Sustainability Research Reveals Importance of Green Entrepreneurship in Achieving Long-Term Sustainability

Strategic Insights -

Current business dynamics have been significantly impacted by the growing emphasis on social and environmental sustainability. This shift has compelled companies to integrate green supply chain management (GSCM) practices to address environmental challenges. However, the alignment between a firm's strategic orientation, such as market orientation (MO) and green entrepreneurial orientation (GEO), and its green supply chain strategies remains underexplored.

Key Takeaways:

  • The study investigates the impact of market orientation (MO) and green entrepreneurial orientation (GEO) on a firm's sustainable firm performance (SP), focusing on the mediating role of GSCM.
  • The research finds that GEO significantly influences SP, while MO shows a weaker and less direct impact, contradicting prior assumptions.
  • GSCM mediates the relationship between GEO and SP but does not mediate the link between MO and SP, highlighting the limitations of market-driven approaches in achieving long-term sustainability.
  • External factors, including environmental dynamism (ED) and resource capabilities (RC), moderate the relationship between these variables, particularly in the context of Chinese technology firms.
  • The research underscores the importance of proactive green entrepreneurship and organizational resource flexibility in achieving sustainable performance.

Statistics:

  • The study examines 21 Chinese technology firms, providing a sample size of 2025 respondents.
  • The research employs PLS-SEM via SmartPLS to analyze the relationships between MO, GEO, GSCM, ED, RC, and SP.
  • The findings confirm that GEO has a significant influence on SP, with a correlation coefficient (ρ) of 0.75 (p < 0.001).
  • MO shows a weaker and less direct impact on SP, with a correlation coefficient (ρ) of 0.42 (p < 0.05).
  • ED negatively influences the GEO-SP link, with a moderation effect presented as β = -0.22 (p < 0.001).
  • RC moderates the relationship between GEO and SP, with a moderation effect presented as β = 0.15 (p < 0.05).

Sources:

  • Optimizing Sustainable Performance Through Green Entrepreneurial Orientation, Market Orientation, Green Supply Chain Management Practices, Environmental Dynamism, and Resource Capabilities: Evidence From Technological Firms. International Entrepreneurship and Management Journal, 2025;21(1).
  • Published in Springer, One New York Plaza, Suite 4600, New York, NY, United States.