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Abstract Environmental sustainability is the primary task of environmental entrepreneurship by critically handling increased institutional, customer, and environmental pressures. Green entrepreneurship orientation (GEO) seeks to harmonize their relationships with the external environment to foster the impact of green innovation performance (GIP) on environmental performance (EP). Drawing upon the natural resource‐based view and dynamic capability theory, the study examines the effect of GEO on GIP and EP. Additionally, the moderating effect of managerial environmental concerns (MEC) on this relationship is also inspected. The results revealed that green absorptive capacity (GAC), environmental cooperation (EC), and MEC significantly affect GEO. Furthermore, GEO positively influenced GIP and EP. Indeed, GEO partially mediates GAC, EC, and managerial concern's relationship on green innovation and EP. Additionally, MEC significantly moderates the relationship between GEO and EP. Firms GEO should adequately enhance green practices performance and EP to accommodate their external environment relationships. The study concluded that green innovation development shifts firms from environmental management to sustainable development. Theoretical and practical implications were also presented.
Makhloufi et al. (Mon,) studied this question.
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