Entrepreneurial Leadership and Green Innovation: An Upper Echelons Theory Perspective

Abstract

Despite the dominant discourses on the important role of entrepreneurial leadership in firms’ behavior, related theoretical and empirical studies are still lacking. To fill this research gap, we draw on upper echelons theory to develop a moderated mediation model in which we investigate how and under what conditions entrepreneurial leadership affects the adoption of green innovation. This theoretical model is tested using a dataset of 248 Chinese firms (built on a total of 496 responses). Our findings support the positive impact of entrepreneurial leadership on green innovation and the mediating role of cross-functional coordination within firm boundaries. The moderated mediation path analysis shows that environmental dynamism fortifies the indirect influence of entrepreneurial leadership on green innovation via cross-functional coordination. Overall, this study adds to corporate entrepreneurship and environmental management scholarship by providing novel insights into the key role of entrepreneurial leadership in embracing green innovation.