All roads lead to Rome: antecedent configurations of green innovation and firm performance from a sustainable business models perspective

Green innovation, pivotal for both business performance and ecological sustainability, remains an enigmatic aspect within sustainable business models (SBMs). Current literature lacks clarity on the SBM configurations that catalyze green innovation and its firm performance implications, necessitating a more profound inquiry. This study presents a dual-study approach with a mixed-methods design to dissect these relationships. Leveraging data from 241 Chinese manufacturers, we first apply Fuzzy Set Qualitative Comparative Analysis (fs-QCA) to uncover that no single SBM factor is indispensable for green innovation. Instead, four distinct SBM configurations—Policy Incentive, Policy Coercion, Technology-Driven, and Technology Rent-Seeking—emerge as conducive to green innovation. Further analysis using Propensity Score Matching confirms that these configurations significantly enhance firm performance, indicating diverse effective pathways for green innovation adoption. This research enriches the discourse on green innovation by providing a nuanced configurational perspective, challenging traditional analyses, and expanding theoretical insights in the field.