Value proposition development under uncertainty: A theoretical framework grounded on the trajectory of cleantech start-up founders

Sustainability has become a top priority for policymakers and societal stakeholders worldwide, with cleantech start-ups, which are businesses centered on technological innovation to provide more sustainable products and services, as key players in the transition towards a more sustainable economy. However, cleantech start-ups struggle to capture value because of the combination of market, technology, and sociocultural uncertainties. To address customers' skepticism towards their innovative solution, cleantech start-up founders need to design and persuasively communicate a superior Value Proposition (VP). This study seeks to answer the following research question: How do entrepreneurs build and consolidate the VP in their cleantech start-ups? We explored the role of the antecedents of entrepreneurial action in the development of VP and found that contrary to what would be expected based on extant theory, the role of prior market knowledge is less relevant than the exploratory phase of the business for achieving VP consolidation. In addition to addressing the literature gap with an empirically based model that explains how founders can develop the VP of their start-ups, our research provides current and prospective cleantech start-up founders with realistic elements about the time and resources needed for crafting and consolidating a competitive VP.