Humane Entrepreneurship and Innovation

In this chapter, the authors review the concept of sustainable entrepreneurship and how it has evolved with increasing concerns about the environmental and social impact of business firms. The authors offer a background to the emergence of sustainability issues in the field of entrepreneurship research, and review a number of influential approaches to entrepreneurship that in various combinations address the relationships between the economic, environmental, and social dimensions of business. The authors further suggest three levels at which entrepreneurs can understand and assess their approach to sustainable entrepreneurship, highlight how the issue of sustainable entrepreneurship applies equally to startups and already established corporations, and in the conclusions point toward the emergence of humane entrepreneurship as a critical posture for entrepreneurship in the 21st century.

The relationship between entrepreneurship and ethics explores dimensions that entrepreneurs should consider to face ethical dilemmas. One of the controversial points in this relationship is the human complexity and the balance between ethics and profit that characterize the decisions. The external pressure and the scarcity of the resources create entrepreneurs' ethical challenges impacting on strategic and governance decisions from which value should be obtained. Therefore, the nexus between entrepreneurship and ethics should be investigated to understand possible ways to leverage human values in the entrepreneurial actions. To this aim a bibliometric analysis has been carried out and Citespace, VOSviewer and Bibliometrix software have been used. Data have been extracted from Web of Science database in the timespan 1986–2023 generating 583 documents. The analysis shows the current literature published on the relationship between entrepreneurship and ethics by highlighting the main authors, (co)citations, countries, and journals that published papers on the topic. The findings from the four research questions defined shown that the top author publishing on the topic is Prof. Dr Fassin Yves. The most cited scholar is Prof. Spence Laura J. It was also found that the Journal of Business Ethics has the most publications on the topic. The top countries to publish articles on the topic are USA and UK. Five clusters have been found by grouping the main actors, countries and relevant research themes. The cluster on social entrepreneurship research is the main representative the topic. Limitations and future research have been discussed.

The contemporary dialog surrounding social and environmental crises has strengthened the call for a reconsideration of the capitalist economic system, prompting a reimagining of businesses’ societal roles. This chapter explores the shifting terrain of corporate purpose as a driving force for positive societal change, challenging the traditional shareholder primacy doctrine.

After examining influential theoretical frameworks shaping the discourse on corporate purpose, this research unveils the results of an empirical investigation inspired by the 2019 American Business Roundtable’s (BRT) statement on corporate purpose, where numerous prominent American CEOs advocated for a shift toward a stakeholder-oriented approach. In our exercise, the authors employ semantic and cognitive linguistic analyses to measure the coherence between the language in the BRT statement and the content of sustainability reports. This approach aims to offer insights into the alignment or divergence between corporate declarations and actual practices concerning corporate purpose.

Empirical findings reveal that corporations emphasizing their purpose in sustainability reports using language resembling that of the BRT statement tend to demonstrate lower implementation scores. Conversely, implementors lean toward using language in sustainability reports that diverges from the BRT statement. These findings suggest a potential disconnection between stated purpose and actual implementation in companies emphasizing corporate purpose in their reports.

The study research contributes theoretical insights by exploring how corporations can incorporate purpose-driven practices to promote sustainable growth and societal well-being. It underscores the potential for businesses to play a pivotal role in reshaping the economic landscape and advocates for ongoing research in humanistic management models.

While the entrepreneurship literature historically supported the idea that the center and finality of the research is the entrepreneur or the entrepreneurial firm, current developments highlight the importance of the context in which the entrepreneur or the entrepreneurial firm operates. This modern view challenges how the entrepreneurship field has been evolved and illustrates the transformation of the research that calls for an accurate overview of where the entrepreneurship field is going. This chapter aims at providing the historical evolution of the field of entrepreneurship by highlighting the state of the art, the main theories, the research gaps, the trends, the current research discussion, and where the field of entrepreneurship is going. Thanks to this historical view, scholars could learn of the origins of the field, how the research discussion has been evolved and how some popular trends appear or disappear and therefore find some research directions and a future research agenda for the future of entrepreneurship.

This chapter introduces the new expanded strategic posture for entrepreneurship in the XXI century, defining the Humane Entrepreneurship (HumEnt). HumEnt is conceived as a framework to capture what is happening in the present-day landscape. In particular, HumEnt focal dimension is represented by a strategic posture called Humane Entrepreneurial Orientation that is able to capture the Entrepreneurial Orientation (EO), the Sustainability Orientation (SO), and the Humane Resource Orientation (HRO) of the firm. After a discussion on the theoretical basis of HumEnt, the chapter concludes with the identification of four different types of HumEnt firms.

