Enhancing sustainable business performance through green entrepreneurial orientation in circular economy food SMEs

This article presents a comprehensive exploration, rooted in a literature review, aiming to elucidate the nexus between Creating Shared Value (CSV) and the determinants of sustainable business performance. In the contemporary business landscape, environmental sustainability has evolved beyond a moral responsibility and become a strategic business opportunity for modern companies. The methodology employed in this study involves conducting an extensive literature review. Through the analysis of existing literature, the research synthesizes insights into the relationship between CSV and sustainable business performance. The focus is on theoretical exploration, elucidating the connections between green entrepreneurial orientation, green innovation, and green marketing strategies in the context of sustainable business practices. The literature review reveals that environmental sustainability significantly shapes contemporary business strategies. The emergence of CSV as a business strategy underscores the integration of corporate success with positive contributions to society and the environment. The synthesized results highlight the theoretical relationships between green entrepreneurial orientation, green innovation, and green marketing strategies with sustainable business performance. Building upon the results, the discussion interprets the implications of the identified relationships and their significance in the realm of sustainable business strategies. This article enriches the academic literature by providing a conceptual framework for understanding sustainable business strategies. Additionally, the findings offer practical support for businesses in formulating sustainable strategies, guidance on integrating green innovation, and serve as a valuable reference for policymakers. Keywords: creating shared value, green entrepreneurial orientation, green innovation, green marketing strategies, sustainable business performance

Due to the recent economic crisis, the requirement for sustainable company performance has spread across the globe, with green initiatives being seen as the best way to address it. Recent literature and regulators have taken notice of this predicament. The deployment of green innovation, responsible leadership induction, and green human resource management (GHRM) techniques have been made necessary by the significant focus on attaining business sustainability. This study aims to provide light on the banking industry’s perception of how GHRM practices, green innovation, and responsible leadership affect business sustainability practices. The data were provided by 396 banking professionals employed by the top five commercial sector banks nationwide. By using the Mplus program for analysis, the study’s hypotheses were evaluated using structural equation modeling. The findings show a positive relationship between GHRM practices, ethical leadership, green process innovation, and sustainable company performance. However, an intriguing finding between responsible leadership and sustainable business performance was the role that pro-environmental conduct played as a partial mediator. The findings offer scholars and practitioners interested in firms’ sustainable business performance additional context-specific social, ecological, and financial implications. The effectiveness of GHRM practices, responsible leadership, and green innovation as a strategy to increase business sustainability in a developing country environment has only received minimal academic attention so far. A literary gap exists as few studies have been conducted to test the role of green HRM, responsible leadership, and green innovation’s impact on sustainable business practices. Small number of studies taken pro-environmental behaviors as a mediator in the recent past. In light of this, the present study has taken these behaviors as a mediator to test the mediation effect in the banking sector of Pakistan. So, the present study removed the gap by exploring the mediation effect of pro-environmental behaviors. The selection of Pakistan’s banking sector for analysis in the present study is a significant contribution to the literature because no studies have previously been conducted on Pakistan’s banking sector to analyze the role of green HRM practices, responsible leadership, and green innovation’s impact on sustainable business performance through the mediating role of their pro-environmental behavior. The present study provides guidelines to senior management in the banking sector to understand the role of green HRM practices, responsible leadership, and green innovation practices’ importance for sustainable business performance as sustainable performance is essential to excel in this competitive business world.

This study investigates how Green Technology Innovation (GTI) enhances Sustainable Business Performance (SBP) through the mediating role of Circular Economy (CE) practices, offering an integrative framework that addresses firm-level sustainability strategy. A quantitative, cross-sectional survey was conducted among 250 manufacturing firms. Using validated instruments, data were collected on GTI activities, CE implementation, and SBP outcomes. Structural Equation Modeling–Partial Least Squares (SEM-PLS) was employed to test direct and indirect relationships, with bootstrapping applied to assess mediation effects.Findings reveal that GTI positively influences both CE adoption (β = 0.64, p < 0.001) and SBP (β = 0.32, p < 0.01). CE also directly enhances SBP (β = 0.58, p < 0.001) and partially mediates the GTI–SBP relationship (indirect β = 0.37, p < 0.001). Sectoral and geographic variations in adoption were noted, with larger and high-tech firms demonstrating higher engagement. The results validate the Natural Resource–Based View (NRBV), indicating that firms with integrated GTI–CE strategies gain competitive and environmental advantages. CE was found to serve as both a performance enabler and a resilience mechanism. GTI and CE are complementary strategies for achieving SBP. Firms should embed CE into their innovation strategies to maximize outcomes. Policymakers are encouraged to promote supportive regulatory and fiscal environments. Future studies should explore longitudinal effects and sector-specific dynamics.

