How Business Idea Fit Affects Sustainability and Creates Opportunities for Value Co-Creation in Nascent Firms

Gian Luca Casali, Mirko Perano, Andrea Moretta Tartaglione and Roxanne Zolin
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Gian Luca Casali: School of Management, Queensland University of Technology, Brisbane City QLD 4000, Australia
Mirko Perano: Department of Management, Reald University College, Vlorë 9400, Albania
Andrea Moretta Tartaglione: Department of Economics and Law, University of Cassino and Southern Lazio, Cassino FR 03043, Italy
Roxanne Zolin: Australian Institute of Business, Adelaide SA 5000, Australia

Sustainability, 2018, vol. 10, issue 1, 1-15

Abstract: 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.

Keywords: business idea; nascent business sustainability; value co-creation; S-D logic (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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