How does green entrepreneurial orientation improve enterprises' sustainable performance? Evidence from agricultural sector in China

Abstract

AbstractSustainable development of enterprises has attracted the attention of scholars and practitioners. Green entrepreneurship, as an important way to provide eco‐friendly products and solve environmental problems, is a key way for the sustainable development of enterprises. However, due to the disadvantage faced by enterprises in pursuing costly sustainable actions, existing research on whether green entrepreneurial orientation (GEO) can bring about sustainable performance improvement has not yet reached a consensus, and the path and mechanism of transforming GEO into sustainable performance also need further exploration. Based on the Natural‐Resource‐Based View (NRBV), Entrepreneurial Orientation Theory and Dynamic Capability View (DCV), this study examines the impact of GEO on sustainable performance, the mediating role and chain mediating role of entrepreneurial opportunity recognition (EOR), and business model innovation (BMI). The results based on 207 agricultural enterprises reveal that: (a) GEO positively influences economic performance, environmental performance, and social performance; (b) EOR and BMI play mediating roles in the above relationships; (c) GEO can also indirectly affects sustainable performance through the chain mediating effect of EOR and BMI. The research results provide a new theoretical perspective for understanding the key antecedents of sustainable performance of enterprises, further open the “black box” of the mechanism between GEO and sustainable performance, expand the NRBV, Entrepreneurial Orientation Theory and DCV, and provide practical implications for green transformation in the agricultural sector and promoting its sustainable development.