Research Article

Social responsibility in new ventures: profiting from a long-term orientation

  1. Taiyuan Wang1,*,
  2. Pratima Bansal2

Article first published online: 22 FEB 2012

DOI: 10.1002/smj.1962

Issue

Strategic Management Journal

Strategic Management Journal

Volume 33, Issue 10, pages 1135–1153, October 2012

Additional Information

How to Cite

Wang, T. and Bansal, P. (2012), Social responsibility in new ventures: profiting from a long-term orientation. Strat. Mgmt. J., 33: 1135–1153. doi: 10.1002/smj.1962

Author Information

  1. 1

    IE Business School, Madrid, Spain

  2. 2

    Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada

*IE Business School, C/Alvarez de Baena, 4, Madrid, 28006, Spain.

Publication History

  1. Issue published online: 10 AUG 2012
  2. Article first published online: 22 FEB 2012
  3. Accepted manuscript online: 15 FEB 2012 09:28AM EST
  4. Manuscript Revised: 7 FEB 2012
  5. Manuscript Received: 8 JUL 2010

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Keywords:

  • long-term orientation;
  • corporate social responsibility;
  • new ventures;
  • financial performance

Abstract

Socially responsible activities help create business value, develop strategic resources, and insure against risks, but also cost money and distract management. These prior findings are mainly based on established corporations and may not extend to new ventures in which the liability of newness may suppress some positive effects and amplify some negative impacts of socially responsible activities. New ventures whose strategic decisions have a long-term orientation, however, are able to counteract their liability of newness and thereby generate net positive economic returns. We tested these relationships by surveying the chief executive officers and presidents and studying the signature Web sites of 149 new ventures. Copyright © 2012 John Wiley & Sons, Ltd.

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