Abstract
It is still unclear whether the green proactiveness orientation (GPO) adopted by agricultural new ventures boost firm performance, and what is its internal mechanism, especially in the transition economies where agriculture accounts for a significant proportion. Therefore, drawing on the theory of green entrepreneurial orientation and natural-resource-based view, this study used the structural equation model combined with Bootstrapping to test the direct and indirect effects of GPO on firm performance. Results from 301 agricultural new ventures in China demonstrate that GPO has a positive influence on environmental performance, but its influence on financial performance is not significant. Sustainable opportunity recognition (SOR) partially mediates the relationship between GPO and environmental performance and fully mediates the relationship between GPO and financial performance. Besides, we find that environmental performance plays a mediating role between SOR and financial performance. This study, the first of its kind, focuses on green entrepreneurship of agricultural new ventures in the transition economy to enrich the literature on green entrepreneurial orientation through GPO. It also provides some valuable references for managers to recognize sustainable entrepreneurial opportunities through GPO to improve their environmental and financial performance. These could be important in terms of both management and policy implications.
Highlights
Environmental pollution and ecological degradation have seriously damaged economic development, human health, and living conditions
Sustainable opportunity recognition (SOR) partially mediates the relationship between green proactiveness orientation (GPO) and environmental performance, and environmental performance shows a partial mediating effect between SOR and financial performance
Most previous studies have neglected the complex impact of green entrepreneurial orientation sub-dimension on the performance of agricultural new ventures (Jiang et al, 2018; Shafique et al, 2021), seldom of them are related to SOR
Summary
Environmental pollution and ecological degradation have seriously damaged economic development, human health, and living conditions. GPO helps agricultural new ventures identify sustainable entrepreneurial opportunities These environmentally friendly practices and activities enhance the development of resources and capabilities that are scarce and difficult to imitate, and improve both environmental and financial performance. Agricultural new ventures, capturing environmentally friendly entrepreneurial opportunities and using a systemic approach that emphasizes source reduction and process innovation, can build differentiated capabilities and resources (Porter & van der Linde, 1995b; Russo & Fouts, 1997) This process can improve their environmental performance, and translate them into a sustained competitive advantage, which leads to an increase in financial performance (Hart, 1995). Less than 1 year 1–3 years 3–5 years 5–8 years 1–20 employees 21–50 employees 51–100 employees More than 100 employees State-owned enterprises Privately owned enterprises Foreign-funded enterprises Others Planting and breeding Agro-processing Agricultural marketing Catering, tourism, and health care Others
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