Purpose: The aim of this research is to investigate the relationship between (dual) organizational identity and individual heuristics – simple rules and biases – in the process of strategy change. This paper offers a theory on identity reflexivity as a cognitive mechanism of strategy change in the context of organizational hybridity. Design/methodology/approach: The authors draw on a 2-year ethnographic study at a Dutch social housing association dealing with the process of strategy change. The empirical data comprises of in-depth semi-structured interviews, ethnographic observations as well as secondary sources. Findings: Conflicting identities at the organizational level influence heuristics at the individual level, since members tend to identify with their department's identity. Despite conflicting interpretations, paths of cognitive shortcuts – that the authors define as internal and external identity reflexivity – are shared by the conflicting identities. Research limitations/implications: The findings of this research are subject to limitations typical of a qualitative case-study, such as possibly being context dependent. The authors argue that this research contributes to the understanding of how individual heuristics relate to organizational heuristics, and suggest that the process of identity reflexivity can contribute to the alignment of conflicting identities enabling strategy formation in the context of a dual-identity organization. Practical implications: Understanding how managers with conflicting identities achieve agreements is important to help organizational leaders to pursue sustainability-oriented strategy change. Social implications: Given the pressure experienced by mission-driven organizations to integrate multiple sustainability demands in their mission, understanding managers' decision-making mechanism when adapting to new, often conflicting, sustainability demands is important to accelerate societal sustainability transitions. Originality/value: This paper addresses the process of new strategy design in the context of a socially driven business. This context fundamentally differs from the one addressed by the existing heuristics literature with respect to organizational environment and role, and specific competing demands.

Hybrid organisations face competing demands, such as the need for financial viability versus the solving of environmental or social problems. Paradox theory is increasingly used to explore how organisations striving for sustainability manage these tensions. Via action research and an abductive approach in the setting of a Dutch housing association, we analyse how managers take decisions when faced with sustainability paradoxes in the process of strategy change. With this paper, we offer two main contributions. Firstly, we identify the types of paradoxes emerging while designing and implementing a new sustainable strategy. Secondly, we propose a theory on the freezing effects of sustainability paradoxes on the decision making process. We conclude that, although the understanding of sustainability paradoxes can activate strategic change, they can also feed inertia while freezing decision making due to the conflicting identities characterising hybrid organisations.

In a time when the global economy continues to stutter, social justice and climate change mitigation simultaneously increase in urgency and complexity. In this context,existing organisations are put under pressure to display sustainable entrepreneurial behaviour,transforming their strategy to meet new social and environmental goals. This paper analyses the process of sustainable entrepreneurship in the context of existing hybrid organisations. We conducted extensive fieldwork at a Dutch housing association in transition. The case organisation set an ambitious climate mitigation target to be achieved by 2030 inducing a chain of organisational changes. At the same time, the strategy department is also dealing with a number of social challenges, among which a worrying increase of poverty, an ageing target group, and a rising refugees’ requests for housing. We offer a set of new propositions to underpin the mechanism fostering and contrasting the sustainable entrepreneurship process. One key finding is that some of the mechanisms that fuel organisational inertia in its conventional (negative)connotation, might be the ones enabling positive long-term social and environmental change.

In a time when the global economy continues to stutter, climate change mitigation and social justice simultaneously increase in urgency and complexity. Sustainable development ranks high on the political agenda, but the barriers appear still too intricate to address the solutions solidly. The existing literature strongly supports the relationship between sustainable development and sustainable entrepreneurship, acknowledging enterprises as one of the greatest engines for societal and economic progress, and hence, for radical change. This paper reviews the latest research developments and identifies important research gaps that still need to be addressed in the field of sustainable entrepreneurship. We first explore the existing notions of entrepreneurship and sustainable development with the aim to agree upon a definition that will serve as basis for next discussions and research. Subsequently, an overview of the main themes addressed by the literature referring to sustainable entrepreneurship is given. New venture creations, entrepreneurial drivers, performance and institutions are among the main themes we explore. We then provide an overview of the main methods adopted by scholars in the field. Finally, we address research gaps that, if filled, will surely bring the discipline forward and potentially incentivize more organizations and individuals to engage in sustainable entrepreneurship practices.