Green entrepreneurial leadership, and performance of entrepreneurial firms: does green product innovation mediates?

Muzaffar Asad, Mohammed Ali Bait Ali Sulaiman, Ali Mohsin Salim Ba Awain, Malek Alsoud, Zafrul Allam and Muhammad Uzair Asif

Cogent Business & Management, 2024, vol. 11, issue 1, 2355685

Abstract: PurposeGreen practices recently gained attention for performance whereas financial and market performance has hardly been addressed by the researchers. Based on dynamic capability theory and resource-based view, we hypothesized that green entrepreneurial orientation and green transformational leadership have a significant impact over green product innovation as well as overall performance.MethodologyThe researchers collected data from 384 entrepreneurial firms using adopted questionnaires. The analysis has been made by applying structural equation modelling using a bootstrapping sample of 5000 with the help of SMART PLS 3.FindingsThe study results revealed that green entrepreneurial orientation and green transformational leadership have a significant impact over performance. Moreover, intervening effect of green product innovation is significant between green entrepreneurial orientation and performance of entrepreneurial firms, where green product innovation failed to mediate between green transformational leadership and performance of entrepreneurial firms.Research LimitationsThe sample was collected from limited cities and only from one developing country where the consumers do not have an elevated level of awareness for environmental concerns.The current research titled ‘Green Entrepreneurial Leadership and Performance of Entrepreneurial Firms: Does Green Product Innovation Mediates?’ emphasized on green entrepreneurship and transformational leadership for promoting green product innovation to boost the performance of SMEs. Using a structural equation modelling the research not only confirmed the importance of green practices but also recommends that such practices significantly boost performance. The findings of the study are vital for the business people, and also for the policy makers to provide incentives to the SMEs that are following green practices, to promote economic growth and bring sustainability, via competing in the global market in line with the Sustainable Development Goals (SDGs).

Date: 2024
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DOI: 10.1080/23311975.2024.2355685

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