Entrepreneurial orientation and green management in an emerging economy: The moderating effects of social legitimacy and ownership type

Abstract

By combining major tenets developed in the entrepreneurial orientation literature and institutional theory, we investigate the relationship between entrepreneurial orientation and green management in the context of emerging markets and the moderating effects of social legitimacy and ownership type. Using survey data from 239 firms in China, we find that entrepreneurial orientation is positively associated with emerging market firms' green management. This positive relationship is strengthened by social legitimacy and is stronger for state-owned enterprises than for non-state-owned enterprises. Furthermore, our empirical results partly support the idea that the configuration of high entrepreneurial orientation, high social legitimacy and state ownership is more effective in facilitating emerging market firms' green management than other configurations. This study explores a new perspective (i.e., the integration of an entrepreneurial approach and institutional theory) to explain why firms make differentiated green decisions in emerging markets. Additionally, the three-way configuration effects provide a more complete picture and thereby facilitate a deeper understanding of emerging market firms’ entrepreneurial spirit with regard to environmental issues.