Once a technology establishes a user base, network effects become pivotal in reinforcing its position. These effects create a self-reinforcing cycle, where increased adoption enhances the technology’s value, discouraging the adoption of superior alternatives that struggle to achieve similar traction. Similarly, sustainable entrepreneurs developing innovative business models can overcome competitive disadvantages, such as higher financial costs or the absence of complementary assets like established retail networks. By leveraging network effects and strategically positioning their offerings, these entrepreneurs can secure a foothold in the market and drive sustainable growth. However, fundamental success factors must not be overlooked. As Teece (1986) argues, innovation alone is insufficient to ensure success. The ownership or access to complementary assets, such as production facilities, marketing channels, or distribution networks, is crucial. These assets allow innovators to convert ideas into profits, prevent imitators from gaining an advantage, and sustain a competitive edge in the market. Governments can play a vital role in this process by not only supporting R&D but also fostering the development of complementary assets, including infrastructure and industryspecific resources, to create an enabling environment for innovators. 7.6 Conclusion In conclusion, entrepreneurial behaviour and innovation are powerful drivers of sustainability, offering pathways to address the complex interplay between environmental, social, and economic priorities. Entrepreneurs play a pivotal role in overcoming the inherent trade-offs between profitability and long-term sustainability by leveraging innovative strategies such as sustainable business modelling, system innovation, and circular economy practices. Effective approaches, such as integrating ecological, social, and economic considerations early in the design process, highlight the value of frameworks like Safe and Sustainable by Design (SSbD). These methods enable businesses to align product development with sustainability objectives, enhancing both market relevance and environmental responsibility. Similarly, circular business models, ranging from product life extension to design for recycling, illustrate how entrepreneurial initiatives can foster resource efficiency and reduce environmental impact. However, the journey towards sustainable business practices is not without challenges. Entrepreneurs must navigate barriers such as limited access to complementary assets and the competitive disadvantages of adopting sustainability-driven innovations. Addressing these issues requires strategic alignment, leveraging network effects, and fostering an enabling environment through supportive policies and infrastructure. Ultimately, the synergy between entrepreneurial behaviour, innovation, and sustainability offers a blueprint for businesses to not only survive but thrive in a future defined by environmental and social responsibility. In this respect, leadership plays an important role and will be discussed in the following chapter. 42 7.6 Conclusion
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