Green Innovation, Self-Efficacy, Entrepreneurial Orientation and Economic Performance: Interactions among Saudi Small Enterprises

Abstract

The stiff competition in the market, and continuous pressures from various stakeholders such as customers, business owners, environmental authorities, and society, in general, to produce unique products and services, protect the environment, and obtain competitive advantage continue to challenge the sustainability of enterprises in the market, especially the small ones. Accordingly, to minimize the effect of these challenges and pressures, small enterprises can improve their performance by directing their practices and processes towards developing innovative products and services that can help obtain a competitive advantage, protect the environment and better market share. Accordingly, this study aimed to explore the necessary antecedents contributing to developing innovative green products and services among small enterprises in Saudi Arabia. The study targeted a sample of 284 small entrepreneurs across various regions of Saudi Arabia. The responses were collected with a convenience sample through an online questionnaire. The data were analyzed using partial least squares structural equation modelling (PLS-SEM). The findings revealed that both green entrepreneurial self-efficacy (GESE) and green entrepreneurial orientation (GEO) have a positive relationship with green innovation (GI). The findings also reported that GI mediates the relationship between GESE, GEO and economic performance (EP).