Impact of Entrepreneurial Exposure on SME’s Environmental Performance: A Moderated-Mediation Analysis

Umar Farooq and Basharat Raza
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Umar Farooq: PhD Scholar, National College of Business Administration & Economics (NCBA&E), Lahore, Pakistan
Basharat Raza: Associate Professor, National College of Business Administration & Economics (NCBA&E), Lahore, Pakistan

Bulletin of Business and Economics (BBE), 2025, vol. 13, issue 3, 480-491

Abstract: The purpose of this research is to find, explore, and understand the intricate dynamics between entrepreneurial exposure and their ultimate impact on the environmental performance of Small and Medium-sized Enterprises (SMEs). In an era where environmental sustainability has become a pressing concern for businesses worldwide, it is crucial to identify the factors that can enhance the environmental performance of SMEs, which are a significant segment of the global economy. Using a quantitative methodology, the study proposes and tests a model that examines the predictors of SME’s environmental performance. A survey was conducted, and 358 employees working in SME’s of Pakistan participated. The model of measurement and structural model were analyzed by the use of SmartPLS software. The findings demonstrate a positive relationship between entrepreneurial exposure (EEP) and SME’s environmental performance (EP). This study also reveals the mediating role of green entrepreneurial orientations (GEO) in the relationship between EEP and SME’s environmental performance. Furthermore, study also investigate the moderating role of green absorptive capacity. Overall, the implementation of said findings fosters employee green conduct and promotes SME’s environmental performance (EP). The research model presented in this study addresses a significant gap in the existing literature. Firstly, this research investigates the relationship between entrepreneurial exposure on SME’s environmental performance. The environmental performance of SMEs can be significantly enhanced by adopting green entrepreneurial exposure. Secondly, this study also addresses the gap by investigating the mediating role of green entrepreneurial orientation between entrepreneurial exposure and SME’s environmental performance. Lastly by exploring the moderating role of green absorptive capacity between green entrepreneurial intention and between entrepreneurial exposure and green entrepreneurial orientation. The gap is supported by Makhloufi et al., (2023); Sun et al., (2023); Alvarez et al., (2006). Such resources enable SMEs to effectively coordinate their business activities, thereby playing a crucial role in enhancing organizational performance (Pasaribu et al., 2021).

Keywords: Entrepreneurial Exposure; SME’s Environmental Performance; Entrepreneurial Orientation; Green Absorptive Capacity (search for similar items in EconPapers)
Date: 2025
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