Green entrepreneurial leadership, and performance of entrepreneurial firms: does green product innovation mediates?

Abstract

Purpose Green practices recently gained attention for performance whereas financial and market performance has hardly been addressed by the researchers. Based on dynamic capability theory and resource-based view, we hypothesized that green entrepreneurial orientation and green transformational leadership have a significant impact over green product innovation as well as overall performance.Methodology The researchers collected data from 384 entrepreneurial firms using adopted questionnaires. The analysis has been made by applying structural equation modelling using a bootstrapping sample of 5000 with the help of SMART PLS 3.Findings The study results revealed that green entrepreneurial orientation and green transformational leadership have a significant impact over performance. Moreover, intervening effect of green product innovation is significant between green entrepreneurial orientation and performance of entrepreneurial firms, where green product innovation failed to mediate between green transformational leadership and performance of entrepreneurial firms.Research Limitations The sample was collected from limited cities and only from one developing country where the consumers do not have an elevated level of awareness for environmental concerns.

Keywords

• Green entrepreneurial orientation
• green transformational leadership
• green product innovation
• performance of entrepreneurial firms
• Sustainability
• Maria Garcia-Haro, University of Castilla-La Mancha: Universidad de Castilla-La Mancha, Spain