Environmental Outcomes of Green Entrepreneurship Harmonization

Tang Meirun,Lahcene Makhloufi,Mohamad Ghozali Hassan

doi:10.3390/su122410615

Tang Meirun, Lahcene Makhloufi + Show 1 more

Open Access

https://doi.org/10.3390/su122410615

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Abstract

Establishing equilibrium between business growth and environmental sustainability is one of the core focuses of green entrepreneurship. However, the scarcity of resources, ecological concerns, business growth, and survival are among the issues that are recognized by entrepreneurs. In the light of the Natural Resource-Based View (NRBV) and Dynamic Capability View, this study aims to examine the effects of Green Innovation Performance (GIP) on Green Entrepreneurship Orientation (GEO) and Sustainability Environmental Performance (SEP). As advocated by NRBV, this study emphasizes the importance of pursuing the three types of distinct yet interrelated environmental strategies and its association impact on GEO. The results indicated that internal green dynamic capabilities, namely, green absorptive capacity, environmental cooperation, and managerial environmental concern to have significant positive effects on GIP, where GIP positively impacted GEO and SEP. Besides, GIP partially mediated the relationship between internal green dynamic capabilities on GEO and SEP. The results also demonstrated that environmental regulations significantly moderated the relationship between GEO and SEP. Furthermore, by linking these three concepts in a single model, this study theoretically pioneering and responding to bridge significant gaps emerged in the NRBV theory. This study provides crucial practical implications for entrepreneurs, policymakers, and academicians. Limitations were also discussed.

Highlights

The significantly increasing impacts of environmental issues in China are due to the rapid economic development of the nation [1,2]
The natural resource-based view (NRBV) [15] that originated from the resource-based view (RBV) [16,17] emerged to cover these deficiencies of Dynamic capability theory (DCT) theory which suggest that firms are able to achieve sustainable environmental performance (SEP) in the light of entrepreneurial ecosystem when: (1) environmental market failure has been getting significant attention by firms’ green entrepreneurship orientation (GEO), and by (2) improving their relationships with different external environmental partners
DCT lens viewed GEO as a dynamic capability that fosters firms to achieve environmental and organizational performance in a highly uncertain environment, whereas Green Innovation Performance (GIP) seen as a dynamic practice that reconfigure the business process to absorb ecofriendly business opportunities

Summary

Introduction

The significantly increasing impacts of environmental issues in China are due to the rapid economic development of the nation [1,2]. Dynamic capability theory (DCT) advocate that green entrepreneurship orientation (GEO) is the firm’s proactive strategies that intend to capture green business opportunities in the light of the entrepreneurial ecosystem [1], whereas green innovation performance viewed as the firm’s internal capability that facilitates GEO strategies to influence firms sustainable environmental performance (SEP) [13]. The natural resource-based view (NRBV) [15] that originated from the resource-based view (RBV) [16,17] emerged to cover these deficiencies of DCT theory which suggest that firms are able to achieve SEP in the light of entrepreneurial ecosystem when: (1) environmental market failure has been getting significant attention by firms’ GEOs, and by (2) improving their relationships with different external environmental partners. The literature shows fragmented and lack of studies that examining GIP-GEO on SEP in the light of NRBV which motivates us to further conduct and examine these theoretical gaps by empirically testing the interrelationships

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Conclusion