Purpose: The purpose of this paper is to identify the role intermediaries can play in an small to medium‐sized enterprise's (SME's) pursuit for corporate sustainability with a focus on eco‐innovation. The research identifies drivers and barriers for eco‐innovation, and highlights effects induced through collaboration between SMEs and local authorities, on the one hand, and consultancies, on the other.Design/methodology/approach: This paper is based on an exploratory qualitative interview study among German SMEs of the metal and mechanical engineering industry that have participated in “Ecoprofit”, an intermediary based program that aims at introducing organizations to the concept of sustainable development through implementation of eco‐innovations.Findings: The key findings are that first, the proactive approach by a public intermediary (here local authority) is one essential push factor to trigger eco‐innovations in SMEs with low absorptive capacity. Second, it is found that SMEs may need facilitation for eco‐innovation from different types of intermediaries (public and private) with different levels of support, which can range from customized and individual to more loosely held support, such as networks.Originality/value: This study discusses the challenges of corporate sustainability with a focus on eco‐innovations for SMEs and proposes a “complex intermediary” consisting of a local authority and consultancies as one means to engage SMEs in sustainability. Moreover, it focuses on SMEs in the B2B context, organizations that are often overlooked despite their vast impact. Furthermore, by using a single industry approach, in‐depth findings for the metal and mechanical engineering industry are presented.

Small and medium-sized enterprises (SMEs) play an important role for growth and sustainable development, particularly for rural areas in which MNCs are absent. Despite this link, there is little systematic research that investigates how SMEs address the particularities, opportunities, and challenges of rural areas based on their strengths and weaknesses. To fill this gap, this article uses a systematic literature review (SLR) that analyses 228 articles published between 2003 and October 2020. Our descriptive analysis shows that research on this topic has increased over time. Based on our thematic results, we juxtapose typical strengths and weaknesses of SMEs (enterprise perspective) and the opportunities and challenges of rural areas (spatial perspective). A key finding is that SMEs use relation-based collaboration as a meta-strategy to respond to these specific conditions. Wedding the theoretical perspectives of the RBV and transaction cost economics, we develop a conceptual model that explains why rural SMEs are in a particular need and position to use collaboration as a tool to innovate and access critical resources in otherwise resource-scarce rural areas. We then discuss how digitalization impacts our results regarding SMEs in rural space.

This article documents the results of a research workshop bringing together six perspectives on social entrepreneurship. The idea was to challenge existing concepts of the economy, the firm, and entrepreneurship in order to shed new light on social entrepreneurship and on our existing theoretical frameworks. The first two contributions use a macro-perspective and discuss the notion of adaptive societies and the tragedies of disharmonization, respectively. Taking a management perspective, the next two focus on the limits of conventional assumptions in management theory, particularly human capital theory and resource-based view. The final two contributions follow an entrepreneurship perspective highlighting the usefulness of mobilization theory and the business model lens to social entrepreneurship. Despite this diversity, all contributions share the fact that they challenge narrow definitions of the unit of analysis in social entrepreneurship; they illustrate the aspect of social embeddedness, and they argue for an open-but-disciplined diversity of theories in social entrepreneurship research.

This article develops a Hayekian perspective on social franchising that distinguishes between the end-connected logic of the small group and the rule-connected logic of the big group. Our key claim is that mission-driven social entrepreneurs often draw on the small-group logic when starting their social ventures and then face difficulties when the process of scaling shifts their operations toward a big-group logic. In this situation, social franchising offers a strategy to replicate the small group despite systemwide scaling, to mobilize decentrally accessible social capital, and to reduce agency costs through mechanisms of self-selection and self-monitoring. By employing a Hayekian perspective, we are thus able to offer an explanation as to why social franchising is a suitable scaling strategy for some social entrepreneurship organizations and not for others. We illustrate our work using the Ashoka Fellow Wellcome.