Do institutional dimensions play a role in IT firms’ performance? Determining the influence of green entrepreneurial orientation and dynamic capabilities in a developing context

Nabila Abid (), Junaid Aftab and Marco Savastano
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Nabila Abid: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
Junaid Aftab: Tongji University
Marco Savastano: UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome]

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Abstract: Purpose Drawing an inference from institutional theory and dynamic capabilities view, this study empirically examined the impact of three institutional dimensions (regulative, normative and cognitive) and green entrepreneurial orientation (GEO) on a business firm's performance. In addition, the moderating effect of dynamic capabilities on the relationship between GEO and firm performance was also explored. Design/methodology/approach The data were collected from 527 information technology (IT) firms in Pakistan using paper–pencil questionnaires, and the hypotheses were tested using structural equation modeling. Findings The findings showed that the regulative and normative institutional dimensions enhance GEO and firm performance in the selected developing country. However, the cognitive institutional dimension fails to report any substantial influence on GEO and firm performance. The findings raised concerns about lower individual accountability as well as the promotion of green practices and firm performance. In addition, dynamic capabilities positively moderate the GEO influence on firm performance. Originality/value With the interplay of institutional dimensions, GEO (as mediator) and dynamic capabilities (as moderator), this study developed and tested a unique framework to understand their influence on firm performance. Specifically, we extended the literature by giving evidence that among the three institutional dimensions, only regulative and normative are considered more important because of their direct and indirect (through GEO) positive effect on firm performance. In contrast, the cognitive institutional dimension failed to report any significant direct or indirect impact on firm performance in our study.

Keywords: Green entrepeneurial orientation; Regulatory institutional dimensions; Normative institutional dimensions; Cognitive institutional dimensions; Firm performance; Dynamic capabilities view; Institutional theory (search for similar items in EconPapers)
Date: 2024-09-16
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Published in Business Process Management Journal, 2024, ⟨10.1108/BPMJ-06-2023-0498⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04973977

DOI: 10.1108/BPMJ-06-2023-0498

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