The Psychology of Green Entrepreneurship: Environmentally Sustainable Organizational Climate in Small-scale Companies in India

Abstract

This study explores the psychology of green entrepreneurship and the role of the founder in establishing a green climate in organizations. The study examined the process of founding an environmentally sustainable organizational climate in small-scale auto ancillary companies in India. Focus group interviews were conducted, and questionnaires were distributed in the field; subsequently, the founders participated in an in-depth follow-up interview to explore the evolving elements of the green climate. Thematic analysis revealed that the founders’ environmental focus had different origins, indicative of four motivational categories: opposition, frugality, activism and idealism. The founders played a crucial role in influencing green employee behaviour through both supervision and direct behavioural instructions. Moreover, the participants frequently mentioned the practical aspects of the environmental focus, while values and strategies were generally tacit. The findings indicate that the founders’ motivational position determined the trajectory of developing a green climate.