When corporations retreat: understanding resilient brand activism in SMEs through effectuation theory

Purpose This study aims to examine how brand activism manifests in small and medium-sized enterprises (SMEs) when it grows out of founder values and effectuation principles, and it asks whether activism rooted in those values proves more durable than the institutional activism of large corporations. The 2025 corporate retreat from diversity, equity, and inclusion commitments showed how fragile institutional activism can be: several large corporations dropped activist positions once they came under political pressure, a pattern that suggests their activism functioned as strategic calculation rather than a genuine commitment to values. Design/methodology/approach The authors draw on 14 in-depth interviews with founders and managers of Portuguese footwear and accessories SMEs. Concentrating on a single national sector holds market conditions broadly constant and permits closer examination of the internal drivers of activism. Findings Activist positioning in these firms works through mechanisms that differ from those of large corporations. Founders treat their personal values as an entrepreneurial means, a sense of “what I believe” and build activist identities out of the resources already at hand rather than from a predetermined strategic plan. Three themes emerged: values as an authentic activist identity, narrative coherence as a means of amplifying a small brand and activism as a source of internal cohesion. The analysis also identifies a values-capital tension: when activist SMEs seek growth capital, investor priorities can collide with founder values in ways that are difficult to reconcile. Research limitations/implications The findings identify sustainability challenges when activism depends on non-transferable founder embodiment, raising questions about organizational continuity beyond founding leadership. Practical implications This study advances marketing–entrepreneurship interface scholarship while offering strategic guidance for values-driven SME founders navigating the tension between authentic activism and capital growth requirement. Originality/value This paper contributes to scholarship at the marketing–entrepreneurship interface by treating personal values as a distinct entrepreneurial means, by proposing narrative coherence as a value-creation mechanism and by identifying the sustainability problem that arises when activism rests on a founder who cannot easily be replaced.