In the context of global sustainable development and China's "dual carbon" goals, small and medium-sized enterprises (SMEs) play a vital role in China's economic transformation. They must balance economic growth with environmental responsibility. This study, grounded in resource-based view theory, dynamic capabilities theory, and contingency theory, proposes a dual-mediation model: Green entrepreneurial orientation - green innovation - green supply chain management - sustainable performance. It also examines green technology dynamism as a moderating factor to evaluate how green entrepreneurial orientation influences the sustainable performance of specialized and sophisticated SMEs in China. Using the partial least squares structural equation model (PLS-SEM) and data from 369 SMEs, the study revealed: (1) Green entrepreneurial orientation significantly enhances sustainable performance, highlighting the importance of green entrepreneurial strategies; (2) Green innovation and green supply chain management partially mediate the relationship between green entrepreneurial orientation and sustainability performance, with green innovation having a more substantial impact, suggesting it is a key pathway for translating green entrepreneurial into sustainable performance benefits; (3) Green technology dynamism positively moderates the pathways from green entrepreneurial orientation and sustainability performance, green innovation to sustainability performance, and green supply chain to sustainability performance. These findings expand the theoretical understanding of green entrepreneurial in Chinese SMEs, clarify the dual-path mechanism of green innovation and green supply chain management, and enrich green entrepreneurship research through the lens of dynamic capabilities. They also offer theoretical and practical insights for SME managers and policymakers in adopting green strategies.
Yuling He1,3, Poh Kiong Tee2*, Hui Li3 and Meixuan Wang3 (Tue,) studied this question.