Green Entrepreneurial Orientation and Sustainable Business Performance: The Mediating Role of Innovation Capability

Thomas Mensah Asabere; Adamu Wahab

doi:10.55047/transekonomika.v6i4.1245

Authors

Thomas Mensah Asabere* Department of Marketing and Entrepreneurship. University of Ghana Business School, University of Ghana- Greater Accra Region, Ghana https://orcid.org/0009-0006-8691-4912
Adamu Wahab Applied Technology Department, Enyan Denkyira Senior High Technical School, Enyan Denkyira, Central Region, Ghana https://orcid.org/0000-0003-3729-3962

DOI:

https://doi.org/10.55047/transekonomika.v6i4.1245

Keywords:

Firm Size, Green Entrepreneurial Orientation, Innovation Capability, Natural-Resource-Based View, Sustainable Business Performance

Abstract

Backgrounds: Ghanaian MSMEs face growing pressure to improve environmental and sustainability practices under resource constraints, yet existing studies have focused mainly on specific green practices, leaving the role of innovation capability in linking broader green entrepreneurial orientation to sustainable business performance underexplored.

Objectives: This study examines the relationship between green entrepreneurial orientation and sustainable business performance among Ghanaian micro, small and medium-sized enterprises, with particular attention to the mediating role of innovation capability.

Methodology: Data were obtained from 383 owner-managers, founders, and senior decision-makers of MSMEs in the Greater Accra and Ashanti Regions. Green entrepreneurial orientation was operationalised through five dimensions and combined into an equally weighted composite. The data were analysed using multiple regression and regression-based mediation with 5,000 bootstrap resamples.

Findings: Green entrepreneurial orientation was positively associated with innovation capability and sustainable business performance. Innovation capability was positively associated with sustainable business performance and significantly mediated the GEO-performance relationship. Firm size was positively associated with innovation capability, while its direct association with sustainable business performance was not statistically significant. Its indirect association through innovation capability and its total association with performance were significant.

Conclusions: The study provides evidence from Ghanaian MSMEs on a specific pathway linking green entrepreneurial orientation to sustainable business performance through broader innovation capability. The findings also show that firm size is associated with performance indirectly through innovation capability rather than through a statistically significant direct relationship.

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Author Biography

Thomas Mensah Asabere*, Department of Marketing and Entrepreneurship. University of Ghana Business School, University of Ghana- Greater Accra Region, Ghana

Marketing and Entrepreneurship

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