Entrepreneurial growth aspirations and the adoption of environmental actions: the role of regulatory stringency

This study investigates how entrepreneurs’ growth aspirations relate to the adoption of environmental actions and how national environmental regulations moderate this relationship. We argue that growth-oriented entrepreneurs are more likely to adopt environmentally oriented behaviors due to long-term investment logic and legitimacy-seeking considerations. Moreover, we propose that stringent environmental regulations strengthen this relationship by reinforcing both mechanisms. Using a multisource dataset and applying a multilevel analysis, we find support for our hypotheses. The findings highlight the importance of both entrepreneurial growth aspirations and regulatory environments in shaping entrepreneurs’ engagement in environmental actions.