Green Entrepreneurship for Business Sustainability: Do Environmental Dynamism and Green Structural Capital Matter?

With the appearance of rising environmental challenges, businesses are increasingly recognizing the imperative of adopting sustainable practices. Within this context, the concept of green entrepreneurship has emerged as a pivotal force driving environmentally responsible innovation and economic growth. Employing Green Theory, this study examines the impact of green entrepreneurship (GEN) on business sustainability (BS) through the mediation role of green structural capital (GSC) and the moderation influence of environmental dynamism (ED). Using a quantitative research approach, 443 owners and managers of small and medium-sized enterprises (SMEs) (e.g., wholesale and retail trade, manufacturing, building materials, and scientific, professional, and technical activity enterprises) in Istanbul and Izmir, Turkey, were surveyed using both on site and electronic questionnaires. The data from the study were statistically analyzed using SPSS V.27 and structural equation modeling (SEM). The findings of this study show that green entrepreneurship (GEN) significantly enhances business sustainability (BS) and green structural capital (GSC), with GSC serving as a vital mediator in the GEN-BS relationship; however, environmental dynamism (ED) does negatively moderate the GEN-BS relationship, indicating that GEN’s positive impact on BS is accentuated under lower environmental uncertainties. Additionally, ED’s moderation effect is observed in the GEN-BS relationship via GSC, particularly under conditions of reduced dynamism, underscoring the nuanced role of environmental factors in sustainable entrepreneurship. The findings demonstrate green entrepreneurship and structural capital as key drivers for SME sustainability amidst environmental fluctuations.