In this research work, we investigate the direct impact of CEO power on corporate performance, as well as the mediating role of green innovation in this hypothesized relationship. In this study, we use observation data collected from 780 listed manufacturing companies, explicitly focusing on the Karachi Stock Exchange (KSE), and adopt a GMM (generalized method of moments) model for testing our hypotheses. The results of this research show that CEO power has a negative impact on sustainable corporate performance, while the mediating role of green innovation positively and completely regulates the effect of CEO power on enterprises’ sustainable performance. This study adds novelty to the literature as it explores the influence of green innovation in manufacturing enterprises on CEO power and firm performance and observes the direct impact of green innovation and CEO power on sustainable business performance. The results of this study show that a green innovation strategy significantly affects CEO power and manufacturing firm performance and that companies that adopt green initiatives can increase corporate value and improve their reputation among stakeholders. The conclusions of this study have important implications for both theory and practice in this field.

With environmental issues increasingly becoming prominent in today’s business world, firms may need to pay extra attention to developing their environmental strategies and capabilities in response to environmental concerns and achieving sustainable growth. While a broad consensus exists on the value of green innovation, current empirical research on how different types of green innovation strategies may account for the international performance of a firm remains scant. Addressing this gap is important because determining how to better manage a firm’s green innovation strategies nowadays has become increasingly important for firms hoping to achieve and maintain their sustainable performance advantages. This study aims to bridge this gap by systematically examining how various types of green innovation strategies (i.e., green product, green process, and green service innovations) can be beneficial to firms in an emerging market economy. This study also examined the important role that potential risks of supply chain play in shaping the relationships between various types of green innovation strategies and firm performance. This study proposes that the effective management of supply chain risks may be important to the successful implementation of green innovation strategies because green innovation has increasingly become a collaborative effort. This study empirically tested the hypotheses by gathering survey data from a sample of 337 firms in China’s manufacturing industries. Results demonstrate that the green innovation strategies of firms are positively related to their firm performance. Additionally, the potential risks faced by the firms in efficiently and effectively managing their supply chain significantly moderate the impact of green product innovation and green process innovation strategies on their firm performance. This study not only offers useful theoretical implications for the green innovation strategy research and for better and effective supply chain risk management. It also provides important practical guidelines and managerial actions that practicing managers can implement to accelerate their green innovation strategy, assess the effect of supply chain risks, and thus improve firm performance in the post-pandemic era.

This research investigates how green innovation, including both product and process innovations, affects the sustainable performance of micro, small, and medium food and beverage enterprises (MSMEs) in Bandar Lampung City. Using quantitative methods and a sample of 100 MSMEs, the study finds that while there is a positive but insignificant relationship between green product innovation and sustainable business performance, there is a significant positive relationship between green process innovation and sustainable business performance. This suggests that MSMEs in the food and beverage sector are increasingly adopting environmentally friendly practices, such as waste management and energy conservation, leading to improved business sustainability. The study underscores the importance of integrating green innovation into business strategies to enhance performance and promote environmental responsibility.

Enhancing the emphasis on incorporating sustainable practices reinforces a linear transition towards a circular economy by organizations. Nevertheless, although studies on circular economy demonstrate an increasing trend, the drivers that support circular economy practices towards sustainable business performance in the Small and Medium-Sized Enterprise (SME) sector, especially in developing nations, demand exploration. Accordingly, the study examines circular economy drivers, i.e., green human resource management, in establishing sustainability performance and environmental dynamism as moderating variables. The study engaged 207 SMEs and 621 respondents who were analyzed utilizing structural equation modeling. The analysis indicated that sustainable business performance was affected by green human resource management and a circular economy. Subsequently, the circular economy mediated the linkage between green human resources management and sustainable business performance. The environmental dynamism moderated the linkage between green human resources management and the circular economy.

PurposeEmploying a large sample consisting of 3,701 corporations domiciled in developed and emerging countries, this paper aims to analyze the mediating role of investment efficiency in the association between business sustainability performance and corporate financial performance.Design/methodology/approachFour different aspects of corporate sustainability offered by the ASSET4 database are used as proxies for business sustainability performance, including economic, corporate governance, social and environmental dimensions. In addition to these aspects, the aggregate measure of business sustainability performance is also employed. In order to test the association between business sustainability and corporate performance via investment efficiency, ordinary least squares, fixed-effect, random-effect and generalized method of moments statistical models were employed.FindingsThe results suggest that business sustainability performance is positively associated with corporate financial performance, indicating that sustainable corporations enjoy higher financial performance. Moreover, Sobel, Aroian and Goodman tests confirm that investment efficiency mediates the positive relationship between business sustainability performance and financial performance. Finally, further analyses show that the positive association between sustainability performance and investment efficiency is stronger for those firms headquartered in developed countries than in those located in emerging nations.Originality/valueThis paper contributes to the literature by investigating how growth opportunities advance the influence of business sustainability to corporate financial performance using a large sample from 43 countries.

