On the development and implementation of sustainability strategies in the Dutch festival sector

Abstract

The festival sector is under pressure due to a rapid expansion, increased competition, more regulation and declining financial resources. At the same time, stakeholders demand more sustainable business practices. Sustainability is becoming a theme that festival organisers have to keep in mind when organising a festival. To address sustainability issues in a structured and economical way, a festival organiser should incorporate sustainability in its business strategy. But how can this be achieved? This research looks into business factors that can affect the incorporation of sustainability in the business strategy by answering the research question: What factors affect positively or negatively the incorporation of sustainability in the business strategy of festival organisers?

It was found that the incorporation of sustainability in the business strategy is dependent on the dynamic capability “seizing” and the resources “change management capabilities” and “focus on consumer”.

It was expected that a combination of resources and dynamic capabilities is necessary to incorporate sustainability in the business strategy. The organiser needs resources to organise a festival and meet short term goals. In addition, dynamic capabilities are necessary to meet long term goals. To sense business opportunities, seize these opportunities and transform the business to meet the requirements of the new business opportunities. In the next two sections explanations for the findings of this study are provided.

Sensing is affecting the sustainability score indirectly. This could be explained though the fact that festivals can be directly observed, and innovations are shared throughout the sector by organisers and suppliers. In addition, transforming does not play a role regarding the incorporation of sustainability in the business strategy. One explanation could be that festival organisers are small, non-hierarchical, flexible and often operate on an annually recurring basis. Therefore, pivoting into a new strategy can be done quickly. Firms that invest in seizing capabilities can incorporate sustainability in the business strategy more easily.

Next to the results above, correlations between resources and dynamic capabilities were also found. “Trained and competent staff” affect the sensing capability positively and “capability to learn” affects sensing negatively. “Change management capabilities” and “stable leadership” affect the seizing capability positively and “internal communication” affects seizing negatively. These findings suggest that an outward focus, capable staff and change leadership are at the base of incorporating sustainability in the business strategy. Focussing on internal affairs may affect the incorporation of sustainability in a negative way.