Sustainable Entrepreneurship Orientation: Application of a Formative Measurement Model

Background: Despite growing scholarly interest in Sustainable Entrepreneurship Orientation (SEO), the field lacks a theoretically grounded measurement approach, limiting the generalizability and comparability of SEO adaptation. Methods: This paper proposes an evidence-based formative measurement approach to assess the degree of SEO within an enterprise. A multidisciplinary literature review identified four SEO dimensions, namely Entrepreneurial, People, Environmental, and Communal Orientation (EPEC), and their observable firm behavior indicators. A Multiple Indicators and Multiple Causes (MIMIC) model framework is used to position SEO as a latent formative construct rated across defined maturity levels. A longitudinal single-case study of a Hungarian private medical clinic, conducted over four quarterly measurement cycles using onsite observations and semi-structured interviews, was used to demonstrate the feasibility of the instrument, its ability to rate SEO adaptation levels consistently across independent raters from different organizational roles, and its ability to generate meaningful, trackable SEO maturity data that evolves. Results: Fleiss’ Kappa values confirmed substantial inter-rater agreement across 21 raters, and progressive SEO maturity was observed across all four quarters. Conclusions: The paper offers a theoretically grounded, methodologically replicable measurement instrument with potential applications for researchers, practitioners, and policymakers, subject to further validation across diverse organizational and cultural contexts.