related disruptions and these firms' responses thereof. We address this gap by investigating the role of corporate entrepreneurship (CE) as a panacea for such challenges, driven by past indications on CE's viability as a strategy for promoting transitions toward sustainability. Using a longitudinal qualitative research design, we collected data via Prolific Academic from 53 participants based in multiple countries through open-ended essays over two months. Analyzing the data following the Gioia method, we find three main challenges affecting B2B firms' sustainability transitions: (a) knowledge management, (b) stakeholder support, and (c) resource constraints. Five CE and strategic choice-related factors are found to vitally facilitate sustainability transitions and assist firm employees in overcoming the identified challenges. The findings highlight important implications for B2B organizations, emphasizing the need to integrate entrepreneurial activities with sustainability initiatives and prompting further research on resource optimization, knowledge dissemination, and stakeholder education to enhance sustainability awareness.