Sustainable entrepreneurship in times of crisis: an institutional theory perspective

Purpose This study aims to investigate the variations in sustainable entrepreneurship practices between rural and urban areas in times of crisis, using the institutional theory lens. Design/methodology/approach A qualitative methodology was used to explore this concept, involving 42 semi-structured interviews conducted with 30 hospitality companies. Findings Governance, human rights, community involvement and development, labor practices and environmental practices differ between rural and urban settings. In contrast, the geographic setting does not affect transparency, accountability or ethical behavior practices. Through the lens of institutional theory, sustainable entrepreneurship was studied and it was found that coercive, normative and mimetic institutional pressures drive corporate social responsibility differently in rural and urban businesses. Coercive forces pressure urban businesses while rural firms operate under normative expectations and imitate the best practices of urban businesses. Despite the evident benefits of sustainable practices, it was discovered that there was a salient shift toward abandoning sustainable practices in times of crisis. Originality/value This study contributes to the literature on sustainable entrepreneurship, as it deals with the differences in sustainable practices between rural and urban areas in times of crisis, providing researchers and policymakers with new data.