The sudden outbreak and long-term trend of COVID-19 have brought huge attacks and uncertainty to the global economy, forcing countries to introduce various policies frequently to stimulate economic recovery. To realize sustainable development, firms established an environment-friendly economic development model by building a circular supply chain and implementing a green innovation strategy, which is expected to save resources and protect the environment by recycling resources. Based on this background, this study aims to determine the relationship between the uncertainty of economic policy, green innovation strategy, and circular supply chain performance. It divides green innovation strategies into green product innovation, green process innovation, green service innovation, and green logistics innovation to explore their different impacts on the performance of the circular supply chain. Simultaneously, the moderating effect of uncertainty of economic policy between green innovation and the performance of the circular supply chain is explored. Using survey data collected from 308 manufacturing firms in China, we empirically test the theoretical model and proposed hypotheses through the structural equation modeling approach. Our findings demonstrate that green product innovation, green process innovation, green logistics innovation, and green service innovation have a positive impact on the performance of the circular supply chain. Moreover, we also find that, contrary to our expectations, economic policy uncertainty plays a positive role in moderating the relationship between green innovation and circular supply chain performance. We believe that this paper has a clear contribution to the research on green innovation and circular supply chain management. This study provides a new perspective for the research on the integration of green innovation and circular supply chain, deepens firms’ understanding of green innovation strategy and circular supply chain, and provides important implications and guidance for manufacturing firms to better manage green innovation and circular supply chain practice as well as the risk of economic policy uncertainty.

This study investigates the impact of green human resource management (HRM) practices on sustainable business performance in manufacturing SMEs in industrial cities in Pakistan. Employing a positive approach and quantitative research design, the study focuses on primary HRM practices such as green recruitment selection and green training and development, investigating their impact on green innovation and, subsequently, on sustainable business performance. Researchers surveyed a sample of 350 managers and identified significant relationships through data analysis using SmartPLS software and structural equation modeling (SEM). The results indicate that both Green Recruitment & Selection and Green Training and Development positively influence Green Innovation, with subsequent positive impacts on sustainable business performance. The mediation analysis confirmed the crucial role of Green Innovation in linking Green HRM practices with sustainable outcomes. This study contributes valuable insights to the existing literature by offering a comprehensive understanding of the intricate relationships between these variables. The findings provide practical implications for HR professionals and organizational leaders, emphasizing the strategic importance of integrating environmentally friendly HRM practices to foster innovation and enhance overall business sustainability in the context of Manufacturing SMEs.

ABSTRACTThis research investigates the complex relationships between digital orientation, entrepreneurial competency, and strategic change, and their impact on sustainable business performance. It also explores how sustainable competitive advantage and flexible resources moderate the link between strategic change and sustainable performance outcomes in dynamic business environments. The authors collected survey data from 349 small and medium‐sized enterprises (SMEs) to test the proposed model. They then used partial least squares structural equation modelling (PLS‐SEM) with SmartPLS 4 software to analyze the relationships between the variables. The findings reveal that digital orientation strongly drives strategic change, which in turn strongly enhances sustainable business performance. Digital orientation also directly leads to sustainable performance. Strategic change mediates the relationship between digital orientation and sustainable performance, while entrepreneurial competency partially mediates the effects of digital orientation. Competitive advantage and flexible resources moderately strengthen the link between strategic change and sustainable performance. This study provides novel insights into the complex interplay between digital orientation, entrepreneurial competency, and strategic change, and how these factors jointly contribute to sustainable business performance. The findings also uncover the moderating roles of competitive advantage and flexible resources, offering practical guidance for managers seeking to enhance long‐term organizational success in dynamic environments.

Unlocking sustainable success in the manufacturing sector, particularly within Indonesia's dynamic landscape, holds paramount importance. This study aims to provide empirical evidence elucidating the profound influence of intellectual capital on sustainable business performance in Indonesian food and beverage manufacturing firms listed on the Indonesia Stock Exchange from 2018 to 2022. Focusing on a selected population, through purposive sampling techniques yielded a sample size of 40, meticulously analyzed using Eviews12. Employing a quantitative research approach, panel data regression forms the methodological foundation, revealing both the direct and indirect effects of intellectual capital on sustainable business performance, with innovation serving as a mediating variable. Sustainable business performance is assessed through the Sustainable Balance Scorecard (SUSBAL), while Intellectual Capital is measured using the Modified Value-Added Intellectual Coefficient (MVAIC), and innovation is quantified using the Company Innovation Index (CII). Empirical findings unveil a significant positive correlation between intellectual capital (IC), innovation (INV), and sustainable business performance (SBP), highlighting the role of various intellectual assets in driving organizational resilience and success. Additionally, the study explores the indirect influence of intellectual capital on sustainable business performance through innovation as a mediating variable. The results demonstrate that intellectual capital significantly and positively impacts sustainable business performance through innovation as a partial mediator. This study contributes novel insights into the intricate interplay between intellectual capital, innovation, and sustainable performance, offering strategic guidance for managers and policymakers navigating the complexities of Indonesia's manufacturing landscape, thereby fostering enduring organizational success and resilience amidst evolving market dynamics.

