Do Startups and Incumbents Differ on Reasons for Entering Into Green Industries?

By Jeffrey York and Michael Lenox

Scholars and policy makers have long posited that new industries that produce environmentally beneficial products are a critical component of environmental sustainability. New firms may foster products and services that enable environmentally friendly practices, while existing firms may shift their product lines in response. Yet, we know little about the drivers for entry into emerging green industries. Are the drivers different for startups and established companies? Do economic, political, or cultural environmental factors matter more?

In “Exploring the Sociocultural Determinants of De Novo versus De Alio Entry in Emerging Industries” we explore these questions by examining how the economic, political, and sociocultural environment differentially influences entry by new versus incumbent firms in the green building supply industry from 2000 to 2007.

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