Challenges and Approaches to Capturing Sustainable Value in the Food Industry: A Study of Sustainable Entrepreneurship in Sweden

Abstract: The purpose of this study is to investigate what challenges sustainable entrepreneurs in the food industry face when capturing value and how they aim to overcome them. To that end, we develop a theoretical framework based on relevant literature on sustainable entrepreneurship, entrepreneurial studies and environmental science. Furthermore, we conducted nine case studies, drawing from semi-structured interviews to founders and CEOs, of startups with sustainable marketing claims in the Swedish food industry. The results illustrate how sustainable entrepreneurs create value, where one major trend is the creation of sustainable value using waste or excess resources. Moreover, the findings confirm that it is challenging to successfully capture value when producing sustainable value. Three major challenges identified are that the market for sustainability is a niche market; the growth aspirations of sustainable entrepreneurs can interfere with the necessity to scale up; and that institutions might hamper innovative business ideas. Consequently, our paper identifies four main approaches to capture value: Co-creation with bigger firms to leverage resources and share risks; business model innovations on how to capture value; a shift of mindset to acknowledge business growth as a necessity; and involvement with institutions and networks to shape the possibilities in the market. Lastly, we set forth theoretical and practical implications for practitioners and future studies.