Effect of Green Entrepreneurial Orientation and Absorptive Capacity on Green Innovation and Environmental Orientation Among Educated Gen Z’s in Europe

Adam Figiel and Ayesha Badar ()
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Adam Figiel: College of Management and Quality Sciences, Management Institute, Krakow University of Economics, ul. Rakowicka 27, 31-510 Krakow, Poland
Ayesha Badar: Hailey College of Banking & Finance, University of the Punjab, Lahore 54000, Pakistan

Sustainability, 2025, vol. 17, issue 2, 1-21

Abstract: The study evaluates the interest of business-educated Gen Z in pursuing careers in various industries and their potential to accelerate Green Innovation (GI). It specifically focuses on Gen Z in Europe, who are business-educated and pursuing their career in different industry sectors, and aiming to address climate change and sustainable practices. By adopting Green Entrepreneurial Orientation (GEO) and building Absorptive Capacity (AC), companies can significantly contribute to improving Environmental Orientation (EO) by appealing to Gen Z—their future employees and customers. The study aims to survey 280 business-educated Gen Z people in Europe. The findings of the study show that the relationship between absorptive capacity and environmental orientation is not always significant, and the impact can be negligible, specifically when the firms have a low commitment to environmental strategies and have a limited strategic emphasis on sustainable practices. The study aims to encourage innovation and sustainable growth among firms, opening the door to a more sustainable future and attracting goodwill from environmentally oriented Generation Z. The publication/article presents the results of the project financed from the subsidy granted to the Krakow University of Economics.

Keywords: green entrepreneurial orientation; absorptive capacity; green innovation; environmental orientation; environmental issues; firm performance; sustainable future (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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