Sustainable Goals and Financial Outcomes: How New Ventures’ SDG Orientation Affects Funding Success

Carolyn Cole; Robert van der Have; Arash Hajikhani

Sustainable Goals and Financial Outcomes: How New Ventures’ SDG Orientation Affects Funding Success

Carolyn Cole
, Robert van der Have
, Arash Hajikhani

Quantitative science and technology studies

Lappeenranta-Lahti University of Technology LUT
Aalto University

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Scientific

Abstract

This study examines the relationship between new ventures’ SDG orientation and their success in acquiring private funding. Using a correlated random effects regression model, we investigate the impact of SDG orientation and previous public funding on private funding outcomes. We find a significant positive impact of SDG orientation on funding acquisition, with planet-focused SDG orientation being the most influential compared to people or prosperity focus. Additionally, we find that previous public funding increases the odds of private funding between firms, indicating a crowding-in effect, while reducing the odds within firms, reflecting changes in search behavior. The results offer evidence for policy impact in guiding private sector investment towards global sustainability goals.

Original language	English
Title of host publication	Academy of Management Proceedings
Publisher	Academy of Management
Publication status	Published - 27 Jul 2025
MoE publication type	Not Eligible
Event	85th Annual Meeting of the Academy of Management, AOM 2025 - Bella Center, Copenhagen, Denmark Duration: 25 Jul 2025 → 29 Jul 2025 Conference number: 85

Publication series

Series	Academy of Management Proceedings
Number	1
Volume	2025
ISSN	0065-0668

Conference

Conference	85th Annual Meeting of the Academy of Management, AOM 2025
Abbreviated title	AoM
Country/Territory	Denmark
City	Copenhagen
Period	25/07/25 → 29/07/25

Funding

This research was part of the “INNOSDG - Mapping Sustainable Development Activity; Its Evolution and Impact in Science, Technology, Innovation and Businesses” project (Grant Number 132376), which was financed by Business Finland and conducted from 2020 to 2023. The project aimed to operationalize big data approaches and create empirical tools to capture sustainable development activities resulting from Research and Development (R&D), public funding, and ecosystem collaboration.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure
SDG 17 Partnerships for the Goals

Keywords

Sustainable Development Goals
New Ventures
Private Investment
Public Funding
Innovation Policy

INNOSDG: Mapping Sustainable Development Activity; Its Evolution and Impact in Science, Technology, Innovation and Businesses
Hajikhani, A. (Manager), Pihlajamaa, M. (Participant), Suominen, A. (Participant), Pajula, T. (Participant) & Cole, C. (Participant)
1/09/20 → 1/03/23
Project: Business Finland project

Cite this

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title = "Sustainable Goals and Financial Outcomes: How New Ventures{\textquoteright} SDG Orientation Affects Funding Success",

abstract = "This study examines the relationship between new ventures{\textquoteright} SDG orientation and their success in acquiring private funding. Using a correlated random effects regression model, we investigate the impact of SDG orientation and previous public funding on private funding outcomes. We find a significant positive impact of SDG orientation on funding acquisition, with planet-focused SDG orientation being the most influential compared to people or prosperity focus. Additionally, we find that previous public funding increases the odds of private funding between firms, indicating a crowding-in effect, while reducing the odds within firms, reflecting changes in search behavior. The results offer evidence for policy impact in guiding private sector investment towards global sustainability goals.",

keywords = "Sustainable Development Goals, New Ventures, Private Investment, Public Funding, Innovation Policy",

author = "Carolyn Cole and \{van der Have\}, Robert and Arash Hajikhani",

note = "Only Abstract available. Only AOM members can access the Academy of Management Proceedings 6-page abridged versions of the Best Papers. ; 85th Annual Meeting of the Academy of Management, AOM 2025, AoM ; Conference date: 25-07-2025 Through 29-07-2025",

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Sustainable Goals and Financial Outcomes: How New Ventures’ SDG Orientation Affects Funding Success. / Cole, Carolyn; van der Have, Robert; Hajikhani, Arash.
Academy of Management Proceedings. Academy of Management, 2025. (Academy of Management Proceedings; No. 1, Vol. 2025).

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Scientific

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AU - van der Have, Robert

AU - Hajikhani, Arash

N1 - Conference code: 85

PY - 2025/7/27

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AB - This study examines the relationship between new ventures’ SDG orientation and their success in acquiring private funding. Using a correlated random effects regression model, we investigate the impact of SDG orientation and previous public funding on private funding outcomes. We find a significant positive impact of SDG orientation on funding acquisition, with planet-focused SDG orientation being the most influential compared to people or prosperity focus. Additionally, we find that previous public funding increases the odds of private funding between firms, indicating a crowding-in effect, while reducing the odds within firms, reflecting changes in search behavior. The results offer evidence for policy impact in guiding private sector investment towards global sustainability goals.

KW - Sustainable Development Goals

KW - New Ventures

KW - Private Investment

KW - Public Funding

KW - Innovation Policy

M3 - Conference abstract in proceedings

T3 - Academy of Management Proceedings

BT - Academy of Management Proceedings

PB - Academy of Management

T2 - 85th Annual Meeting of the Academy of Management, AOM 2025

Y2 - 25 July 2025 through 29 July 2025

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Sustainable Goals and Financial Outcomes: How New Ventures’ SDG Orientation Affects Funding Success

Abstract

Publication series

Conference

Funding

UN SDGs

Keywords

Fingerprint

Projects

INNOSDG: Mapping Sustainable Development Activity; Its Evolution and Impact in Science, Technology, Innovation and Businesses

Cite this