Although Humane Entrepreneurial Orientation (HEO) represents the focal dimension in Humane Entrepreneurship (HumEnt) theory and has been understood in two different ways, empirical evidence in the realm of business on this construct is severely lacking. The goal of this chapter is to perform an empirical assessment of HEO measurement having the aim of categorizing the types of enterprises that emerge from HumEnt theory. To these ends, a questionnaire with items designed to capture HEO components was developed, and a survey among entrepreneurs located in Italy was administered to provide a basis for an exploratory factor analysis. Results demonstrated that HumEnt enterprises are no longer invisible, and a novel way to identify them has been proposed. Theoretical and practical implications are formulated consequentially to the first step along the HEO measurement scale empirical assessment.

In the current context of increasing awareness about dramatic societal challenges, a growing number of businesses, including both small enterprises and large corporations, are increasingly embracing more socially oriented behaviors and aligning their innovative strategies and business models to address specific societal needs. Widespread expectations toward more inclusive and sustainable forms of entrepreneurship are determining the need to prioritize objectives toward individuals, society, and stakeholders, beyond mere profit. This study advocates a human-centered perspective in entrepreneurial theory, recognizing human capital’s relevance in the contemporary economic landscape.

Employing a qualitative approach, the authors investigated 17 Italian innovative start-ups with a strong social orientation. Through the Gioia methodology, the authors examined the antecedents of three dimensions within the humane entrepreneurship framework – Sustainable Orientation, Entrepreneurial Orientation, and Human Resources Orientation – and their role in fostering Humane Entrepreneurial Orientation. Innovative start-ups’ outcomes reveal that three antecedents – namely, prior engagement in voluntary activities, connections within the local community, and adept relational skills – exert influence on the development of humane entrepreneurship.

Global environmental and social threats challenge humans’ well-being and the survival of posterity. Industry 4.0 (I4.0) transformed the industry sector, enabling process automation and scalability, increasing manufacturers’ productivity, efficiency, and profitability, and supporting manufacturing innovation and firms’ competitive advantage. Despite this, the I4.0 paradigm, as currently conceived, does not fit for purpose in the context of the climate crisis and planetary emergency, nor does it address deep social tensions.

Therefore, a new revolution focusing on human and environmental needs is strongly required to address society’s economic and social problems. Combining digitalization and social purposes may address local, national, and international issues by involving a human-centered perspective in traditional business-oriented entrepreneurship.

Depending on the above, this chapter provides an in-depth understanding of Digital Entrepreneurship (DE), Digital Social Entrepreneurship (DSE), and how entrepreneurs may employ digital technologies to reach business and social aims.

Entrepreneurial mindsets differ in diverse cultural contexts affecting the perceptions of business opportunity as well as the strategic posture and how to network to successfully implement it. For example, many scholars have shown that risk taking and proactiveness (i.e., characteristics of the strategic posture) are affected by cultural characteristics. The aim of the chapter is to shed light on the relationship between socio-cultural practices (using the GLOBE cultural theoretical framework) and entrepreneurial behavior understanding how culture may foster or hinder the entrepreneurial mindsets. The authors discuss how certain cultural dimensions may be linked to various aspects of entrepreneurial mindsets. Furthermore, the authors make some reflections with regard to the contextual conditions shaped by cultural factors that seem to be the most appropriate to spread the Humane Entrepreneurship Model.

This chapter explores the impact of Entrepreneurial Orientation (EO), Sustainable Orientation (SO), and Human Resource Orientation (HRO) – the key dimensions of the strategic posture known as Humane Entrepreneurship – on the success of 142 equity crowdfunding campaigns hosted on the US-based platform WeFunder. Utilizing text analysis in conjunction with fuzzy set qualitative comparative analysis, a configurational research method, the study identifies diverse combinations of these dimensions that lead to successful funding outcomes. The analysis, encompassing both minimum and maximum funding targets and supplemented by robustness tests, indicates that successful equity crowdfunding campaigns are characterized by pitches displaying high levels of autonomy, innovativeness, proactiveness, and risk-taking, with a lesser focus on competitive aggressiveness. It is also observed that campaigns emphasizing HRO consistently achieve their fundraising goals, independent of the funding target set. Notably, a startup’s SO does not seem to significantly influence campaign success within the equity crowdfunding context.