This study explores how sustainable Human Resource Management (HRM) practices influence business performance in healthcare SMEs, with green innovation acting as a mediating variable. Employing PLS-SEM, data was collected from 200 managers in healthcare SMEs across India. The findings show that green recruiting and selection, as well as green training and development, significantly enhance on sustainable business performance. Additionally, green innovation has been found to mediate the relationship between sustainable HRM practices and business performance, underscoring its critical role in driving organizational sustainability. These findings are consistent with current literature and highlight the strategic importance of incorporating environmental sustainability into HRM practices. For practitioners, the study offers valuable insights into designing and implementing green HRM strategies to achieve both environmental and business goals. The research highlights the need for healthcare SMEs to adopt sustainable HRM practices to stay competitive and compliant with regulatory standards, thereby ensuring long-term success. Future research should consider longitudinal studies, diverse industrial contexts, and broader dimensions of sustainable HRM to further validate and expand upon these findings.

PurposeThe purpose of this paper is to explore whether green innovation strategy has a positive effect on green innovation. Furthermore, this study investigates whether both green organizational identity and environmental organizational legitimacy mediate the relationship between green innovation strategy and green innovation.Design/methodology/approachThis study is designed as a quantitative research using questionnaires to collect data and employing a variance-based or partial least squares structural equation modeling to test the hypotheses.FindingsThe empirical results show that green innovation strategy positively affects green innovation. This study also demonstrates that green innovation strategy positively affects green innovation indirectly via green organizational identity and environmental organizational legitimacy in manufacturing companies in Indonesia as a developing country. This study suggests that firms should develop green innovation strategy and it must be reflected as green organizational identity to get environmental organizational legitimacy, and then firms will achieve a better green innovation performance.Research limitations/implicationsThis study has the following limitations. First, a structural equation modeling is used as an approach to test the hypotheses and this may raise the issue of causality. Second, although examining the antecedents of green innovation, this study does not investigate its consequences. Third, the sample size used in this study is relatively small and limited to companies in the Surabaya Industrial Estate Rungkut, Indonesia. Finally, this study employs a cross-sectional survey and the data obtained are based on the Likert scales that may raise the issue of perception bias of the sampled managers.Practical implicationsThe results of this study suggest that managers need to verify the roles of green organizational identity and environmental organizational legitimacy in their companies. In the era of environmentally conscious society, managers need to start with developing a green innovation strategy. However, managers also need to understand that having a strategy is not sufficient enough to directly enhance green innovation performance. Managers need to seek approaches on how to cultivate a strong green organizational identity and use the identity to get environmental organizational legitimacy from the stakeholders.Social implicationsThis research model and results provide the empirical evidence of the importance of green innovation and its antecedents, namely, a green innovation strategy, green organizational identity and environmental organizational legitimacy. When manufacturing companies in Indonesia implement this model of managing environmental issues, the society will get more benefits in terms of the reduction of environmental degradation, the availability of more green products and programs, the improvements in resource efficiencies and economic development and the enhancement of the quality of life.Originality/valueA research framework exploring the mediating roles of green organizational identity and environmental organizational legitimacy on green innovation strategy–green innovation relationship is developed to provide the empirical evidence for the organizational identity theory and the organizational legitimacy theory. This study also provides practical implications for managers who are facing the environmental awareness business environment. If they want to achieve a better green innovation performance, managers should enhance their awareness in managing the antecedents of green innovation performance, namely, green innovation strategy, green organizational identity and environmental organizational legitimacy.

Currently, sustainable business performance has become the global requirement due to the recent economic disaster, and green measures have been considered the leading solution for it. This situation has gained the attention of recent literature and regulators; thus, the present study examined the green transformational leadership (GTL), human resource management (HRM), and innovation on the sustainable business performance of the manufacturing organizations in China. The moderating impact of perceived organizational support among the association of GTL, green HRM, green innovation, and sustainable business performance of the manufacturing organizations in China was also investigated. The questionnaires method was adopted to collect data, and the smart-PLS was used to test the hypotheses. The results indicated that GTL, green HRM, and green innovation have a significant and direct association with the sustainable business performance of the manufacturing organizations in China. The outcomes also revealed that organizational support significantly moderates among the nexus of GTL, green HRM, green innovation, and sustainable business performance of the manufacturing organizations in China. The current research provides help to the regulators while formulating policies and guides the new researchers while examining this topic in the future.