Green entrepreneurial orientation for enhancing firm performance: A dynamic capability perspective

Abstract Despite much attention has been focused on the importance of green entrepreneurial orientation, its impacts on environmental and financial performance remains unclear. Drawing on dynamic capability theory, we hypothesized that green entrepreneurial orientation has positive influences on two types of firm performance. The relationship between green entrepreneurial orientation and firm performance is moderated by green technology dynamism and knowledge transfer and integration. We tested the research hypotheses using data from 264 Chinese firms. The results indicate that green entrepreneurial orientation has positive influences on both environmental and financial performance. In addition, green technology dynamism only negatively moderates the relationship between green entrepreneurial orientation and environmental performance, while knowledge transfer and integration positively moderates the relationships between green entrepreneurial orientation and environmental and financial performance. This study enhances our understanding on green entrepreneurial orientation, described as a dynamic capability, can exploit new ideas and encourage innovativeness, show a propensity to catch potential opportunities, and take risks in transforming the social economy into the social-ecological economy. This study provides suggestions for firms to achieve competitive advantages under conditions of uncertainty and for effective knowledge transfer and integration.