This research explores the effects of governance systems and market forces on green technology adoption (GTA) and green entrepreneurial orientation (GEO), and the impacts of these relationships on green innovation and firm performance in the Middle East and North Africa (MENA) region. Although Saudi Arabia and the UAE have increased their sustainability commitments through Vision 2030 and Green Agenda 2030, respectively, MENA economies are characterized by unequal ecological transitions that are caused by governance weaknesses, institutional heterogeneity, and resource constraints. Based on the Institutional theory, Diffusion of Innovation (DOI) Theory, Resource-Based View (RBV) and Ecological Modernization Theory (EMT), the present study constructs an integrative framework between market pressure (MP), managerial environmental concern (MEC), GEO, GTA, green/business innovation (INN), firm performance (FP), and sustainable economic progress (SEP). The data on 250 firms in six MENA countries were examined through a positivist, quantitative design, and the Partial Least Squares Structural Equation Modelling (PLS-SEM). The study contributes in four ways: it is the first empirical validation of this sequential causal chain in MENA setting; theorizes GEO as a dynamic capability; defines MEC as the main pressure-amplification mechanism; and generalizes EMT to the firm-level, connecting performance to sustainable economic progress.
Cynthia Hajj (Thu,) studied this question.
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